Streaming services advertising in the United States - statistics & facts

The landscape of streaming services in the United States has experienced a transformative shift, with the rise of ad-supported models, particularly in the realms of over-the-top (OTT) advertising, podcasting, and free ad-supported streaming TV (FAST), challenging traditional advertising strategies and reshaping consumer preferences. Over-the-top (OTT) advertising is emerging as a prominent and increasingly preferred solution for advertisers. In 2023, OTT TV and video revenue was forecast to reach 74 billion U.S. dollars in the U.S. On the audio side, music streaming revenue has increased greatly, growing from 1.9 billion U.S. dollars in 2014 to 13.3 billion in 2022. When streaming services first entered the market, a key attraction was the removal of the advertising experience. This reshaped the media industry and provided consumers with an entirely new, on-demand experience. However, streaming companies are now integrating advertisements into their products in their quest to increase revenue.

AVOD and FAST are making plenty of leaps

As of the second quarter of 2022, The Roku Channel was the most favored ad-supported video-on-demand (AVOD) service in the U.S. and Canada. Hulu was the leading platform for upfront spending allocation among U.S. marketers in 2023. The swift growth of FAST in the U.S. has garnered heightened attention from marketers, progressively acknowledging the significance of these platforms. There has been a remarkable year-on-year surge in advertising spending on FAST in the U.S., escalating nearly fourfold from 2020 to 2023. Projections indicate that FAST ad spending is anticipated to double again between 2023 and 2025, surpassing the expenditures on cable, broadcast, and subscription video-on-demand (SVOD) services by the latter part of 2025.

Podcast advertising is elevating the audio market to new heights

In 2022, the expenditure on digital audio advertising in the U.S. reached 5.9 billion U.S. dollars, marking an increase from 4.9 billion the previous year. Spending on podcast advertising has witnessed robust double-digit growth, poised to achieve an estimated value of 2.56 billion dollars by 2024. Concurrently, the proportion of podcast advertising within digital radio ad spending was anticipated to double from 2019 to 2023. Despite its growing presence in consumers' daily lives, in 2022, online audio remained the most under-invested media in the U.S. This indicates that its portion of consumers' media time is considerably more significant than its advertising revenue share.

Consumers are increasingly veering towards ad-supported streaming services

With streaming companies increasingly resorting to advertising as revenue, consumers may find themselves in the same situation they initially sought to escape – dealing with commercial breaks they wanted to avoid. More and more consumers have been cutting down their entertainment expenses due to concerns about economic hardship. As a result, one-third of Americans said they preferred free ad-supported streaming content rather than paying not to see ads. Pre-roll ads – ads taking place before the content – were the most popular video streaming ad type, with more than half of consumers stating they favored them. Streaming ads were more effective than their cable or broadcast TV counterparts regarding retention among younger consumers, with almost half of Gen Z users saying they were receptive to them. Younger audiences’ receptiveness to streaming ads appears to be a good omen for the industry, and a sign for advertisers to keep focusing on personalization to reach as many people as possible.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
Published by Michele Majidi, Dec 13, 2023

Key insights

Over-the-top (OTT) TV and video revenue in the U.S.
74bn USD
Digital audio ad spending in the U.S.
7bn USD
FAST ad spending in the U.S.
15.6bn USD
Get more insights

Editor’s Picks Current statistics on this topic

Advertising revenue of free ad-supported streaming TV (FAST) services in the United States from 2019 to 2025 (in billion U.S. dollars)

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Digital audio advertising spending in the United States from 2016 to 2023 (in billion U.S. dollars)

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Digital audio ad spend in the U.S. 2016-2023

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