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Roku debuted sponsored ad space on its iconic Roku City screensaver last year, and more CTV apps and manufacturers have started implementing 鈥渋dle鈥� ads on screensavers and paused content. But the new ad format shows how CTV platforms are racing to increase ad space and variety as more spending floods to the channel.

Roku. The Conference Board.

Roku: Roku has become the most widely used streaming interface in the US, with 122.3 million viewers in 2023. Its streaming service, The Roku Channel, has developed more originals after years of exclusively relying on licensed content. Roku has felt pressure like many others in the streaming space, with depressed holiday sales and layoffs.

The under-wraps operation would give The Trade Desk a much more active role in the CTV marketplace, positioning it against other CTV platforms like Roku and Amazon and setting a standard that removes intermediaries from the ad buying process.

The Roku Channel is projected to lead the US FAST landscape with 83.4 million viewers; Tubi follows closely with 74.6 million. The FAST trend extends beyond the US: FAST revenues in Europe have jumped from $140.6 billion in 2020 to $389.9 billion in 2022 and are projected to reach $600.6 billion this year. Our take: FAST services are becoming critical for consumers and advertisers alike.

Plus, a Roku survey from last year found that primary care doctors (a key audience for pharma advertisers) are increasingly cutting the cable cord in favor of streaming TV. 3. Search. Some 97% of marketers will either increase (51%) or keep (46%) their search ad spending.

This group engaged with a Microsoft Audience Ad 18 days after seeing a Roku TV streaming ad. 鈥渆veryday viewers鈥� were exposed to one Roku TV streaming ad on average and used three distinct terms while searching. 鈥淚mpressionable viewers鈥� engaged with a Microsoft Audience Ad 36 days after being exposed to a Roku TV streaming ad.

Unlike a similar shoppable initiative between Walmart and Roku, which required watchers to pause their shows to make a purchase from their TVs, Paramount鈥檚 goal is to offer a 鈥渃omplete lack of friction,鈥� Halley told CNBC, and make the act of browsing (or purchasing) an extension of viewers鈥� existing behaviors.

But because some CTV display placements are sold by device manufacturers (e.g., Samsung, LG, Roku) and ad tech partners (e.g., The Trade Desk, Microsoft, FreeWheel), most streamers are categorized as open web under our definition. One notable exception: YouTube, which will represent about a third of programmatic CTV ad spending this year.

CTV and retail media also grew, with Roku and Walmart showing strong gains, though competition remains fierce.

Walmart and Roku, TikTok, and Snap. Walmart鈥檚 retail media network, Walmart Connect, is partnering with Roku, TikTok, and Snap to expand its reach and better measure how social media and CTV ads influence consumers鈥� purchase decisions.

Previously lesser-known free services like The Roku Channel, Tubi, and Pluto TV have also surged past the 50 million viewer mark in short order. Even Freevee and Crackle鈥攑latforms with limited name recognition鈥攈ave tens of millions of viewers. Partnerships, bundling, and sports drive growth. Paramount+ and ESPN+ will set the pace among subscription video-on-demand (SVOD) services.

Instacart and Roku announced a streaming and delivery partnership this week, part of an ongoing trend of connected TV (CTV) merging with retail media. The Kroger Co. and The Walt Disney Co. have an advertising deal. Albertsons Companies is in business with Omnicom Media Group. Walmart is working with Roku, TikTok, and Snap.

That makes it the market leader, ahead of YouTube ($2.89 billion) and Roku ($2.19 billion). 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.

Most crucially, Amazon Prime Video reported it will introduce ads in 2024, Walmart and NBCU announced a partnership, Roku inked a deal with Best Buy, and Kroger linked up with Disney. CTV ad spending will be nearly twice what we expected for 2025.

Services like Amazon's Freevee, Pluto, Tubi, and Roku have all experienced significant growth, making the Google TV network a timely addition for advertisers seeking to capitalize on this shift. Why it matters: The Google TV network offers numerous benefits for advertisers, including access to a large and diverse audience at a lower cost.

Nearly 6 in 10 Roku viewers have paused an ad to shop a product online, according to Roku鈥檚 internal data. Now imagine if they didn鈥檛 have to hit the pause button in order to make a purchase. Shoppable media makes this possible by providing an opportunity for consumers to make a purchase from a platform they wouldn鈥檛 normally, like TV.

For the 鈥�24-鈥�25 season, the Big Data + Panel stream has been enhanced to include Comcast data (in addition to DISH, DirecTV, Roku and Vizio).

Its marketing team also decided to try something new鈥攖he bank partnered with Roku to produce an original series showcasing women entrepreneurs. Ally watches its marketing analytics closely and found that consumers who saw its branded campaigns last year were six times more likely to open an account.

Netflix鈥檚 ad revenues grew faster than those of YouTube and Roku in Q2 2024. Netflix鈥檚 ad revenue growth has accelerated quarter-over-quarter for the past year while its competition fluctuates. Though, it鈥檚 important to note Netflix started from a smaller ad revenue base than its competitors, so high growth requires a smaller increase in ad spend.

The halo effect of that event helped Tubi surpass its head-to-head rival Pluto TV to earn second place among free premium video streaming services in 2022, behind market leader The Roku Channel. We expect Tubi to stay ahead of Pluto TV in 2023 and for the remainder of our forecast period, through 2027. Paramount+ hits a new peak.

For the 2024鈥�2025 TV season in the US, we have enhanced our Big Data + Panel stream to include Comcast data, in addition to DISH, DirecTV, Roku, and Vizio. Both our Big Data + Panel and National TV Panel measurement data will be available for the upcoming TV season. And with two views of the US audience for every Nielsen-measured telecast in 2023, we inevitably see some differences.

CTV represented a high 40% share of the company's business in Q2, CFO Laura Schenkein noted, thanks to deals like ones signed with Disney and Roku to make streaming inventory available programmatically.

This came after several successful connected TV and digital partnerships, including with Roku and TikTok, as well as data integration with its Walmart+ partner Paramount+. Most recently, Walmart announced 鈥淪hop the Moment,鈥� a partnership with Peacock and Bravo that turns a handful of 鈥淏elow Deck Mediterranean鈥� shows into shoppable episodes. Predictions.