Analyst firm Omdia has released a benchmark study reporting that ad-supported CTV services have an average monetization potential of $0.21 per viewing hour at full capacity. The report evaluates current industry performance, noting that services are only operating at 65% of commercial ad capacity and highlights regional monetization gaps between the US and international markets.
This $0.21 benchmark provides a standardized KPI for evaluating hybrid and free streaming models, highlighting a massive inventory surplus that platforms have yet to monetize. For engineers and ad-tech strategists, the immediate challenge shifts from acquiring reach to optimizing fill rates and contextual protocols to bridge the 65% utilization gap. As global players like Amazon and Netflix scale their ad tiers, the 30% US market premium will likely pressure local broadcasters to seek unified measurement standards to compete for shifting budgets. Watch for movements in programmatic transparency and frequency capping as platforms attempt to grow hourly ad loads without triggering churn.
The push for higher monetization comes as major streamers report significant shifts toward ad-supported tiers. Per Netflix's Q1 2024 earnings report, the company's ad tier accounted for 40% of all sign-ups in markets where the option was available, illustrating a rapid migration toward the hybrid model Omdia highlights. Furthermore, Amazon's January 2024 decision to make Prime Video ad-supported by default instantly created one of the largest addressable audiences in CTV, putting immediate pressure on CPMs and fill rates across the ecosystem. This influx of inventory supports Omdia’s findings that the industry has not yet reached its revenue ceiling.
Simultaneously, the measurement gap remains a primary hurdle for achieving the documented $0.21 potential. In May 2024, NBCUniversal and other major broadcasters continued to advocate for multi-currency measurement solutions, seeking alternatives to Nielsen to better capture cross-platform viewing habits. Per AdExchanger in June 2024, the lack of a 'unified currency' is cited by 60% of buyers as the main barrier to increasing CTV spend. Without these standards, the two-tier market between US and international buyers—and between global streamers and local broadcasters—is expected to persist through 2025.
Technological investment is also pivoting toward 'shoppable' formats to drive higher HOV value. Per TechCrunch, Disney and Roku both expanded interactive ad units in early 2024, allowing viewers to purchase products directly via remote. These high-intent units command higher CPMs than standard pre-roll, offering a path to exceed Omdia's $0.21 benchmark without necessarily increasing the total number of ad minutes per hour. As fill rates improve, the integration of retail media data will be the next major lever for narrowing the monetization gap between domestic and international streaming markets.
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