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Netflix’s big push into advertising is attracting big investment.
The streaming platform, along with rivals like Disney+ and social platforms like TikTok, have attracted considerably more media ad spend in Q1 compared to a year ago, according to market intelligence firm Guideline, which measures ad agency media investment using data from Standard Media Index.
The growth at Netflix and other streamers, which Guideline measured in the fiscal quarter ahead of this year’s upfronts, came amid a push to build out advertising across several platforms, including on Prime Video, and as streaming platforms raise prices on ad-free viewing and crack down on password sharing, which could stand to help their ad-supported tiers.
Crunch the numbers: Disney+ saw the most growth in the timeframe, clocking a 210% YoY jump in gross media ad spend in the US in Q1, followed by Netflix with 135%, according to data Guideline pulled for Marketing Brew. TikTok clocked in at 100% growth, and Amazon Ads and Fire TV saw an 84% surge in online video ad spend growth, while advertisers spent 14% more on Amazon’s OTT ads.
Other platforms grew more modestly: Gross media ad spend for YouTube Select and YouTube TV’s online video ads grew 38% YoYin Q1, while OTT spend grew 10%, Guideline found. Peacock, meanwhile, saw a 12% bump in spend.
Some platforms had a tougher time wooing advertisers: Hulu and Roku both saw 6% YoY declines in gross media ad spend in Q1, according to Guideline. Overall, total digital video gross media ad spend in Q1 grew 20% YoY.
Growing pains: Streamers are hard at work building out their ad businesses. Disney+ and Netflix, which both have established ad tiers, have been eyeing or enforcing password-sharing limitations to help boost subscriber numbers, especially to their ad-supported tiers. After starting its crackdown, Netflix has reported several quarters of growth; last month, it reported 40 million ad-tier users. After a price hike cost it some subscribers earlier this year, Disney+ has bounced back, and it reported 22.5 million subscribers on its ad tier as of March.
Amazon didn’t debut its Prime Video ad tier until after Q1 had already begun, but recently reported an average ad-supported reach of 115 million monthly viewers in the US.
The increased investment in TikTok continues despite a potential national ban or sale, and the platform has released new tools designed to further woo brands. In May, TikTok debuted new generative AI ad tools, as well as new features in its Pulse Premiere advertiser partner program.