蘑菇AV

Among active users, Netflix takes the platform crown, but ad-friendly TikTok, Hulu, and YouTube have better outlooks. CTV is filling gaps in declining linear TV ad spend. US Time Spent vs. Ad Spending 2023 (Insider Intelligence subscription required).

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.

Examples: Max, Netflix, Disney+. Programmatic platforms: Advertisers purchase via programmatic platforms, which allow them to bid across multiple apps鈥� inventories. Pros: Extended reach, cheaper prices. Cons: Less transparency and control over where ads are served. Examples: MNTN, The Trade Desk, PubMatic, Magnite. CTV device-makers: Advertisers buy from CTV device-makers.

Among Tinuiti鈥檚 clients, YouTube CTV spending jumped 31% while streaming services like Max and Netflix had growth of just 6%. Though YouTube saw one of the largest jumps, the quarter marked the first time since Q4 2021 that YouTube, Google search, Amazon, Instagram, and Facebook all saw spending increases.

Digital audio will claim far more time per day from listeners than YouTube video (0:48), Netflix (1:02), or Hulu (0:53) will from their users. Podcast listeners will spend about as much time with podcasts (0:57) as those Netflix and Hulu watchers will with their video services. Social gets the ads, audio gets the time.

SVOD is regular Netflix. AVOD, advertising video on demand, is Netflix with ads. Then you've got the FAST that we talked about in an episode last week, the Roku Channel, Tubi, those free ad supported streaming services. Then you've got YouTube that's been watched on a TV. You've got streaming TV services like FuboTV and Hulu with live TV. A lot of different things are caught in that CTV definition.

But it makes sense why a Peacock user and a Netflix user may be the same type of person, but Big 10 Plus and anime services might not go together. So it'll go where there's shared ownership or shared interest, but some of these niche services are completely different than another niche service and it would just be a weird format to throw them together. Marcus Johnson:.

For one, original content spending on Prime Video is high; for every $1 Netflix spent on content last year, Amazon spent $3. Amazon鈥檚 handling of its ad-supported launch has also received blowback from consumers, and subscription growth is stagnating for most leading services. The MrBeast deal targets all three of those pain points.

Disney+ and Netflix both launched ad-supported tiers last year. Verna expects those platforms to be major players, but it will take several years before they build up their ad businesses. Amazon is considering an ad tier for Prime Video, which could lead to an explosion in CTV ad spend from brands looking to take advantage of Amazon鈥檚 retail media data.

鈥淲e鈥檙e definitely going to see [Disney+ and Netflix] grow and scale up and eventually get toward the top of the ranking,鈥� he said. And keep an eye on the $10.74 billion going to other services, because even smaller platforms are potential contenders in this emerging market. This was originally featured in the eMarketer Daily newsletter.

We're not going to continue to sit with Netflix longer and longer and longer and longer all the time. It's going to settle in and it seems like we're getting to a point where it's starting to settle in. Oscar Orozco (14:15):. And there's just so many platforms too, right Ethan?

The end of 2022 saw major players Netflix and Disney+ launch their ad offerings. Mid-tier streaming services have seen significant ad growth as well, suggesting a fairly even distribution of good fortune across the industry. Performance marketing is boosting CTV revenues. Clearly there is massive demand for CTV among advertisers. As more inventory comes online, the money is ready to meet it.

And then you throw on Netflix because everyone has it. Netflix Basic for 10 bucks, you've got $40 for the internet, $72 for YouTube TV, and $10 for Netflix Basic, you're already at $122. So it is creeping closer and closer to what cable costs. But my next question to you is, do people care? How much are people looking at it? Because it's a natural comp, isn't it? Because that's what we used to have.

I mean, I feel a little odd comparing it so much to Netflix and Disney because those are video streaming and not audio streaming. But I do think it is a good point of comparison that in the first quarter for Netflix and Disney's ad supported tiers, we really didn't see a lot of subscriptions jump down to the cheaper price.

While recent earnings from Netflix showed that established companies are still on top in the video streaming world, they could soon be looking over their shoulders, too.

CTV ad spend is on the rise with new ad tiers from Netflix, Disney+, and (HBO) Max, but both buying and measurement are still fragmented. 5. Cost per click (CPC) varies significantly across platforms. CPC is another metric for performance marketers to watch closely when building a marketing campaign.

YouTube鈥檚 competition comes from both streaming and social media, but it boasts more users than both Netflix and TikTok. 鈥淒eclines in revenue aren鈥檛 good by any stretch, but it鈥檚 not a death sentence for YouTube,鈥� said Mitchell, pointing to the platform鈥檚 popularity, moves into short video, and creator partnerships.

Roku isn鈥檛 just a CTV hardware company: It鈥檚 also dabbled in original content and advertising tech, making it desirable to a number of major video competitors from Netflix to Amazon. But high interest rates and lower revenues for streamers in general have lessened the chance of an acquisition.

Other major brands that have partnered with Roblox include Netflix and Nike, both of which declined to comment to AdAge when asked about a lack of proper disclosure. Rough goings for the metaverse: Roblox鈥檚 advertising shakeup is especially notable because it and competitor Fortnite are the only two metaverse platforms to have attracted significant brand attention.

Why Hulu matters: In the US, Hulu is the second-largest streaming service just behind Netflix, and is expected to reach 130.7 million viewers this year, per our October forecast. But with Comcast, Disney, and others launching their own branded, flagship streaming services, Hulu鈥檚 place in the mix is unclear.

Last year, Netflix and Disney+ joined the ad world. Those lower-price tiers are the future for streamers looking to attract more users and boost ad revenues. 5. One quick word on Meta. 2022 was not Meta鈥檚 year. 2023 won鈥檛 be either. The company formerly known as Facebook spent billions of dollars building out its metaverse dreams this year, only to face online ridicule and massive layoffs.

Netflix and Disney+ have already started doing this by adding ad-supported membership tiers. PF Chang鈥檚 is also hopping on this trend, offering a free loyalty program with some paid membership options. Expanded features. Brands should look for opportunities to provide more to their customers.