Streaming platforms have room to boost ad revenues, says research firm
Ad-supported connected TV (CTV) video services could generate an average of $0. 21 per hour of viewing if every available advertising slot were sold, according to a new report from Omdia, establishing a new monetisation benchmark across the ad-supported streaming sector. The report found that the benchmark applies across Hybrid Video…
Ad-supported connected TV (CTV) video servicescould generate an average of$0. 21 per hour of viewingif every available advertising slot were sold, according to a new report fromOmdia, establishing a newmonetisation benchmarkacross the ad-supported streaming sector. The report found that the benchmark applies across Hybrid Video on Demand (HVOD) services offering lower-cost advertising-supported subscriptions, Advertising Video on Demand (AVOD), Free Ad-Supported Streaming TV (FAST) and Broadcaster Video on Demand (BVOD) platforms. Omdia said the industry is currently operating atjust 65 per cent of its commercial capacityandonly 32 per cent of the maximum regulatory advertising capacitypermitted for traditional broadcast linear television, indicating thatrevenues could increase by two to three timesif hourly advertising volumes expanded and all available inventory was sold. The benchmark was calculated usingcurrent video advertising loadsacross CTV streaming services operating inAustralia, Brazil, Canada, France, Germany, Mexico, the United Kingdom and the United Statesduring2025. “Measuring success in the CTV streaming market has never been more important,” saidMatthew Bailey, Senior Principal Analyst for Advertising at Omdia. “Remarkably, theconsistency of the $0. 21 per hour of viewing benchmarkacross all types of video services is particularly notable, despite substantial differences inadvertising loads,cost-per-mille (CPM)andaudience characteristics,” he added. “Understanding how theseKPIsrelate to one another will be critical forCTV playerslooking to grow and drivelong-term value,” Bailey explained. The report also pointed to a number ofstructural challengesacross the CTV advertising ecosystem, including the need forharmonised measurement standards,closer regulatory alignmentwith traditional broadcast television and thegrowing dominance of US-based companiesin the global television and CTV advertising market. It also identified a significantmonetisation gapbetween the United States and international markets. According to Omdia, the US market commandsadvertising premiums of around 30 per cent higherthan comparable markets elsewhere for advertising placements, reflecting itslarger market sizeandgreater production investment. By contrast, some markets outside the United States face additional obstacles, includinglower purchasing power parity (PPP),regulatory restrictionsand tensions betweencommercial broadcasting objectivesandpublic service broadcasting requirements. “Ad-light HVOD services includingNetflix, Amazon Prime Video and Disney+ have the greatest managed growth potential,” said Laura Chaibi, Consultant and CTV and TV Streaming Advertising subject matter expert at Omdia. “However, reaching the$0. 21 hour of viewing benchmarkrequires foundational work, includinggrowing the advertiser baseto maximizeadvertising fill ratesand improvingadvertising context protocols,” Chaibi explained. “Amore level playing fieldfor local and national TV broadcasters and global CTV streaming players is also needed to mitigate thetwo-tier TV and video advertising modelcurrently in place,” she added. The research concluded thatgreater collaborationacross the industry will be essential to establishreliable cross-platform measurement standards, encourageinnovation in advertising modelsand helplocal broadcasterscompete more effectively with global streaming companies.