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Key clients: Uber, Roku, LinkedIn, Google, Snap. Carat (Dentsu). Established in France in 1968 as a media agency. Acquired by Dentsu in 2013 through its purchase of Carat parent Aegis. Part of Dentsu Media. Key clients: Intel, Pampers, Ikea, Mastercard, Heineken. Havas Media Network (Havas). Media unit of the French holding company.

The news: Connected TV (CTV) manufacturers Roku and Vizio are seeing a significant slowdown in hardware sales, prompting them to turn to advertising to offset declining revenues. The two companies are reportedly selling TV sets and connected devices at a loss in order to maintain sales in a highly saturated market and onboard users to their advertising ecosystems, per Broadband TV News.

CTV ad inventory is sold by streaming services (e.g., Netflix, Disney+), programmatic platforms (e.g., The Trade Desk, FreeWheel), and manufacturers of connected devices and smart TVs (e.g., Roku, Samsung)鈥攏ot to mention countless resellers. This complicates cross-platform measurement. Nielsen鈥檚 analogue panel-based measurement struggled to keep up with audience fragmentation.

Roku ($2.41 billion) and Peacock ($1.15 billion) will round out the providers exceeding the $1 billion CTV ad mark in 2024. Traditional TV remains enormous, and this year it will actually grow a little. Political ad spending, the Summer Olympics, and the enduring strength of live sports will help traditional linear TV stem the bleeding in 2024. But there won鈥檛 be much more good news after this year.

After Amazon and Roku, video game consoles are the most popular CTV device in the US, per Comscore.

The 鈥淛udge Beauty鈥� campaign gained significant traction through a clever partnership with Roku. The beauty brand's connected TV (CTV) strategy yielded impressive results, including 41 million total impressions, a 37% increase in message association, 66,000 website visits through Roku's Brand Showcase, and strong engagement with viewers ages 18 to 29.

But Roku found that engagement was more than 10 times higher when users were prompted to use their remotes rather than scan a QR code, the company鈥檚 director of ad innovation, Peter Hamilton, told Marketing Brew, because people are more comfortable with using their remotes to interact with their TVs. Brands and streamers are also figuring out what types of content are most conducive to purchases.

In 2024, more than 180 million US viewers will turn to ad-supported live video platform (e.g., Pluto TV, Tubi, The Roku Channel) and streaming services (e.g., Netflix, Hulu, Disney+). CTV platforms experimenting with shoppable media already have large ad-supported audiences.

Then the number of streaming services commissioning original shows grew from Netflix and Hulu to include Apple TV+, Disney+, and even free services like The Roku Channel and Tubi. Now there aren鈥檛 any new major streaming services on the horizon. In fact, some streaming services could merge, which would reduce the number of options studios have to sell their content.

Excluding YouTube, three of the top six streaming services with the most ad-supported viewers in 2024 will be FASTs: The Roku Channel, Tubi, and Pluto TV. These services tend to attract casual viewers. None of the FASTs accounted for more than 1.7% of total traditional TV and CTV viewing time, according to February 2024 data from Nielsen鈥檚 The Gauge.

Viewership continues to shift away from linear TV to OTT sources like Netflix, YouTube, Amazon Prime Video, Roku, AppleTV+, Disney+, and Crave (owned by Bell Media). Many of these services offer ad-supported tiers for less expensive viewing. There will be 22.0 million adult CTV viewers in Canada this year, due to greater penetration of smart TVs. CTV is eating into traditional TV ad spending.

Even traditional audio streaming services and CTV platforms, such as Spotify and Roku, have partnered to create image and video ads that play during audio streaming. Chatbots are an untapped source of digital advertising. As genAI empowers voice assistants and captures some search behavior, chatbots could also capture some search advertising dollars.

Instacart expanded its partnership with Roku to give all advertisers access to shoppable ads (with Instacart as the landing destination), home screen ad formats (that again drive shoppers to make purchases on the delivery platform), and the ability to use Instacart鈥檚 first-party data to better target consumers on Roku.

"I have a Roku and I couldn't tell you one company that's advertised on the much-vaunted cityscape screensaver where they serve ads,鈥� our analyst Rahul Chadha said on the podcast. Screensavers, by nature, only surface when users have checked out or left the room, so how much engagement can they actually drive?

Major CTV players like Roku have struck deals with The Trade Desk to broaden their data pools in hopes that even more highly targeted ads will deliver greater revenues. The Trade Desk itself is looking to get into the CTV operating system market, setting it up to have a significant advantage due to its wealth of personal data.

Platforms like Roku are collaborating with partners like DoorDash and Shopify to help viewers purchase directly through their TVs. With this new model, payment and shipping details are prepopulated on the purchase screen via the information already held by the streaming service, and confirmation is sent immediately to the viewer鈥檚 phone or email.

The ecommerce giant鈥檚 launch of ads on Prime Video instantly gave it the largest audience for an ad-supported subscription video service in the US.

By 2027, nearly one-third of the US population will view these services, which include The Roku Channel, Tubi, and Pluto TV (the last two owned by Fox and Paramount Global, respectively). Amazon-owned Freevee is also in the mix. The three we break out in our forecasts鈥�Roku, Pluto TV, and Tubi鈥攁re expected to grow their ad revenues by double digits in 2024. Predictions.

But if regulation limits the ability for data brokers to shuffle user data around the ad ecosystem, CTV platform owners like Amazon and Roku could benefit, restoring some power to their so-called walled gardens. 2. How will regulatory priorities shift? The future of tech regulation, TikTok's potential ban, and the direction of antitrust actions (e.g., Google) hinge on who takes office. If Trump wins.

Likewise, Roku is not in the graphic because we do not break out The Roku Channel in our forecast. The graphic also includes gross ad revenues for YouTube, rather than net ad revenues. Because YouTube shares a substantial portion of its ad revenues with creators, the gross forecast better reflects the scope of its ad business.