All's Well that Streams Well

The shift from SVOD (Subscription Video on Demand) to AVOD (Ad-supported Video on Demand) is gaining steam. Over the last two years, the U.S. has seen a 29% increase in households streaming AVOD, compared to only a 21% increase in SVOD. On the corporate front, high-profile advertising deals like those recently inked between Disney+ and The Trade Desk or Netflix and Microsoft highlight the same transition toward ad-supported business models.

This move toward ad-supported streaming dovetails with a longer-term trend of "cord-cutting" among linear TV viewers. In fact, "cord-cutters" and "cord-nevers" will soon outnumber paid (cable, satellite, or telecom) TV viewers. This means that there will be more users than ever before viewing CTV programming, and more advertising inventory available to reach them.

These changes to the streaming landscape are set to allay some of the more common concerns among small and midsize advertisers by lowering costs, growing premium inventory offerings, and strengthening existing reporting options. For any marketer running online video or linear TV campaigns, it's a great time to explore CTV and prepare for the shift to ad-supported streaming.