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

According to our February forecast, about 80% of US Prime Video viewers watch the service with ads, giving it a US audience of 130.4 million. Its aggressive push into the ad-supported market has forced major competitors to lower their CPMs.

Paramount expands shoppable TV capabilities with Shopsense AI partnership: The two companies team up to enable viewers to shop the MTV VMAs, with plans to install similar features in other Paramount content in the coming months.

US consumers are flocking to low-cost plans with some amount of advertising.In 2022, increases were especially pronounced among ad-supported video on-demand (AVOD) services.

32% of US adults are watching subscription video-on-demand (SVOD) services less because they are watching more on free streaming services, per a July 2023 Aluma Insights survey. For 34% of US adults, viewing behaviors across streaming services haven鈥檛 changed as a result of free streaming services.

For the second half of 2023, US retail media ad spending will reach $46.38 billion, per Insider Intelligence鈥檚 forecast. Meanwhile, connected TV (CTV) ad spending will also post growth of 20.0%. In response, marketers in 2024 will create dedicated retail and media strategies to leverage retail data sets in CTV.

US TV ad spend will fall 8% this year, per our forecast. Its share of total media ad spend is also in decline as marketers turn to faster-growing formats such as connected TV (CTV) and retail media.

US adults will spend an average of 230.3 minutes per day on mobile in 2023, according to our forecast. While they will spend less time with connected TV (CTV), at 114.9 minutes per day, the gap between CTV and mobile is shrinking.

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

In 2023, an estimated one-quarter of US premium subscription video-on-demand (SVOD) customers are on ad-supported plans, according to Antenna. That percentage could easily rise to one-third within a year.

On today's podcast episode, we discuss what's most to blame for this sustained ad spending rebound, what concerns us about it, and what we expect to see from ad spending in 2024. "In Other News," we talk about why ad-blocking rates are experiencing a gradual uptick and a cord-cutting milestone. Tune in to the discussion with our director of forecasting Peter Newman and vice president of content Paul Verna.

Temu has risen rapidly up the ranks of the most popular US online retailers. The platform launched in the US in September 2022 with a massive budget for advertising and promotions from parent PDD Holdings, which also owns Chinese ecommerce giant Pinduoduo. By May 2023, Temu鈥檚 US online traffic ranked it as the fourth-most-visited retailer, per Comscore data, after Amazon, Walmart, and eBay.

4 in 10 US agency and marketing professionals have reallocated ad dollars from linear TV to spend on connected TV (CTV), according to March 2024 data by Interactive Advertising Bureau (IAB), Advertiser Perceptions, and Guideline.

Ad-supported video-on-demand (AVOD) services will gain more than triple the US viewers that subscription OTT video will this year, per our forecast. AVOD will add 13.3 million viewers, including 4.3 million from free premium platforms, for a total of 157.1 million. Meanwhile, subscription OTT services will gain 4.3 million viewers to reach 222.2 million.

The Trade Desk is developing a CTV operating system: Its ambitions could trigger a new age in CTV advertising and potentially upend the balance of power.

Subscription OTT video is chasing linear TV in terms of time spent in the US. We estimate adults still spend significantly more time per day watching TV, but that figure is decreasing and will fall below 3 hours this year. Meanwhile, for subscription OTT video, time spent will surpass an hour and a half per day. But ad spend on these platforms is not proportional to time spent.

When did each state join the US? I won't go through them all because Stuart will be furious. He runs the team. Yory, do you know the youngest US state, states, I should say? Yory Wurmser (01:16):. Well, it's going to be Hawaii, I think as the youngest, and Alaska is right before it. Marcus (01:21):. Yeah. Pretty much neck and neck.

YouTube is the most widely used free video service among US internet users of all generations, according to Kagan. Its highest saturation is among Gen Zers (82%) and millennials (78%).

What do you get when you cross a $35 billion ad platform with a 160 million viewer streaming service? A snapshot of Amazon鈥檚 US retail media connected TV (CTV) potential. Luxury brand Movado is leveraging that potential to push video campaigns for Amazon Prime and Freevee viewers.

Over a quarter of digital time is spent with a CTV, but less than 10% of US digital ad dollars flow into CTV.

Nearly a third of the US population will be free ad-supported streaming TV (FAST) viewers by 2027, accounting for a total of 114.5 million viewers, according to our September 2023 forecast. That large audience base, coupled with the rise of new players and the abundance of ad inventory, is making FASTs increasingly appealing to media planners鈥攅specially those on a budget.

Combined US TV and connected TV (CTV) ad spend will grow every year through to the end of our forecast period in 2027, when it will reach nearly $100 billion, according to our October 2023 forecast.

Key stat: 58% of US adults stream video via connected TV (CTV), according to ViewNexa.