Roku, Hulu, Peacock, Pluto TV, and Tubi collectively gathered a 31% increase to USD 849 million last quarter. US CTV ad spending is projected to grow by 25.2% in 2020 as a result of increased media usage.
Ad-supported video-on-demand platforms have seen a spike in ad revenues in Q2 2020, during the Covid-19 pandemic. According to estimates concluded by MoffettNathanson Research, collective ad revenue figures between Roku, Hulu, Peacock, Pluto TV, and Tubi saw a 31% year-over-year increase to USD 849 million last quarter.
The researcher projects US CTV ad spending to grow by 25.2% this year due to increased media usage resulting from Covid-19 stay-at-home restrictions. Roku’s revenue rose by 32% year-over-year to USD 116 million in Q2. The growth correlates with the 30.9% growth in ad revenues MoffettNathanson expected from the service in 2020, along with its H2 growth surpassing Q2 overall as the ad market bounces back.
The fact that the platforms are owned by media conglomerates plays a large factor in their massive growth. The 31% increase in ad revenues contrasts the researcher’s previous forecast of a 28% decline in national broadcast and cable TV ad spending in Q2. The increases are also attributed to TV advertisers moving to spend with media companies to their own OTT properties. “Some advertisers who bought ads in the upfronts are shifting money within the same media company to streaming services," Eric Haggstrom, eMarketer Forecasting Analyst, Insider Intelligence.
Disney’s streaming service Hulu received a 7.5% year-over-year increase to USD 546 million in Q2. Though its lower than Roku, Hulu has a more established space in the AVOD industry. Hulu’s ad revenues were USD 1.89 billion while Roku garnered less than a third at USD 584.4 million. NBCU's Peacock and ViacomCBS-owned Pluto TV collectively gathered USD 80 million amid the company’s ability to secure deals with large launching partners. Fox’s Tubi netted USD 28 million last quarter.