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State of the Screens

How Much Ad Revenue Do Streamers Make per Hour?

By October 13, 2022No Comments

Six big questions re: streaming ad prices:
1) What does an hour of total TV time look like?
2) What share of total TV ad impressions does streaming account for?
3) When will streaming account for a majority of total TV ad impressions?
4) How much do marketers pay for spots during streaming shows?
5) What is the ad load for various streaming services?
6) How much does each streamer generate per hour in advertising revenue?

Big question #1: What does an hour of total TV time look like?

Example hour for total TV (% of total):
1) Linear TV (ad-supported) – 30 (50%)
2) Streaming TV (ad free) – 12 (20%)
3) Streaming TV ad-supported) – 11 (18%)
4) Linear TV (ad free) – 7 (12%)

Ad minutes created per hour of total TV time:
1) Linear TV – 7.9 (88%)
2) Streaming – 1.1 (12%)

Big question #2: What share of the total TV advertising market does streaming account for?

Quick answer: 22%

Connected TV share of total TV advertising:
1)
 2020 – 13%
2) 2021 – 19%
3) 2022 – 22%
4) 2023 – 29%
5) 2024 – 31%
6) 2025 – 37%

Big question #3: When will streaming account for the majority of TV ad impressions?

Quick answer: If we assume streaming’s ad load continues around 6 minutes per hour, it would need to account for 80% of total TV time, with 70% of streaming being ad-supported.

Bottom line: We will be buying linear TV and streaming together into the next decade.  There must be seamless integration between the two.

Big question #4: How much do marketers pay for spots during streaming shows?

Advertising CPMs according to Digiday / Business Insider:
1) Netflix – $80
2) HBO Max – $50
3) Disney+ – $50
4) Peacock – $43
5) Paramount+ – $23

Big question #5: What is the ad load for various streaming services?

Advertising load by platform, according to the Hollywood Reporter:
1) Paramount+ – 10 minutes
2) Disney+ – 6
3) Peacock – 5
4) HBO Max – 4
5) Netflix – 4

Big question #6: How much does each streamer generate per hour in advertising revenue?

Revenue per ad-supported streaming hour:
1) Netflix – $0.64
2) Disney+ – $0.60
3) Paramount+ – $0.46
4) Peacock – $0.43
5) HBO Max – $0.40

Michael Beach

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.