The majority of streamers in the United States are watching at least some of their shows, movies and other videos through advertising-based products, according to a new research paper released by Parks Associates this week.
The paper examined the popularity of ad-supported streaming services in American homes, and discussed how marketers can tap into the opportunities presented by interactive ad formats as more Americans use ad-supported video services.
Four out of five Americans are now streaming content with ads through a combination of free video platforms and premium, subscription-based services, the Parks Associates report revealed. Fifty-nine percent of Americans subscribe to an ad-based tier of a streaming video service like Netflix, Prime Video, Disney Plus or Peacock, while another 47 percent say they stream ad-based content from free platforms like Tubi, Pluto TV and The Roku Channel.
While cable and satellite platforms continue to experience high churn, streaming cable-like alternatives are offering ways for Americans to watch live content like news and sports without bloated packages. Nearly one out of four Americans have a streaming cable alternative like YouTube TV, Hulu with Live TV or Philo, Parks Associates found.
All told, Parks Associates projects more than 278 million Americans will use subscription-based, ad-supported video products by 2029, and around 250 million will use free streaming services supported by ads. By comparison, around 200 million used ad-supported subscription streaming services and nearly 150 million watched free streaming video with ads last year.
The three different types of streaming video platforms — free, premium and cable-like services — use connected TV ad formats that open the door for opportunities across viewer engagement, to include interactive shopping from smart TVs, phones and tablets.
“Industry players can take productive steps today to advance the interactive TV experience for viewers and advertisers by connecting workflows, making effective use of available data, and optimizing user experience elements for interactivity,” Jennifer Kent, the Vice President of Research at Parks Associates, said in a statement. “Success involves building sustainable, scalable solutions for the long term rather than quick, band-aid solutions that address only immediate challenges.”
The research paper, “Interactive & Shoppable TV: Next Wave of CTV Revenues,” is available to download by clicking or tapping here. Highlights from the paper will be discussed during the Future of Video: Business of Streaming conference in mid-November.
