POV: The Changing Consumer Behavior Toward CTV

We’re witnessing real-time change in the Connected TV landscape, giving advertisers a chance to capitalize on changing consumer behavior. As Netflix loses subscribers and ad-supported apps like Pluto TV gain, Brkthru sees a big opportunity for our clients.

First, let’s examine the difference between AVOD and SVOD. 

AVOD: Advertising-based Video on Demand is generally free to access. Examples: Pluto, Tubi, and YouTube. AVOD accountsfor 25% of all streaming time.

SVOD: Subscription-based Video on Demand services don’t not rely on advertising for revenue. Examples: Netflix, HBO Max, and Amazon Prime Video. This accounts for 53% of all streaming time.

Most consumers are willing to pay for up to four services at a time. In an effort to lower subscription costs, some services are leaning into ad-supported tiers to lower subscriber costs. Netflix has sped up their timeline to Q4 2022.

Most households own multiple CTV devices, which are often shared. Consumers, who have previously been behind a paywall, now have free access. eMarketer found that 23% of adult CTV viewers purchased a product after seeing an ad, compared to just 12% of traditional TV viewers. This is too big of an opportunity to turn down. At Brkthru, we know you may have big needs on a fixed budget. Talk to us to stay up to speed on the changes with CTV, subscription and advertising models, and learn how CTV can work within your media mix.

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