Streaming video has become a daily habit for today’s consumers, with 2024 being something of a landmark year for the industry. Worldwide, audiences flocked to streaming platforms in unprecedented numbers to watch their favorite content and sporting action like the Olympics, Euro 2024, the World Series, the WNBA, and high-profile boxing matches.
Alongside technological advancements, CTV has established itself as the primary platform for premium viewing experiences, which has increased the popularity of live streaming for major events. This presents lucrative opportunities for media owners aiming to succeed in their ad-supported streaming ventures.
The latest FreeWheel research offers insights into these industry dynamics, exploring ad viewership trends across the premium video streaming ecosystem in European countries* and the U.S. for the second half of 2024. In this article, we’ll dig deeper into the findings to uncover how these trends impact media stakeholders and how they can make the most of streaming’s developments.
Scaling live opportunities with CTV
The continued adoption of connected television is driving strong streaming viewership, including live programming. NBCUniversal’s exclusive U.S .coverage of the Paris Olympics, for instance, saw an 82% increase in viewership across multiscreen TV compared to the Tokyo 2020 Games, while Warner Bros. Discovery’s coverage in Europe grew by four times. The WNBA 2024 season was the most streamed in Paramount+ history. And Netflix’s exclusive live stream of the fight between Jake Paul and Mike Tyson in November 2024 attracted 108 million global viewers.
It’s easy to see why live programming is also transitioning to streaming platforms. Live streaming can meet modern-day viewers’ desire for immediacy, convenience, and universally engaging experiences. Live streaming also expands traditional TV’s engagement potential to audiences with diverse needs and unique preferences.
In many cases, these needs involve watching live programming from the comfort of their own homes and simultaneously being able to enjoy social experiences with family and friends. CTV devices now account for 77% of premium video ad views for live programming in Europe, demonstrating how CTV has evolved into a class of its own, capable of delivering both high-quality viewer experiences and results for content distributors.
Our data also shows that while still relatively small, programmatic transactions are growing strongly, with 37% in the US and 40% in Europe. This type of transaction will continue to expand as rising investment in programmatic is opening up new inventory opportunities.
Harnessing VOD’s flexibility
FreeWheel’s research shows that in the US, the majority of ad views (57%) were on live content, with the remaining 43% on VOD. In Europe, however, VOD captured the majority of ad exposure, 76%, compared to 26% of live programming.
This preference for VOD in Europe can be partly explained by the historical presence of free public service broadcasters (PSBs) and the prevalence of operator authentication in the region. In the U.S., the tendency is towards OTT distribution, which accounts for 65% of ad-supported content that is consumed.
Publishers are harnessing the flexibility of on-demand to further monetize their video inventory. And while VOD offers various monetization models, including subscription-based access (SVOD), pay-per-view (TVOD), and advertising-based access (AVOD), it’s the latter category where we’re seeing impressive growth. verall ad viewership on streaming platforms in the second half of 2024 was up by 24% year-on-year in Europe compared to 10% in the US.
Going beyond with interactivity
Our report also identifies interactivity as a potential growth area. The digital nature of streaming and CTV means they are primed for interactive viewer experiences that media owners and advertisers can utilize to boost engagement. The use of ad formats such as QR codes, clickable ads, and trivia quizzes are becoming more common to drive engagement at all stages of the marketing funnel.
Beyond helping brands to make more meaningful connections with consumers, interactive ads present an opportunity for media owners to capture deeper insights on how audiences interact with content and the ads. This offers a better understanding of which formats and approaches work – and which don’t.
Video, by its very nature, is never static. But these latest innovations are ushering in a new, golden age of video. CTV in combination with interactivity creates the ideal conditions to deliver a new genre of ads that can flow with the content to enhance viewer engagement and enjoyment. Harnessing streaming’s next phase of evolution will be critical to ensure content providers, advertisers and their agencies keep innovating and delivering new exciting experiences for the viewers.
*The data set used for the FreeWheel Video Marketplace Report H2 2024 is one of the largest available on the usage and monetization of professional, rights-managed ad-supported video content worldwide and is based on aggregated advertising data collected through the FreeWheel platform. The European countries included are Belgium, Denmark, Estonia, Finland, France, Germany, Italy, Latvia, Lithuania, Netherlands, Norway, Spain, Sweden, and the United Kingdom.