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The number of streaming services with at least $1 billion in US connected TV (CTV) ad revenue is set to quadruple from 2020 to 2026, per our March 2024 forecast. The boom isn鈥檛 without its growing pains, though. Advertisers still need to face confusion with fragmentation, unreachable audiences who pay for ad-free streaming, and problems with campaign measurement. We delve into these three challenges and provide solutions.

Wrapped 2024 feels more like a beta test than a celebration, hinting at a company spread too thin to please its audience.

New features let users join conversations with AI hosts. Experimental yet groundbreaking, it promises tailored podcasts but risks monotony with limited host variety.

Brand adoption accelerates: TCL has released five AI-generated short films to promote its streaming service, using ComfyUI and Runway to significantly reduce production costs. Visual inconsistencies and audio matching issues are present but have been deemed acceptable by the company. Content decisions are being driven by user data to maximize potential ad revenues.

We classify FAST as a subset of ad-supported video-on-demand (AVOD) streaming. FASTs represent the free side of streaming advertising. Ad-supported tiers of subscription streaming services like Hulu and Peacock are not part of FAST. Most of the content on FAST services is old and licensed. Entire channels are built around shows such as 鈥淏aywatch鈥� and 鈥淢idsomer Murders.鈥�

Big Tech battled Europe鈥檚 new rules in 2024: Apple opened its ecosystem to comply with DMA while Meta faced fines and scrutiny over data use and subscriptions. We can expect continued stringent regulations.

The streaming service is expected to bypass the video-centric social media giant by 2026. Nonetheless, Netflix use is influenced by social media: 45% of Gen Zers choose what to watch based on trending content, according to Tubi. The cyclical effect between social media and streaming is speeding up.

And there are CEOs of other companies and adjacent industries where there's also a lot of saturation, specifically streaming and entertainment who are saying like, "Oh, this administration is a green light that we could do further mergers."

In 2024, connected TV (CTV) platforms raced to expand ad-supported content, Google delayed its cookie plans (again), and brands chased insights from social media giants on how to break through to consumers.

On today鈥檚 podcast episode, we discuss when and where we will start to see ads alongside ChatGPT, how other AI startups are rolling them out, and what kinds of GenAI ads will be most impactful. Tune in to the discussion with Senior Director of Podcasts and host Marcus Johnson, and Analysts Jacob Bourne and Daniel Konstantinovic.