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CTV ad spending is expanding because more services have adopted ads, streaming services have increased their ad loads, and people continue to spend more time streaming. Not too long ago, HBO, Netflix, and Disney+ featured no advertising. Now they all have ads. And some of the most popular ad-supported streamers, like Hulu, have increased their ad loads in recent years.

Netflix is one of many players adapting its tactics, clamping down on password sharing and nudging users toward its cheaper, ad-supported tier, in an effort to boost its subscriber base and revenues鈥攅specially since ad-supported streaming yields higher ARPUs for the streaming giant.

As ad-supported streaming becomes the new normal, this will change. 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.

Disney+ gets out in front of Netflix: When it comes to launching and announcing pricing for its ad-supported tier, that is.

As streaming prices ascend, focus shifts to ad-supported tiers: All eyes on maximizing ARPU versus user growth.

The first was the removal of Netflix Basic, the company鈥檚 cheapest ad-supported tier, in the US and UK. The second was that Netflix鈥檚 ad-supported tier has hit 1.5 million subscribers, according to The Information. The removal of Netflix Basic now looks like a move to soften the blow of worse-than-expected Q2 revenues.

The way advertisers think about TV is changing as it shifts from linear to ad-supported streaming. Here are three developments shaping TV ad measurement, streaming behaviors, and consumer targeting.

On today's episode, we discuss when people are most likely to boycott a brand, whether folks will shop elsewhere if they are charged for returns, where the NBA will live next season, if an ad-supported tier for Amazon Prime Video will work, how much vacation time people take in the US versus other countries, and more. Tune in to the discussion with our forecasting writer Ethan Cramer-Flood and analysts Ross Benes and Paul Verna.

This year鈥檚 upfronts have been unusual, with the haze of the Writers Guild of America strike and a decisive shift toward streaming. From YouTube鈥檚 mixed messages to Netflix鈥檚 ad-supported tier鈥檚 less-than-impressive beginning, here are five trends pinpointed by our analyst.

On today's episode, we discuss what's going on with Netflix's ad-supported tier, what its plans to crack down on password sharing could do to viewership, and what Netflix's subscriber growth will look like over the next few years. "In Other News," we talk about fuboTV's current position in the market and what people stream the most on their TVs. Tune in to the discussion with our analyst Paul Verna.

On today's episode, we discuss what to make of Netflix's subscriber turnaround, how we expect its new ad-supported tier to perform, and how effective we think its new "sharing policy" will be next year. "In Other News," we talk about where Peacock sits within the streaming universe and why streaming viewers are so unhappy with ads. Tune in to the discussion with our analyst Ross Benes.

The future of streaming will be ad-supported, more selective, and will involve social video even more. This was originally featured in the eMarketer Daily newsletter. For more marketing insights, statistics, and trends, subscribe here.

Connected TV (CTV) ad spend will exceed $30 billion in the US next year, according to our forecast. At a growth rate of 22.4% YoY, that makes CTV one of the fastest-growing ad formats we track. But where those ad dollars are coming from isn鈥檛 so simple.

While the platform鈥檚 ad-supported tier gains momentum, Netflix needs to beef up its targeting capabilities to win advertisers over. Meanwhile, viewers may be turned off by a heavy ad load and a crackdown on password sharing. But global growth shows promise for Netflix鈥檚 future.

With an ad-supported tier on the horizon, originals will offer Netflix more ad placements and control than licensed content could. More like this:. Report: Media and Entertainment Ad Spending 2022. Article: 鈥楧isney Prime鈥� could be on the way as the entertainment giant pursues a membership offering. Article: Is the value of a Netflix subscription diminishing?

Netflix needs new (and some existing) viewers to think of it as an ad-supported platform. The platform needs to build and grow relationships with advertisers and agencies that didn鈥檛 exist before. And it needs to develop its partnership with Microsoft, which is still in its infancy. Netflix鈥檚 recent appointment of Greg Peters as co-CEO alongside Ted Sarandos indicates the platform鈥檚 ad focus.

The ongoing Hollywood strikes and a rise in free ad-supported TV (FAST) services have forced companies like Disney to adjust their pricing and content strategies accordingly. Consumers will continue to prioritize which streaming services they maintain and which they let go. This creates a competitive landscape where streaming platforms vie to be the 鈥渃hosen ones.鈥�.

Beyond the chart: Netflix鈥檚 ad-supported tier launches today in 12 countries including the US. With 4 to 5 minutes of ads per hour, and at 15 or 30 seconds per ad, the new 鈥淏asic with Ads鈥� tier offers a substantial number of placement opportunities for advertisers that get in on the ground floor.

Almost half of frequent Netflix users are interested in an ad-supported tier, according to a May Morning Consult survey. Netflix has set up infrastructure to capitalize on interested viewers.

The news: Netflix has announced that it鈥檚 bringing on DoubleVerify and Integral Ad Science as third-party measurement partners for its upcoming ad-supported tier, which is expected to launch sometime in November.

Prime Video鈥檚 ad-supported strategy could be a factor. Rather than introducing a cheaper ad-supported tier 脿 la Disney and Netflix, Amazon is making ad-supported viewing the default for Prime Video and will charge an extra $2.99 monthly to avoid ads rather than trying to entice longtime ad-free subscribers to make the switch.

Prime Video needs a hit: Amazon made an aggressive push into the video advertising market early this year when it made ad-supported viewing the default tier for Prime Video. That change gave Prime Video the largest audience for an ad-supported subscription video service in the US, but it will take more than flipping the switch to ensure success.

Last week, YouTube reported that ad revenues were up 13% YoY to $8.7 billion and connected TV (CTV) views grew 130%, demonstrating the platform鈥檚 massive potential for advertisers. Between Shorts, YouTube鈥檚 flagship short videos that competes with TikTok and Instagram Reels, and its foray into CTV, YouTube is central to digital advertising. Here are five charts demonstrating just how big YouTube鈥檚 reach is.

YouTube鈥檚 ad frequency capping solution should help campaign ROI: The video giant cites data suggesting advertisers can earn better returns by showing fewer ads.

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.