Video streaming is no longer just a trend—it has become one of the core pillars of modern media consumption. For the advertising industry, this shift creates massive opportunities, as streaming platforms offer ever-growing reach and highly precise audience targeting. While traditional TV advertising still plays a role, budgets are steadily shifting toward streaming formats.
Why Streaming Ads Is Driving Growth
Measured by global ad spend, TV and video streaming ads rank directly behind search advertising, making them one of the most important segments in the digital advertising market (PwC, Global Entertainment and Media Outlook).
This shift is clearly reflected in platform strategies:
- By the end of 2024, more than half of Netflix’s new subscribers chose its ad-supported model (Netflix Investor Relations).
- In Germany, although traditional TV advertising revenue still stood at €3.6 billion, the paid video streaming advertising segment surged to an estimated €1.7 billion in 2024, with strong growth expected in coming years (Statista).
Media Consumption in Transition: Streaming Boom, TV in Decline
The rise of streaming is directly tied to shifting patterns of media usage.
- Streaming on the rise: The number of global video streaming subscriptions reached 1.4 billion in 2024 and is projected to surpass 1.6 billion by 2027 (PwC).
- Linear TV under pressure: In Germany, daily TV viewing time dropped to 182 minutes per person in 2023—the lowest level in 25 years. Younger audiences especially are consuming TV content via live streams or media libraries instead of classic broadcast TV (ARD/ZDF Online Study 2024).
This trend highlights one key fact: brands that want to stay visible and relevant must invest in streaming advertising.
The FAST Revolution: Free Ad-Supported Streaming TV
One of the most dynamic business models in streaming is FAST (Free Ad-Supported Streaming TV). It offers free, ad-supported content as an alternative to cable or subscription services.
- Growth: Between 2020 and 2024, the number of FAST users nearly doubled. By 2027, Germany alone could reach 20 million FAST viewers (Statista).
- International success: In the U.S., Tubi already has 63 million monthly active users (Q2 2024), while in Germany Pluto TV, Rakuten, and Samsung TV Plus dominate the market (Variety).
- How it works: Content is structured into thematic channels with linear programming. Ads appear between or within shows, much like traditional television. Many platforms now also combine FAST with on-demand libraries.
For advertisers, FAST combines broad reach with targeted delivery, while giving consumers cost-free access to premium entertainment.
Streaming Advertising Is Becoming the Standard
The data paints a clear picture: video streaming is set to become one of the world’s most important advertising channels. While classic TV ads continue to generate billions in revenue, the fastest growth lies in streaming formats—especially FAST models.
For advertisers, this means:
- Strategically shift budgets toward streaming platforms.
- Develop new audience models that reflect multi-device, on-demand viewing.
- Experiment with innovative formats such as interactive ads, shoppable video, and personalized in-stream content.
Those who invest in streaming advertising now secure a decisive competitive edge for the future.
Our Solution: Premium AI-Powered Advertising
At That Works Media, we specialize in AI-based video ad production designed for streaming platforms. From short in-stream clips to cinematic campaigns, we deliver scalable, cost-efficient, and visually striking advertising content.
Our Services at a Glance:
- AI Video Ads in 4K – from storyboard to final delivery.
- Rapid production & flexible revisions – adapt campaigns on demand.
- Cost-efficient campaigns compared to traditional film production.
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- Ready for all platforms – optimized for FAST, YouTube, Instagram, TikTok, and connected TV.
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