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On today's episode, we discuss whether watching TV with other people ruins the potential of targeted connected TV (CTV) ads, who's winning the CTV advertising race, and how CTV stacks up against traditional TV ad spending. "In Other News," we talk about Netflix's road map for video games and what to make of its 1 million user milestone for its ad tier. Tune in to the discussion with our analyst Paul Verna.

Users watched over 400 million hours of podcasts monthly on living room devices. 4K video uploads rose 35% in 2024 as creators invested in higher production value for TV viewing; gaming and tech review channels lead 4K adoption, as their content particularly benefits from higher resolution.

OpenAI partnered with Future, the owner of Marie Claire, Tom鈥檚 Guide, PC Gamer, and Tech Radar, to include their content in its ChatGPT search product. Zooming out: The two AI companies are facing scrutiny and legal challenges over the information used to train their generative AI (genAI) models.

Nonmobile gaming ad revenues will grow faster than the overall market, although it remains a small part of the story. Revenues from ads shown on console and PC games will account for about 9% of the gaming industry鈥檚 total take, but the category is growing quickly. We anticipate nonmobile gaming ad revenues will increase by 17.2% this year, to reach $793.7 million.

Timing ad buys to seize on key engagement windows: Our Industry KPI data reveals Gen Z has predictable spikes in searches for apparel, gaming content.

AppLovin's Axon engine drives ad success: Its AI-powered product boosted software platform revenues by 66% year over year.

Gaming offers a long runway of opportunity for advertisers. In 2025, US digital gamers will spend nearly as much time playing as social network users spend on social platforms each day (1 hour, 48 minutes versus 1 hour, 51 minutes, respectively). But at $8.76 billion, US gaming ad revenues will account for just a fraction of the $102.66 billion that social networks garner in ad spending.

Almost three-fourths (74.8%) of Gen Zers will be digital game players by 2027, according to our December 2024 forecast.

Despite financial troubles among some esports and gaming video platforms, ad revenues will continue to grow for both media.

This first-of-its-kind report compares and contrasts our US ad spending forecast with our US time spent with media forecast. It identifies unexpected incongruities between how marketers are spending ad dollars and where consumers are spending their time.

The year-old Luna cloud gaming unit plays into Amazon鈥檚 strengths. When it launched in March 2022 following a long beta period, Luna joined a market crowded with gaming incumbents (Microsoft, Sony, Nintendo, and Nvidia) and tech players (Apple and Google).

In-app purchase spend is increasing, with gaming generating the majority of purchases, but ad spend will continue to dominate. Gaming saw healthy growth during the pandemic, but a drop in activity in 2022 also led to a drop in spending on virtual goods. In-app ad spend growth remains healthy at 14.8% this year, translating to an additional $20.52 billion in ad sales over 2022. Use this chart:.

Gaming on smartphones saw declines for key metrics in 2022, putting a wrinkle in a growth trend that nearly dates back to the launch of app stores. Read on for figures that highlight what鈥檚 changing, and how these changes might impact user acquisition.

The average US adult spends just over an hour playing video games per day, according to our estimates. Such a sizable share of attention offers a prime opportunity for brands to advertise in games鈥攅specially since traditional barriers to brand advertising have been lowered. Big changes have opened opportunities for brands across platforms.

Gaming. The opportunity: More than half of US adults (and nearly three-quarters of US Gen Z adults) are gamers, according to our forecasts. But gaming accounts for less than 5% of US ad spend, according to the Interactive Advertising Bureau. Gen Alpha and Gen Z have grown up with gaming, and platforms like Roblox are second nature to the digital natives.

Despite the fact that in-game ad spending will see relatively modest growth over the next few years, games still offer several opportunities for brands.

On today's episode, we discuss the appeal of Prime Video with ads, why we might see more honest and transparent advertising, the inevitability of face computers, Netflix's chances of becoming a significant gaming hub, how the average retirement age is changing and more. Tune in to the discussion with our analysts Ross Benes, Blake Droesch, and Max Willens.

Final question, Ross in the lead talking about Disney and gaming. So Disney is investing 1.5 billion into Fortnite creator Epic Games in the company's most significant venture into gaming yet writes our Daniel Constantinovich.

Amazon sees a big opportunity in beauty: The retail giant is hosting the Summer Beauty Haul sales event to capture shoppers鈥� attention, boost retail media spend, and drive sales.