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Connected television (CTV) has stood out as the black sheep of the programmatic family for a while, featuring the lowest total ad spend and the trickiest audience tracking of all mediums. Early rumblings in the industry and consumer habits have convinced Genius Monkey for some time that CTV is a slumbering giant, waiting for the right moment to awaken and take the digital ad industry by storm. That day is quickly approaching, and it’s time for advertisers to take note. Let’s look at some updates and check in on the world of OTT/CTV.
Netflix Ad Tier Continues to Soar
In 2022, Netflix released a lower-priced ad-supported tier to their service that had a pretty slow start. Toward the end of its second year, the ad-supported service had about 15 million users, representing about 5% of the total user base. After some sports deals and other exclusive content, things started picking up; January 2024 saw 23 million ad tier streamers, about 9% of the total.
In November 2024, Netflix reported that the ad tier has 70 million subscribers, constituting roughly 25% of the user base. This is a remarkable leap and demonstrates audience acceptance of advertising as part of their streaming entertainment. Commercials worked well for many years through linear TV, and it looks like the same is true with streaming.
Advertisers could originally only purchase Netflix inventory through Microsoft; Genius Monkey users have been buying through this system since the introduction of the ad tier. The rapid growth of ad-supported streaming has prompted the Big Red “N” to not only expand buying opportunities, but even create and release their own advertising platform. Netflix will be transitioning to this as-yet-unnamed service over the course of 2025, and users can rest assured that Genius Monkey will remain at the forefront of the integration.
All these points suggest that Netflix is gearing up to go all-in on ad-supported streaming. A quarter of Netflix’s 282.7 million subscribers use the ad tier today, but what will the ratio look like years from now? 50%, 75%? Will Netflix fully transition into a completely ad-supported service? No matter what the future looks like, the Genius Monkey platform will continue to be the best way to find the best path to placing your ads, because CTV ads aren’t going anywhere.
All-in-One Sports Streaming is Almost Here
Remember that unnamed sports streaming service from Disney, Fox, and Warner Bros Discovery? We now have many more details:
The new service is going to be called Venu (pronounced “venue”) and was due to launch in Fall 2024 at a starting price of $42.99 a month. Everything seemed ready to go, but the launch was blocked by a preliminary injunction! Fubo TV – another sports streaming service – sued the conglomerate, citing the anti-competitive potential of the service.
This week – January 2025 – Disney did what Disney does and basically bought Fubo, acquiring a 70% stake in the company. The current CEO and cofounder of Fubo will remain in control and the entity will continue to exist as a separate service, all while dropping the charges.
The acquisition still requires regulatory approval, but it’s unlikely this announcement would’ve been made if Disney’s lawyers weren’t sure it would go through. Venu is primed for release as the second largest TV streaming service behind YouTube TV.
The promise of Venu is more than a single app for all sports: it’s a chance for less-popular sports and linear services to get more promotional and advertising attention! Genius Monkey suspects that Venu will signal a turning point in sports streaming; if successful, other TV providers will likely begin bundling streaming and linear options, creating an even more diverse inventory for CTV advertisers.
2023 was the year when live sports streaming finally surpassed traditional broadcasting. The future of sports streaming is bright, and Genius Monkey is ready to secure the best inventory for the best prices for our users. Travis Champ, COO, said:
“Genius Monkey has always taken pride in the fact that it has access to all available inventory for CTV/OTV, and our users have recently seen the great opportunities that presents. Just a few weeks ago, we were able to procure a string of premium deals for one particular sporting event being aired on multiple networks, but restrict the ad placement to only a few markets. Traditionally this would be a tall task for advertisers to put together, but the right platform can make it simple.”
CTV is Maturing as a Medium
Leichtman Research reports that 88% of US households have at least one internet-connected TV device. About half (49%) of US adults use these devices daily to watch content. People enjoy using CTV, but the industry surrounding it is still relatively young and messy. The market is changing every day, with new innovations and CTV network entities appearing to potentially shake up the status quo.
Entire agency and marketing teams stay busy keeping with the trends and trying to keep access to the inventory they need. Even little changes in the industry can require a full rework to the supply path, and the modern requirement for better, more complete attribution often necessitates shelling out for tracking software on top of it all. For many teams, it’s too much work, too much money, or both. That’s where a fully-managed platform like Genius Monkey can really make the difference.
Genius Monkey does the leg work of maintaining access to all new inventory, networks, DSPs, direct deals, and more to make sure its users are always able to be where their audience is. The combination of the industry’s largest available inventory, limitless targeting possibilities, and our unique view-through tracking turns CTV into a powerful tool that works particularly well in mid-to-bottom levels of the funnel.
No longer relegated to its own advertising silo, OTT ads now work as part of fully integrated campaigns that can track when and where consumers see advertisers’ messages, no matter the device. The emerging popularity of the medium signals that CTV is growing up, and there’s no better time to make it a part of your programmatic strategy.
Quality over Quantity
Programmatic is already the king of digital advertising, comprising over 90% of the digital ad market in the United States. Modern technology makes it very easy and convenient to place an ad, but increasingly hard to place it well. Instead of arbitrarily placing ads everywhere you can, take the smart approach with the programmatic experts at Genius Monkey.
Our user’s campaigns often show immediate results in website traffic and ad impressions, with even greater increased engagements and lower cost-per-conversion in three to four months. Are you ready to take your programmatic strategy to the next level? Come talk with the Genius Monkeys today!
