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Streaming hours on The Roku Channel increased more than 50% in Q2. Among active users, Netflix takes the platform crown, but ad-friendly TikTok, Hulu, and YouTube have better outlooks. Netflix adds 5.9 million subscribers in Q2 thanks to password-sharing changes. How Netflix, Roku, and NBCUniversal are getting into commerce.

As for advertising, Instacart is looking to partnerships with companies like Roku that enable advertisers to use Instacart data to see if consumers bought a product after seeing an ad for it on TV. But it is unclear how many more times it can pull the retail media lever to spur growth.

Spending on CTV: Hulu ($3.63 billion), YouTube ($2.89 billion), and Roku ($2.19 billion) lead the US CTV ad market this year. Don鈥檛 expect that to change right away. Verna said Hulu鈥檚 lead is 鈥渟olid,鈥� likely attributed to how long the platform has operated on an ad-supported model. YouTube is worth watching for CTV advertisers.

Hulu ($3.63 billion), YouTube ($2.89 billion), and Roku ($2.19 billion) are the biggest players for US CTV ad spend, but the market is 鈥渧ery dynamic,鈥� according to Verna. 鈥淲e鈥檙e definitely going to see [Disney+ and Netflix] grow and scale up and eventually get toward the top of the ranking,鈥� he said.

Roku announced it was cutting another 200 jobs as it restructures to entertain a possible takeover. Hulu is reportedly laying off 90% of its Beijing workforce, or 200 employees. Our take: How technology companies enact layoffs and cut costs during economic uncertainty is a yardstick of their management, resilience, and company structure.

Player: Roku. Roku is offering new ad spots on its home screen, in original content, and within its screensaver. Now your ads can experience 鈥渓ife鈥� in Roku City. The company boasts AI that allows brands to insert messages at key content moments, like when Tim Gunn says 鈥渕ake it work鈥� in 鈥淧roject Runway.鈥�. Player: Microsoft. Microsoft announced an API to deliver ads through chat.

He notes that ads on smart TV interfaces are nothing new, with brands like Amazon Roku and Vizio being long-time players in the on-screen ad game. Think Roku's popular Roku City. Ads on budget TV maker screens, we're used to. But now, LG is placing them on screensavers of one of its flagship OLEDs. The question is, can screensaver ads move the needle?

While Amazon has a definite advantage over competitors given the strength of its marketplace and Prime offering, it鈥檚 facing competition from the likes of Roku, Disney, and Walmart鈥攖he latter having quietly paused its live commerce experiments in favor of testing interactive shoppable ads on Peacock.

Walmart is testing shoppable CTV ads via its partnership with Roku. Albertsons has piloted shoppable Facebook and Instagram video ads with Meta. The Fresh Market has created an entire retail media network to experiment with shoppable video, partnering with Firework on shoppable live commerce. 5. Retail media networks need to prove their worth.

Hulu sits at the top with $3.63 billion in CTV ad revenues this year, followed by YouTube ($2.89 billion), and Roku ($2.19 billion), according to our forecast. Verna said that Disney+ and Netflix, which have just recently launched ad-supported tiers, will both be short of a billion dollars in CTV ad revenues this year.

The ad spending winter of 2022 and early 2023 was mild and short-lived, as we predicted. And after a solid H2 2023, things are looking up across the board for 2024.

Streaming consists of ad-supported video on demand (AVOD) like The Roku Channel and Netflix Basic with Ads and subscription video-on-demand (SVOD) like Netflix. An increasing number of platforms are adopting a combined model in the form of ad-supported SVOD. FAST: TV content delivered via the internet that viewers do not need to pay for, including Pluto TV, The Roku Channel, and Tubi.

Ad spend will be boosted by new ad-supported subscription tiers and strong legacy players like Hulu, YouTube, and Roku. 鈥淲e鈥檙e seeing early signs of recovery in the digital ad market, but we鈥檙e not out of the woods just yet,鈥� said our analyst Evelyn Mitchell-Wolf. 鈥淲e expect advertisers to continue prioritizing channels with measurable contributions to revenues.鈥�.

In 2019, Roku, Hulu, and YouTube made up about half (45.9%) of the US CTV ad market. Now, they鈥檙e down to about one-third. What鈥檚 changed? Netflix, Disney+, and HBO Max have jumped into the deep end of CTV ad spend. Amazon is hanging out there too, with ads on Freevee and live sports. And social video has expanded, with TikTok eyeing CTV formats.

Yet, the biggest discounts and easiest ways to scale are to buy through external DSPs, operating systems, or original equipment manufacturers, such as Roku, Amazon Fire or Vizio. Diversifying CTV ad dollars not only helps manage frequency, but also allows advertisers to reach potential viewers by expanding their presence across more programs.

Roku is negotiating with Major League Baseball for exclusivity on some games and is teaming up with the NBA on a free ad-supported streaming (FAST) offering. ESPN, Amazon, and Warner Bros. Discovery are negotiating for NBA streaming rights. Fox, Warner Bros.

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.

The largest shares will go to Hulu (13.8%), YouTube (11.7%), and Roku (9.5%), but the long tail of 鈥渙ther鈥� will dominate with 42.1% of the pie. Sub OTT CTV ad spending will increase 49.6% this year鈥攖hanks largely to newcomers Disney+ and Netflix鈥攆or a total of $8.04 billion. But this figure will also be divided into numerous small slices by the many SVODs that have ad tiers.

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:. Evaluate CTV advertising spend. Balance SVOD and FAST investments. More like this:. How many ad breaks are acceptable from FASTs? YouTube is the most popular free video service across all generations.

As of this year, more than 100 million people in the US are FAST viewers, with The Roku Channel being the most popular platform, according to our forecast. As FASTs become more popular and connected TV ad spend rises, viewers could grow fatigued with an overwhelming number of ads. Use this chart:. Evaluate optimal ad loads. Assess viewer comfort with FASTs. More like this:.

And we expect that streaming companies will face increasing competition for those ad dollars, as the money once tied up with Hulu, Roku, and YouTube trickles to other streamers. More like this:. Report: Q4 2022 Digital Video Trends. Article: Netflix鈥檚 SAG Awards livestream is another step toward head-to-head competition with broadcasters. Article: Video trends to watch in 2023.

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. Mobile remains the king of digital advertising, largely due to its diversity of content.

In February, The Roku Channel and Jellysmack partnered to launch two FAST channels featuring 17 creators, for example. Combined with the rise of episodic content and creator-owned media, such channels will further fragment already divided viewer attention and heighten the competition for audiences, ad dollars, and subscription revenues. There is a potential upside for TV and video providers.

In order to stay competitive, Instacart is forming partnerships with companies like Roku, which enables advertisers to use Instacart data to see if consumers bought a product after seeing an ad for it on TV. Our view: The health of Instacart鈥檚 ad business depends on the success of its delivery business.