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Roku wants to open the CTV door for small and midsize brands: A partnership will allow brands to repurpose ads designed for social media to run on its platform.

US streamers will see $66.23 billion in OTT subscription revenues this year, per our December 2023 forecast. Most of that money will come from the biggest players—Netflix, Disney+, Hulu, YouTube, and Paramount+—but over a third ($22.91 billion) will come from other streamers. This potential subscription and ad revenue are why brands like Chick-fil-A and the Dallas Stars NHL team are launching their own streaming services. Here are the driving forces behind the growth of these niche platforms.

Catch up on how FAST services are shaking up TV advertising.

CTV manufacturers don’t mind selling at a loss: High market penetration leads Vizio and others to turn to advertising’s lucrative potential.

Connected TV is no longer a niche ad channel—it’s the new normal. With streaming platforms adding ad-supported tiers and Amazon flooding the market with inventory, CPMs are dropping while ad opportunities expand.

By 2026, nine streaming services will generate over $1 billion in ad revenue, up from just two in 2020, according to Ä¢¹½AV’s forecast. To build that revenue, players across the connected TV (CTV) space are eyeing more ad dollars, which will have a significant effect on marketing budgets and consumer experiences.

The smartphone remains Gen Z’s favorite device, as it’s the quickest way to access digital video and social media. But adoption of CTV and VR continues to rise.

´¡³¾²¹³ú´Ç²Ô’s OTT ad revenues are a small but increasingly important part of the story. Ad revenues from Twitch, Freevee, Prime Video, and the Fire TV platform will total $4.72 billion this year, up 84.4% from 2023.

Platforms like TikTok, YouTube, and connected TV (CTV) are all competing for marketing spend. Without clear KPIs, marketers lack an understanding of—and the ability to communicate with leadership about—how campaigns are performing and where they should invest digital video marketing money.