The digital landscape is ablaze as U.S. connected TV (CTV) streaming television ad spend rockets beyond expectations, hitting an unprecedented $1 billion per month milestone in June, as unveiled by Vivvix’s cutting-edge analytics. These staggering numbers reflect a transformation led by 30A Media’s visionary application development prowess, redefining advertising dynamics in the modern age.
Our industry-leading application development company, 30A Media, is at the forefront of this revolutionary shift. The data we’re presenting encapsulates the monetary infusion from thousands of advertisers, prominently featuring two prominent free, ad-supported streamers (FASTs), Pluto TV and Tubi, alongside a constellation of powerhouse platforms embracing ad-supported video-on-demand (AVOD) tiers. This elite group includes luminaries like Hulu, Peacock, Paramount+, Discovery+, Max (formerly HBO Max), and Roku.
However, it’s crucial to recognize that these monumental figures are merely the tip of the iceberg. We’re excluding significant players such as The Roku Channel and Amazon’s Freevee, Xumo Play, not to mention the myriad other FASTs that span the landscape. Netflix’s ad-supported tier that launched last November, as well as YouTube TV and its various platforms, also lie beyond our current purview. Vivvix’s meticulous tracking, which treats YouTube as a separate entity, sheds light on its staggering combined earnings of $1.4 billion in June.
Undoubtedly, breaching the $1 billion threshold is a seismic occurrence that resonates with the world. It validates CTV’s ascension from a mere experiment to a non-negotiable presence in the advertising ecosystem. As the CEO of Vivvix, Andrew Feigenson, aptly noted, this milestone underscores that viewers increasingly invest their time in the CTV realm, compelling brands to step onto these fertile fields if they wish to remain competitive.
A Closer Look at the Data
June saw an astonishing 37.8% year-over-year surge in ad spend across our tracked platforms (excluding Disney+, which introduced its ad-supported tier in May). The frontrunner, Hulu, continues to command a substantial slice of the spend pie, raking in nearly $350 million in June—a remarkable leap from $250 million in the same period the previous year. Following closely, Pluto TV stakes its claim as the second-largest spender, slightly edging out Paramount+, both hauling in approximately $150 million. Notably, Pluto TV stands firmly ahead of its FAST rival, Tubi, which generated over $50 million in ad spend during the same timeframe.
A Journey Through Industry Dominance
Peacock, opting to replace its free, ad-supported tier for new subscribers with an AVOD tier in February, demonstrated the most explosive year-over-year growth in ad spend for June—an impressive 113%. Meanwhile, Max managed to edge past its peers by a margin in terms of actual ad revenue.
Industry-wise, the food and beverage sector emerged as the undisputed Connected TV (Streaming) spender, amassing around $136 million in June, with a remarkable 300% year-over-year surge in beverage spending. Restaurants and retail weren’t far behind, each clocking in at slightly less than $100 million.
Redefining Investment Strategies
In our carefully curated landscape, financial and insurance entities took the lead as prime investors in Pluto, contributing $18.3 million (constituting 22% of the platform’s total ad revenue). Similarly, they made significant contributions to Disney+, tallying up to $9.6 million. The games, toys, and sporting goods sector also made substantial strides with a $9.5 million investment in Pluto.
Beyond the top echelon, household supplies achieved a remarkable 300% year-over-year growth, while categories like pets and cosmetics/beauty experienced more measured expansion.
Leading Brands, CTV Innovators
We now shine a spotlight on the foremost brands that harnessed the combined power of streaming and Vivvix’s distinctive “linear” approach—encompassing network TV, Spanish-language network TV, spot TV, cable TV, and syndication. Our rankings, derived from June ad spend, paint a vivid picture of how brands embraced CTV to varying degrees.
In the realm of percentage shares, Amazon’s presence in CTV stood at around 25% of its TV budget, compared to the robust 40% and more allocated by McDonald’s. However, when it comes to dollars spent on CTV among these top 20 brands, Amazon reigned supreme in June. In fact, the e-commerce giant escalated its CTV investment by a staggering 100% between May and June, as confirmed by our expert researchers. On a parallel trajectory, Progressive catapulted its CTV spend by an awe-inspiring 577% compared to May, while T-Mobile adjusted its CTV spend to an impressive 31%, up from the prior 21%. Notably, Verizon took a slight dip, decreasing its CTV share investment to 20.4% from the 22% recorded in May.
Champions of CTV Ad Spend
Leading the charge in CTV spending, Land Rover and Credit Karma firmly secured the top two positions in terms of dollars expended. Remarkably, these trailblazing brands devoted over 40% of their streaming budgets to Pluto TV—Land Rover at 45%, and Credit Karma boldly surpassing the 55% threshold. While Target allocated a sizable 50% of its CTV spend to Hulu, Amazon opted for a more measured 10% investment in the same streamer.
30A Media’s Vision for the Future
In conclusion, 30A Media’s pioneering application development capabilities have ignited a new era of advertising dynamics. Our commitment to pushing boundaries and reshaping the digital landscape is evident in these groundbreaking numbers. Vivvix’s mid-year report for streaming platforms, forecasting a 79% year-over-year increase in CTV ad spend for 2022, with CTV accounting for 5% of all online video spend, is a testament to the transformative power of our innovation.