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鈥淭he growth that you see in CTV and video is partly a reflection of the fact that virtually every streaming service, including those that vowed never to introduce ads, have now introduced ad-supported tiers,鈥� said Enberg. A growing share of CTV spend is coming from retail media, which will account for 14.6% of CTV ad spend in 2024 and over 20% of CTV ad spend come 2027, per our forecast.

The existing imbalance between time spent and ad allocation can be partially traced to limited CTV inventory and the slowness with which OTT services embraced and enabled ad-supported subscription tiers and reliable ad tech. But that is all rapidly changing, and some spending traditionally earmarked for mobile and desktop/laptop might be better spent with CTV in the coming years.

Platforms with global footprints and ad-supported tiers appear more insulated from consumer pullbacks, but subscription saturation may limit further growth. Our take: Marketers should prepare for an uneven 2025. Tariffs may not devastate ad spend, but they will force a reprioritization of channels and partners.

So I think the ad-supported tier would work very well in Asia Pacific and I believed I read somewhere that they are actually considering offering a free ad-supported tier to certain markets in Asia Pacific as well. So yeah, the short is that people don't mind ads as much if that means that they can pay less for the subscription. Bill Fisher (12:35):. Yeah. So that's like streaming video.

Yeah, I mean I say password sharing, but there's a lot of stuff that goes into that slice of the pie, like the ad supported offering. It's now the cheapest way to subscribe to Netflix. There's been really strong growth for the ad supported tier since the password sharing changes started.

So, you're going to have your NFL, your OTT in general, you're going to have your Prime Video, and you're going to have your Freevee, and your FAST Channels, so all of those people are basically contributing to this CTV portion or drawing from that CTV portion. So, that's basically how I look at it. It's all about retail media.

CTV will remain an important channel for advertisers, but we expect more moderate growth for 2025 and beyond, after leveling out from a boost driven by the introduction of Amazon鈥檚 ad-supported tier. Use this chart:. Assess your digital ad budget. Advocate for greater investment in CTV. Highlight the shift from traditional to digital.

We expect Netflix鈥檚 new ad-supported subscribers to watch the service somewhat less than the cohort paying full price. The same story will play out with Disney+: We expect its time spent to decline by 1.0% this year thanks to its less-engaged ad-supported viewers. Estimates for Hulu and the other sub OTT services were not affected by the writers strike.

Non-members getting ad supported access to a limited set of Audible titles, according to their help page, and can hear up to eight ads in a 24-hour period. Ms. Myers notes that Spotify has indicated it might make a similar move because A. Last summer it closed a hundred million deal to buy audiobook distributor, Find a Way. And 2.

Netflix announced a partnership with Microsoft to serve ads for its ad-supported tier, which launched in November 2022. Microsoft held a 2% share of open programmatic connected TV ads as of H1 2022, prior to the deal. But things haven鈥檛 exactly picked up since. Netflix鈥檚 ad-supported tier is struggling to attract subscribers, and Microsoft won鈥檛 become an ad-supported streaming giant anytime soon.

Something else that's also interesting to watch is that because there are so many subscription video on demand players and the costs of these services keep rising outside of bundle offerings and ad supported tiers, something that is seeing significant growth are free ad supported streaming options. Things like Tubi have been doing very well. Roku has been doing well.

Positive: There鈥檚 appetite for ad-supported TV. Big platforms like Netflix, Disney+, and Amazon Prime Video have incorporated ad-supported tiers into their previously subscription-based approaches. We project connected TV (CTV) ad growth will reach 21.2% this year, outpacing the overall media market. CTV advertising is becoming synonymous with TV on the whole.

The cost of doing business will likely be passed on to customers, which could lead to a drop in subscriptions or even more ad-supported tiers. Dive deeper: Read our Worldwide Subscription OTT Users Forecast 2023 to get the latest analysis on streaming video services.

Interesting to see that half of the new Disney+ signups in its latest quarter chose the ad supported tier, so they're also trying to ramp that business up. Paul Verna:.

On today's podcast episode, we discuss whether the way people watch sports has changed, if Uber and Lyft will ever be able to turn a profit, whether Peacock can keep its head above water, what happened to the TikTok ban, what The Walt Disney Co. should do with ESPN, who's not on the internet, and more. Tune in to the discussion with our forecasting writer Ethan Cramer-Flood and analysts Bill Fisher and Max Willens.

So we're seeing rapid transition into ad supported streaming services. We've got all these fast companies out there that are blowing up. We've got the legacy ones moving over to ad supported video on demand or ad tiers, et cetera. This is changing, but it's still nowhere close and marketers and advertisers have not caught up. Some of that's because of the lack of inventory.

Read the rest of the report, US Time Spent With Sub OTT Streaming 2025.

Consider which ad-supported platform to advertise on. More like this:. Despite a reduction in ad inventory, the market for TV and CTV ad spending will grow by billions. The shifts that will impact 2024鈥檚 video ad landscape. What does the narrowing range of streaming service CPMs mean for advertisers? 3 burning CTV questions answered by our analyst.

But it's having a ripple effect across the entire economy in terms of how brands are approaching their businesses site as they're going over the top of these established business models. Marcus Johnson:. Yeah, something else is having a ripple effect. You mentioned in the world of influencers, the Hollywood strikes.

Our OTT subscription revenues forecast doesn鈥檛 include Amazon. Because it is not possible to break out how much of Amazon Prime鈥檚 subscription revenues are attributable to streaming, we exclude Prime from our OTT subscription revenues forecast.

The most obvious way streamers stand out is inventory. 39% of advertisers are buying CTV ad spots because more inventory is available due to new ad-supported streaming platforms. Exclusive rights make inventory stand out. Amazon鈥檚 Prime Video has Thursday Night Football. Peacock has Sunday Night Football. Apple TV+ has Major League Soccer.

On today's podcast episode, we discuss the unofficial list of the most interesting retailers for the month of June. Each month, our analysts Arielle Feger, Becky Schilling, and Sara Lebow (aka The Committee) put together a very unofficial list of the top eight retailers they're watching based on which are making the most interesting moves: Who's launching new initiatives? Which partnerships are moving the needle? Which standout marketing campaigns are being created? In this month's episode, Committee members Becky Schilling and Sara Lebow will defend their list against vice president of content Suzy Davidkhanian and director of Briefings Jeremy Goldman, who will dispute the power rankings by attempting to move retailers up, down, on, or off the list.

So think YouTube TV, Fubo, and Sling TV, and more attention on ad-free and ad-supported tiers of hybrids, like Hulu, HBO Max, Paramount+. They pay more attention to ads on those platforms than to ads on free ad-supported streamers or FAST or smart TV channels on FAST, so things like Roku Channel or Tubi. I thought it was interesting to note.

Its password-sharing crackdown could influence the most price-sensitive customers to adopt the cheapest, ad-supported option. The writers strike will restrict content production. Cord-cutting will limit the strike鈥檚 viewership impact when compared with previous TV labor stoppages. However, the strike鈥檚 stoppage of US scripted productions has ramifications.

If consumers choose not to add new subscriptions, free, ad-supported TV (FAST) providers stand to benefit. Tubi, for example, is projected to grow viewership 5.9% YoY in 2025, per our forecast, driven by Super Bowl streaming and the 2024 election cycle. Amazon鈥檚 Q2 growth will be more moderate, but Walmart is surging.