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Relative newcomers to ad-supported OTT include Disney+, Max, and Netflix. On Disney+ and Max, over one-fifth of subscribers are ad-viewers, according to our September 2023 forecast. On Netflix, this figure is still fairly low. But on Prime Video, viewers will automatically be shown ads and have the option of upgrading to ad-free, rather than the other way around.

Still, most viewers are still ad-free. And streaming ad loads are much smaller than linear ones鈥攖hose shorter commercial breaks are part of the appeal. Streaming is making incremental gains, and eventually, ad spend will follow time spent. 3. CTV ad dollars spread out. In 2019, Roku, Hulu, and YouTube made up about half (45.9%) of the US CTV ad market. Now, they鈥檙e down to about one-third.

Walmart wants in on CTV ad innovation: The retailer is partnering with Fubo as the inaugural partner of a new takeover ad format.

Many in digital advertising, including the Interactive Advertising Bureau, have begun to use connected TV (CTV) as an umbrella term to include content delivered via CTV devices or OTT services.

Ad-supported subscription tiers from the big streamers, greater penetration of smart TVs, and free ad-supported streaming TV (FAST) channels all bode well for the CTV ad market. The triopoly dominates Canada鈥檚 digital ad market. Google, Meta, and Amazon account for three-quarters of spending in Canada, much higher than what they claim in the US and UK.

On an investor call, Iger restated the company鈥檚 commitment to streaming despite a quarter of subscription and revenue losses that resulted in significant job cuts. While Disney reorganizes and puts a post-Iger leadership plan in place, it may be unwilling to flaunt billions in a buyout.

With Amazon defaulting Prime Video viewers into its ad-supported tier, it鈥檚 clear the days of ad-free subscription video are waning. 鈥淲ith Netflix, Disney+, and now Amazon including ads, the pendulum has completely swung, and streamers are essentially forcing advertising upon CTV consumers,鈥� Willens said. Winner: Amazon. Retail media competitors vs. Amazon.

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.

Nearly 1 in 5 US consumers has dropped a paid subscription service in favor of a free ad-supported one in the past six months due to economic conditions, according to a November 2022 Deloitte survey.

This collaboration aims to offer a subscription-based "skinny" bundle of sports channels, including ESPN, Fox Sports, and Warner Bros. Discovery networks, alongside ESPN+. The service is set to launch in the fall of 2024, with an additional option to bundle Disney+, Hulu, and Max.

US Amazon Ecommerce Forecast 2024 (Subscription required). Gen Z Technology and Media Preferences 2024 (Subscription required). Note: Respondents were asked, "How much do you trust the following tech or media companies?".

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.

While advertising areas like connected TV and retail media boast strong potential, other channels, like social media and linear TV, are losing some steam. That鈥檚 why it鈥檚 important to explore other ad channels. For example, digital out-of-home advertising has made technological and creative leaps in the past few years, while the women鈥檚 sports ad opportunity is expanding. Here are some areas within digital advertising where you may be missing out on unlocking potential.

The State of Measurement in Retail Media (蘑菇AV subscription required). Retail Media鈥檚 Off-Site Imperative (蘑菇AV subscription required). Note: All numbers are 蘑菇AV estimates.

US Time Spent With Media H2 2024 Update (Subscription required). Youth and Social Media (Subscription required).

Our take: Netflix has shaken off the rough launch of its new subscription tier, but it鈥檚 still not the revenue generator the company is hoping for. If AVOD does become a hefty source of revenues and subscriptions for Netflix, it will take years for the results to materialize.

One of them, which people have started doing to replace the new TV is watching subscription streaming services and Ethan, your next trend is about this. Ethan Cramer-Flood (12:18):. Yeah, I'll keep going on this one.

Another subscription-free alternative to the main video platforms is TikTok. It can鈥檛 boast the same audience sizes as Netflix and Prime Video, but users on the platform are incredibly engaged. From a scant 2 minutes in 2019, the average time spent will rocket to 19 minutes by 2025. Disney+ aside, the big subscription platforms are struggling to engage.

And those are, at least NFL RedZone is ad free. But I wonder what that looks like in terms of advertising and advertising attention when you're able to flick back and forth between two screens.

US TV and Connected TV Ad Spending Forecasts H2 2024 (蘑菇AV subscription required). Digital Video Forecast and Trends Q1 2025 (蘑菇AV subscription required). Methodology: Data is from the January 2025 Nielsen report titled "Engaging Black Audiences: How Brands Impact, Grow and Win With Inclusion."

For comparison, 18.9 million more people watched OTT video in 2022 on a monthly basis. In 2026, 21.0 million more people will be watching OTT video than listening to digital audio. But time spent is increasing rapidly among existing listeners. In H1 2022, US internet users spent an average of 1 hour, 56 minutes per day streaming music, up 12 minutes from the previous year, according to data from GWI.

It will also introduce ad-free games for children, with no in-app purchases. Netflix reported record revenue and subscribers in Q4 and recently raised prices of its US Standard plan to $17.99 from $15.49 per month鈥攖he tier鈥檚 first hike in three years.

Connected TV Explainer (Insider Intelligence subscription required). More Chart of the Day:. 6/23 - Amazon on display. 6/22 - Game of phones. 6/21 - Eat your green. 6/20 - Digital drinking game. 6/16 - Retail it like it is.

Peacock, NBCU鈥檚 streaming service, is raising subscription prices ahead of the games. Ad-supported subscriptions will increase by $2 to $7.99 monthly and ad-free subscriptions will jump to $13.99. We forecast total US TV ad spend (including connected TV and linear) will reach $87.74 billion in 2024.

Digital pay TV is drawing fewer cord-cutters than it did in previous years now that providers have raised prices to align with linear TV subscription rates. 3. Five streaming services will exceed $1 billion in ad sales. Hulu, YouTube, Amazon, Roku, and Peacock will each generate more than $1 billion from their ad business this year, per our March 2024 forecast.