The Future of Advertising is Streaming and Advertisers Know it

n the highly competitive entertainment sector, service providers and platform players battle for dollars through subscriptions, advertising, premium content, and bundles. Streaming is the leading choice for video entertainment today; 88% of US internet households subscribe to at least one OTT service while 43% still subscribe to a traditional pay-TV service. Households are choosing FAST and ad-based streaming services as a complement to their SVOD content. SVOD may have reached a saturation point and services are seeking revenue through ads in their content.

The adoption of free ad-based streaming content continues to dominate the industry as services quickly fire up FAST platforms and ad-based tiers. The adoption of ad-based services in consumers’ homes has seen a 22% increase in less than 4 years.

The rise in adoption has led to a rise in advertising and the need by the media companies to show why they need to advertise with their service and not the competition. This need to convince advertisers to advertise is the very essence of the upfront season. Parks Associates anticipates more premium ads in streaming in 2024-25 and the development of more AdTech to help brands reach the right customer.

Parks Associates research extensively covers the video distribution industries, including pay-tv services and streaming. For more information, visit www.parksassociates.com or contact me or any of our team. Thank you for your support by reading and sharing our research!