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Half of Netflix鈥檚 new subscriptions came from its ad-supported tier, propelling it past 70 million ad-supported users. AVOD options also continue to make gains, giving firms like Roku a leg up. For advertisers, streaming saturation means cheap access to consumers. With subscription revenues set to slow, streamers will rely on advertising to maintain growth.

From the resonance of retail media networks to the resurgence of social ad spend and burgeoning subscription over-the-top (sub OTT) platforms, the impact of these channels is being felt in the overall ad market. October saw a 3.2% YoY growth for the US ad market, according to the Standard Media Index ad market tracker.

They also have a variety of SVODs that they're trying to monetize through subscriptions. So it's sort of a double-edged sword for them in terms of cannibalizing their revenue streams, in terms of subscription revenue both on the cable and on the streaming side, to making it 100% reliant on advertising monetization which a FASST channel would require.

US TV and CTV Ad Spending Benchmarks: Q3 2024鈥� (蘑菇AV subscription required). US CTV Time Spent vs. Ad Spending 2024 (蘑菇AV subscription required). Note: Data was provided to 蘑菇AV by iSpot.TV.

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.

Monetization via subscriptions limits digital audio ad slots. The relatively low ad spend reflects, in part, limited inventory. Audio subscriptions will account for 63.0% of digital audio revenues in 2024. Even when taking time spent into consideration, audio advertising remains low. Digital audio will earn 5 cents per user hour in 2024, compared with 8 cents for radio and 21 cents for TV.

But in the UK, leaders like Amazon, Netflix, and Amazon-owned Freevee make up a significant chunk of viewership across both free, ad-supported TV platforms (FAST) and subscription over-the-top (OTT) video. Tubi managed to excel in the US despite the crowded streaming market through offering free, ad-supported access to content that differentiates it from major competitors.

It鈥檚 the No. 1 way to access long-form content via over-the-top (OTT) services, according to Roku and Fuse Insights鈥� 鈥淰ideo-on-Demand Evolution 2024鈥� report. These OTT options include subscription video-on-demand and ad-supported video-on-demand. CTV formats, which include smart TVs and streaming sticks, are well above other access devices for streaming viewership in Canada.

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.

The news: Apple TV+ is losing more than $1 billion annually, making it Apple鈥檚 only unprofitable subscription service. Those losses are adding up despite Apple TV+ reaching 45 million subscribers in 2024, per The Information. Only 22% of connected TV (CTV) users watched Apple TV+ in 2024, per LG, compared with 45% for Hulu, 61% for Amazon Prime Video, and 66% for Netflix.

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.

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.".

US Social Network Forecasts 2024 (Subscription required). The CTV Opportunity (Subscription required). Note: Respondents were asked, "What are your primary goals with YouTube marketing?". Methodology: Data is from the September 2024 Influencer MarketingHub "YouTube Marketing Report 2024." 250 marketers worldwide were surveyed during August 2024.

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.

With ad-supported streaming now making up 46% of subscriptions and 57% of Q1 gross ads, the addressable market is expanding fast. That said, macro conditions remain a factor. Per our April 2025 forecast, CTV ad spending is projected to grow 16.8% this year in a limited-tariff scenario鈥攂ut growth drops to just 2.3% if tariffs ramp up.

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.

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.

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.

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.

Ad-supported video-on-demand (AVOD), such as The Roku Channel and ad-supported versions of subscription services like Netflix and Disney+. YouTube, which will have nearly 45% of its viewing time on CTVs. Digital live TV services, such as Hulu + Live TV. Mobile remains the king of digital advertising, largely due to its diversity of content.