The Future of Streaming TV Is Ad-Supported

The Future of Streaming TV Is Ad-Supported

Why AVODs are resonating more strongly with viewers and advertisers

Ad-supported streaming is poised to become a dominant channel for many TV watchers. In fact, with cord-cutting on the rise, 3 out of 4 consumers agree that AVODs are a practical alternative to cable and satellite TV. And as ad spending follows viewership, CTV advertising continues to grow, with spending not just coming from linear TV budgets, but from dollars previously earmarked for digital video, social media, out-of-home and traditional media.

These insights come from the latest edition of Tubi’s annual state-of-streaming report, “The Stream 2023: Actionable Audience Insights for Brands.” In particular, the report zeros in on both AVOD viewer behavior and preferences, as well as how advertisers are turning to targeted CTV ads.

Among the key takeaways:

  • Standard ad formats preferred: While streaming services experiment with new ad formats, Tubi found that standard video ads are preferred over emerging formats such as split screen, interactive or QR code ads.
  • Young, diverse audiences are driving AVOD adoption: Tubi in particular saw over 50% growth in young, diverse audiences like A18-34, LGBT, and Black/African American streamers YOY.
  • Elements for viewer satisfaction: Three factors create loyalty on streaming platforms—a good mix of content, effective recommendations and seamless integration.

Get actionable insights on the trends impacting ad-supported streaming. Download the report.

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