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It鈥檚 also one of the only top streamers that doesn鈥檛 sell 脿 la carte titles on top of subscriptions, like YouTube and Prime do. Having a vast and varied content library can help attract and retain subscribers, but it can also make browsing more difficult and time-consuming.

In the past five years, practically every major streaming service introduced ad-supported subscriptions. With so many premium services flooding the market, ad inventory has never been more plentiful. A recent 蘑菇AV analyst report found that the increase in supply is not just ensuring advertisers are able to easily get seen鈥攊t鈥檚 also driving down ad costs.

That increase is being driven by consumers watching more subscription over-the-top (sub OTT) services such as Amazon Prime and Netflix, more ad-supported video-on-demand (AVOD) services like Hulu and Tubi, and more YouTube. CTV time spent accounts for 84% of time spent with 鈥渙ther connected devices.鈥� This forecast features eMarketer鈥檚 first estimate of US adults鈥� time spent with CTV from 2019 to 2024.

This article is part of 蘑菇AV鈥檚 client-only subscription Briefings鈥攄aily newsletters authored by industry analysts who are experts in marketing, advertising, media, and tech trends. To help you finish 2024 strong and start 2025 off on the right foot, articles like this one鈥攄elivering the latest news and insights鈥攁re completely free through January 31, 2025.

(Subscription required). US Ad-Supported vs. Ad-Free Streaming Video Viewers 2024 (Subscription required).

Some YouTube creators have already licensed their content to subscription streaming services, including Amazon and Netflix, and FAST TV channels. Podcasts. Podcast creators played a pivotal role in the 2024 US presidential election, signaling their growing power in news. Hollywood. More creators have signed with Hollywood talent agencies, accelerating the growth of their businesses. Retail.

Seventy-five percent said they preferred using free AVOD services rather than paying subscription fees for ad-free video. Zoom out: LG鈥檚 report highlights CTV鈥檚 ability to deliver highly targeted ads that allow advertisers to forge connections with audiences across demographics. Prominent CTV ad tech and product launches in the last year have centered on specific consumer targeting.

While ad supply is growing across the market, ad loads are stable because streaming services still rely heavily on subscriptions. To even out that income stream, more streaming services are pushing ad-supported plans that are significantly less expensive than their ad-free counterparts. 2. Linear TV ads still dominate in reach.

For the most recent quarter, total revenues reached $195 million, up 12% YoY, with marketplace revenues rising 20% ($50 million) and subscription revenues increasing 10% ($146 million). Key stats:. The company now serves 125 customers with annual subscription revenues over $1 million, up from 105 last year.

A prolonged recession may cause some streaming users to downgrade from premium tiers to more affordable plans with ads鈥攐r cancel subscriptions altogether in favor of free ad-supported streaming. This would increase time spent with ad-supported content, expanding inventory and potentially easing advertiser pullback. Impact on Digital Ad Spending by Industry.

Amazon introduced ads to its previously ad-free streaming service. "In the adpocalypse," she writes, "every company is an ad company.".

Even though ad-supported streaming video predates subscription-focused streaming, much of the conversation around streaming services has focused on the latter, thanks to the rapid rise of Netflix. Indeed, more than 90% of OTT video service users will watch content via a subscription service at least monthly in 2022.

Many cord-cutters or cord-nevers turned to streaming to help counteract the high costs of cable subscriptions, only to find the ad-free prices quickly adding up. Now they have more price-efficient options, even on their favorite premium channels. One place this is evident is in the increasing popularity of FAST (free ad-supported streaming TV) channels.

Amazon will get a growth boost from its OTT video service. Amazon will benefit from a new kind of growth model in 2024, thanks to its ad-supported video-on-demand initiative with Prime Video. By the end of the year, Amazon will have transitioned most of its OTT viewers to an ad-supported subscription tier in the US, Canada, Germany, the UK, France, Mexico, and several other major markets.

Thirty-nine percent of CTV/OTT advertisers cited transparency on where ads were running as one of their biggest challenges in CTV/OTT marketing, according to an April 2024 Advertiser Perceptions and Premion study. As more brands move their ad dollars over to CTV, our analyst Ross Benes calls overexposure 鈥渢he biggest bugaboo in streaming.鈥�. Finding your audience and keeping it.

As one other interesting trend model or interesting initiative model is meta launching their ad free subscription in Europe. And that's not going to get rid of either rage bang, the trolling, all that, but it's going to be able to see there really is an appetite for subscription-based social networking and maybe that could then evolve into one or the other forms of talked about in this article.

When Netflix first rolled out its ad-supported tier in late 2022, its CPMs (the cost to reach 1,000 users) were nearly $60, per our data. Disney+ CPMs were slightly lower at $50, but still much higher than Hulu鈥檚 at $24.44.

US adults spend more time with total audio (radio plus digital) each day than with social media, digital gaming, or subscription over-the-top (sub OTT) streaming services. Digital audio鈥檚 advertising ecosystem is very different from radio鈥檚, but neither pulls its weight compared with other media.

Ad loads are still short right now compared to linear TV, and binge-watchers get an ad-free episode after every few episodes. But if Netflix and other platforms boost ad loads to increase revenues, time spent could take a hit from frustrated viewers logging off. Amid streaming鈥檚 success, linear TV is still relevant. Time spent is in decline, and that trend won鈥檛 change.

Disney鈥檚 new channels include Hallowstream, Hits & Heroes, and Throwbacks, all tailored to US subscribers, reflecting the entertainment giant鈥檚 strategic pivot to offering both subscription and ad-supported options. The landscape: The percentage of US adults who have used at least one FAST platform is growing from 44% in 2021 to an expected 65% this year.

This article is part of 蘑菇AV鈥檚 client-only subscription Briefings鈥攄aily newsletters authored by industry analysts who are experts in marketing, advertising, media, and tech trends. To help you finish 2024 strong and start 2025 off on the right foot, articles like this one鈥攄elivering the latest news and insights鈥攁re completely free through January 31, 2025.

This article is part of 蘑菇AV鈥檚 client-only subscription Briefings鈥攄aily newsletters authored by industry analysts who are experts in marketing, advertising, media, and tech trends. To help you finish 2024 strong, and start 2025 off on the right foot, articles like this one鈥攄elivering the latest news and insights鈥攁re completely free through January 31, 2025.

鈥淐TV ad loads are under 10 minutes of ads per hour, whereas linear is more like 15 minutes of ads per hour, and there are a lot of viewers still on ad-free plans, especially on Netflix,鈥� Benes said. 3. Linear TV is losing ad share faster than time spent. Linear TV鈥檚 share of total US ad spend will drop to 11.2% in 2026, down from 28.8% in 2019, according to our forecast.

Free premium video streaming services鈥攁 subset of AVOD that鈥檚 limited to services accessible without a subscription鈥攚ill top 100 million US viewers in 2023 and continue growing through 2027. Although growth in these services is slowing, the milestone is another indicator of consumer appetite for ad-supported streaming. Household viewing continues its shift to digital.