Free streaming earns higher consumer trust than social media ads
A Harris Poll commissioned by Tubi found that 74% of streamers appreciate brands that advertise during free streaming, indicating higher trust for ad-supported streaming among consumers. The study, cited by Tubi VP Chris Grillo, also revealed a 4-to-1 ROI for CPG advertisers on Tubi, with ad-supported streaming being the second-most-trusted ad source behind a brand's own website. The article highlights that free streaming is gaining significant reach and trust, offering CPG marketers an effective environment for advertising, especially with co-viewing. The Nielsen February 2026 Gauge report notes that 45.6% of US TV viewing time is ad-supported streaming.
Key Takeaways
- Ad-supported streaming viewership rose 9% quarter-over-quarter as of early 2026.
- Streaming ads ranked as the second-most-trusted source after brand websites, beating social media by 20%.
- Co-viewing is a primary driver for CPG, with 36% of viewers watching with partners and 26% with children.
- Tubi reported an average 91% incremental reach compared to traditional linear TV campaigns.
Why It Matters
The shift toward ad-supported streaming marks a structural transition where consumers view advertising as a fair exchange for premium free content. For CPG brands, this high-trust environment offers a reliable bridge to fragmented audiences that are increasingly unreachable via linear TV. The data reflects a move away from the hyper-individualized targeting of social media toward household-level co-viewing, which naturally aligns with shared grocery and beverage purchasing decisions. Watch for whether CPG marketers shift the remaining 70% of their legacy linear budgets into FAST and AVOD platforms as third-party ROI validation becomes more standardized.
Additional Context
The expansion of the ad-supported market comes as Nielsen continues to refine its 'The Gauge' methodology to better capture cross-platform currency. Per MediaPost in April 2026, streaming's total share of U.S. TV viewing reached 48%, up from 43.5% the prior year, despite a brief reporting delay caused by industry-wide debates over measurement accuracy. This growth is increasingly fueled by live events; for instance, the opening match of the 2026 FIFA World Cup on Tubi and Fox One set records with peak viewership hitting 18.86 million, according to SportsPro in June 2026. While ad-supported models thrive, the industry is witnessing a divergence in viewer loyalty. Per PPC Land in June 2026, ad-supported streaming time surged 24% year-on-year while ad-free viewing minutes fell by 26%. This shift is most pronounced among younger demographics; a VAB analysis found that 70% of viewers aged 25-34 now prefer free ad-supported video over paid subscriptions, up from 60% in 2025. This 'intentional' consumption model, where 95% of Tubi viewing is on-demand, contrasts with traditional linear FAST channels that skew toward older audiences and scheduled programming. Market-wide, the move toward transparency is driving profitability for free services. Per Reuters in early 2026, Tubi's fiscal performance reflected a 27% revenue increase, reportedly reaching profitability during a period where legacy media companies struggled with streaming losses. This financial stability is allowing platforms to double down on 'agentic' and automated ad tools. According to MediaPost in June 2026, major CPG players like The Coca-Cola Company are actively evolving their digital-first marketing systems to prioritize technology-driven reach over traditional media planning.
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