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Although we don鈥檛 expect any other single service to reach $1 billion in US CTV ad spending in 2023, several will cross that threshold by 2025, including Pluto TV, Tubi, Peacock, and Netflix. Companies not included in our forecast breakout comprise a big chunk of ad revenues. The other connected TV category will draw over $10 billion in 2023 and over $14 billion by 2025.

Traditional pay TV services include cable, satellite, telecom and fiber operators, multiple system operators (MSOs), multichannel video programming distributors (MVPDs), and major TV broadcast and cable networks. Virtual multichannel video programming distributors (vMVPDs) are internet-delivered live TV services (e.g., Hulu + Live TV, Sling TV, YouTube TV).

Time spent on Netflix exceeds Max, Tubi, Peacock, The Roku Channel, Pluto TV, and Apple TV+ combined, per MoffettNathanson. Collective time spent with Hulu, Disney+, ESPN+, and Amazon Prime Video exceeds Netflix by just 11%. Seeking profitability, streamers increase subscription prices. Streaming services were busy increasing subscription prices.

Our latest forecasts for TV and CTV ad spending, as well as those for time spent with each medium, point to CTV鈥檚 inevitable eclipse of its linear counterpart.

Free streaming services: Free streamers like Tubi, Pluto TV, The Roku Channel, and Crackle are gaining viewers. (We include YouTube in our CTV definition. YouTube has subscription offerings, but viewers spend more time on its free service.). Device-makers: Roku, Fire TV, Samsung, Vizio, and LG have built up ad businesses.

Its projected $3.13 billion in ad revenues will represent 86.0% of all US retail media CTV ad spending, though a pending deal by Walmart to acquire TV-maker Vizio could start to have an impact toward the end of the year. And as more retail media ad dollars flow to competitors in CTV in 2025, Amazon鈥檚 share is expected to drop. To view the full forecast, click here.

According to the same survey, 40% of US adults have increased their viewing time on free ad-supported streaming TV (FAST) services in the past year. This year, FAST viewers will reach 100.6 million in the US, marking 4.5% growth YoY, according to our forecast. The Roku Channel claims the largest share of FAST viewers, at 67.4%, followed by Tubi (64.4%) and Pluto TV (57.1%). Use this chart:.

Free ad-supported streaming TV (FAST), such as Pluto TV and Tubi. Ad-supported video-on-demand (AVOD), such as The Roku Channel and ad-supported versions of subscription services like Netflix and Disney+. YouTube, which will have nearly 45% of its viewing time on CTVs. Digital live TV services, such as Hulu + Live TV.

It will exclusively stream on The Roku Channel for a limited period and eventually be available on other platforms such as Pluto TV and Tubi. As part of the deal, Roku will also be exclusively distributing live NBA G League games. Why it matters: Sports leagues are seeking new ways to engage their fans as media usage changes.

In 2022, increases were especially pronounced among ad-supported video on-demand (AVOD) services, with The Roku Channel, Tubi, Pluto TV, Amazon Freevee, and Crackle all adding viewers and continuing to do so through at least 2027. At the same time, other streaming services with ad plans鈥攊ncluding Hulu, Disney+, Paramount+, and Peacock鈥攚ill see net growth in their viewership through 2027.

That will change, both as streamers such as Netflix and Disney+ increase their ad inventory and free ad supported TV (FAST) channels such as Tubi and Pluto TV gain popularity. In 2024, CTV will only account for $0.13 of the US digital ad spend per hour spent with digital per adult, compared with mobile, which accounts for $0.51, according to our 鈥淭ime Spent With Connected Devices 2024 report.

As the TV and streaming landscape becomes increasingly fragmented, the terms used to describe different ways to watch are multiplying. We鈥檝e already broken down the difference between connected TV (CTV) and OTT. With subscription video-on-demand (SVOD) platforms becoming ad-supported SVODs, and ad-supported video on demand (AVOD) platforms building out free ad-supported TV (FAST) platforms, it鈥檚 difficult to keep track of what cord-cutters are actually watching. Here鈥檚 a breakdown.

National brands rely on TV for maximum reach, but the audience is increasingly fragmented across linear and digital services. Ad-supported tiers for streaming are increasing the opportunity to reach viewers on platforms like Netflix and Pluto TV. Think beyond the duopoly. Its share and influence are being challenged by a host of other digital publishers across CTV, social media, and retail media.

While that figure is small by US advertising standards鈥攊t鈥檚 less, for instance, than the amount spent on ads on Pluto TV鈥攊t grew by 40% YoY in 2022. MediaRadar attributes most of the growth to the rise of sports betting apps. In January 2023, almost three-quarters of gambling ads were placed on TV, with most of the remainder going to digital channels, per MediaRadar.

Viewers who choose advertising plans grew 16% between 2023 and 2024, and free ad-supported streaming TV (FAST) services like Pluto and Roku are also climbing steadily, according to our forecast. The shift from linear TV to streaming is causing legacy media giants like Paramount, Warner Bros.

Indeed, Paramount Global has just recently announced plans to merge its UK broadcast channel鈥檚 video-on-demand platform, My5, with its FAST service, Pluto TV, in late 2024. Increased ad inventory in the space will mean more ad dollars flowing into video. Next year will see strong growth in digital video ad spending, helping the overall ad industry out of its economic-induced slump.

On today鈥檚 podcast episode, host Bill Fisher is joined by our analyst Paul Briggs and forecasting writer Ethan Cramer-Flood to examine the size, advertiser opportunity, and competitors in the free ad-supported streaming TV (FAST) service space.

Pluto TV. Portada. Salesforce. Shutterstock. Teads.

Free ad-supported streaming TV (FAST), such as Pluto TV and Tubi. Ad-supported video-on-demand (AVOD), such as The Roku Channel and ad-supported versions of subscription services like Netflix and Disney+. YouTube, which will have nearly 45% of its viewing time on CTVs. Digital live TV services, such as Hulu + Live TV.

You've got small players like Pluto TV, they're smaller than Peacock or Max or Roku Channel or Tubi or whatever, but they're bigger than someone like a Shudder. So I mean, what would you say the definition is there? Ross Benes:. Well, I don't think niche applies to the audience size necessarily. Pluto TV has sports and crime and drama and comedy.

On today's episode, we discuss what to make of the mixed signals surrounding the US ad market, how much the space will grow in 2023, what's driving it, and what's holding it back. "In Other News," we talk about whether Universal Pictures鈥� premium video-on-demand success has reshaped the movie distribution model and what we spend our time watching on our TVs. Tune in to the discussion with our analyst Paul Verna.

On today's podcast episode, we discuss how much time folks are spending with TVs and CTVs, how many ad dollars are going to both, and which of the streaming platforms will make the most from ads going forward. Tune in to the discussion with our analyst Ross Benes.