The State of Streaming: What Advertisers Need To Know

Streaming has transformed the way we watch TV — and the way advertisers connect with audiences. It’s no longer just an up-and-coming channel, it’s the primary method of television and movie consumption for millions of viewers around the world. 

Whether you’re new to Connected TV (CTV) advertising or just looking for a refresher, this article will help get you up to speed on where the streaming industry stands today, what challenges lie ahead, and where this growing channel is going next. 

The Streaming Era is Now

Streaming isn’t the “future of TV” anymore — for many people, it is TV.

Today, nearly 90% of U.S. households with streaming capabilities actively watch CTV content. Most households are using an average of 3.9 streaming apps, and toggle between favorites like Netflix, Disney+, Hulu, Peacock, and Amazon Prime Video, along with a growing roster of free, ad-supported services (FASTs). In fact, 46% of TV viewers now say that streaming platforms are their primary way to watch television, up from just 35% in 2021.

Connected TV viewing time has exploded thanks to this shift. Average daily CTV consumption has nearly doubled — jumping from 1 hour and 22 minutes per day in the early days of streaming in 2020, to a projected 2 hours and 37 minutes by 2026. 

And viewers aren’t just streaming more, they’re enjoying it more, too. Nearly 80% of streaming subscribers are happy with the content they’re watching — and as streaming platforms continue to diversify their libraries with exclusive series, live sports, original films, and niche programming, audiences are finding more of what they want to watch, when they want to watch.

Advertisers Are Following Their Audiences

When audiences move, savvy advertisers move with them. Connected TV ad spending is projected to grow by 15.8%, reaching $33.4 billion by the end of 2025 — and shows no signs of slowing down. By 2028, EMARKETER projects that CTV ad spend will hit $46.89 billion, officially outpacing traditional TV ad spend for the first time. 

Brands are increasingly attracted to CTV not just because it’s where viewers are — it’s also because of the channel’s powerful advertising capabilities. Unlike linear TV, CTV offers measurable outcomes, more control over frequency and creative delivery, and precision targeting based on factors like demographics and behavior.

In fact, 61% of advertisers say they plan to increase their CTV ad budgets in the coming year to capitalize on those advantages. For brands of all sizes, it’s a chance to meet consumers where they’re engaged, attentive, and ready to act. 

The Challenges Ahead

Of course, CTV’s rapid growth has come with a few growing pains for advertisers and consumers alike:

For Consumers: Subscription Fatigue

WIth more and more streaming services flooding the market, consumers can feel overwhelmed (not to mention financially strained). In fact, 57% of households agree that there are too many streaming options to choose from. As a result, nearly half (47%) of households say they have subscribed to and canceled a streaming service in the last year, driven by a need to cut household expenses (32%), or simply because they felt there wasn’t enough worthwhile content to justify the cost (22%). 

So while subscription video-on-demand (SVOD) subscriptions still grew by 10.4% in 2024, reaching just over 260 million total subscriptions, the rate of cancellations has also increased — reaching 15.8% versus 11.6% in the previous year. 

This cost-conscious mindset is instead driving many consumers towards ad-supported options. Ad-supported subscriptions accounted for 45% of all streaming subscriptions in 2024, up from 36% in 2023, and well over half of consumers say they now choose an ad-supported tier when offered. 

The emergence of “bundles” (think the Disney+, Hulu, and Max combo package) is helping mitigate costs, as well — making it more affordable to access multiple services at once. But managing content across platforms still remains a point of friction for many households.

For Advertisers: Fragmentation Frustration

Brands trying to reach audiences across this sprawling landscape may also face challenges stemming from increased fragmentation:

• 39% of advertisers cite ad transparency issues due to the fragmentation of the market.
• 37% report difficulties managing ad frequency across different publishers — increasing the risk of overexposing audiences or wasting impressions.
• And 41% highlight challenges with tracking key marketing metrics, making it harder to measure and optimize campaign performance.

In short: while Connected TV offers powerful tools for targeting and measurement, advertisers still need sophisticated strategies and the right CTV advertising partner to navigate this fragmented and rapidly evolving environment. 

What’s Next? The Three Big Stories to Watch

Despite these challenges, the world of streaming isn’t slowing down. Here’s what’s shaping CTV’s next chapter. 

#1 AI, Automation, and the Rise of Shoppable TV

Artificial intelligence is fundamentally changing the way CTV campaigns are planned, targeted, and optimized. AI on Connected TV can now:

• Predict the best audiences for your ad based on real-time behavioral data.
• Dynamically adjust creative messaging based on who’s watching.
• Optimize media buys on the fly to maximize outcomes. 

Meanwhile, shoppable TV is quickly emerging as a game-changer for both brands and viewers. Advertisers can now transform traditional video ads into interactive experiences, allowing viewers to click, scan a QR code, or even complete purchases directly from their TV screens. This fusion of entertainment and e-commerce redefines what a “TV ad” can be — turning a passive viewing experience into an active, shoppable moment.

#2 The Rise of FASTs

As FAST platforms like Pluto TV and Tubi gain traction among viewers, they’re becoming a central part of how audiences engage with TV. We already covered that consumers are looking for ways to trim costs without sacrificing on their entertainment, and FAST channels are helping to fill that gap.

For advertisers, this growth means even greater opportunities on the horizon: FAST platforms offer access to increasingly large, highly engaged audiences, and often at a lower cost than traditional subscription-based services. As more viewers embrace ad-supported CTV, brands that invest in FAST inventory are positioned to reach consumers where they’re actively choosing to spend their time. 

#3 B2B and Small Business on Connected TV

TV advertising was once the domain of only the biggest B2C brands with the deepest pockets — but Connected TV is changing that. Today, B2B brands and small businesses are increasingly turning to CTV to reach their audiences in smarter, more cost-effective ways.

Improved targeting now makes it possible to reach niche audiences (like decision-makers and specific professional segments) without wasting spend on broad, untargeted buys. Meanwhile, as more inventory opens up through the rise of FASTs and ad-supported tiers, CTV is becoming an even more reasonable and attractive option for these brands. These lower minimum buys and the rise of self-serve platforms have made CTV far more accessible than traditional TV ever was — allowing smaller advertisers to launch campaigns without massive upfront investments. 

The robust measurement capabilities on CTV also mean that advertisers can finally tie their TV campaigns to real performance outcomes like lead generation and revenue — a must-have for B2B and small business marketers who need to prove ROI quickly. Just as importantly, CTV also offers strong brand safety, giving advertisers confidence that their ads are appearing alongside premium, vetted content.

The Bottom Line

The Connected TV landscape is no longer the “next big thing.” It’s here, and it’s reshaping the way people watch, engage, and shop. As audiences continue to shift their attention towards streaming, the brands that meet them there with smart, scalable strategies will be the ones that succeed.

For advertisers, CTV offers more than just access to modern audiences — it delivers the precision, brand safety, and performance insights that the modern market demands. So whether you’re a household name or a small business looking to scale, the opportunity to make an impact on the biggest screen in the house has never been more within reach.