In the second quarter of this year, five premium advertising-supported video-on-demand (AVOD) streaming platforms witnessed a 31% rise in ad revenues -- versus a 28% decline for national broadcast/cable TV networks' revenue.
Those five -- Pluto TV, Roku, Hulu, Tubi, and Peacock -- pulled in an estimated $849 million in advertising revenues during the second three-month period of 2020, according to estimates from MoffettNathanson Research, amidst a sharp overall rise in connected TV usage.
“AVOD advertising benefitted from heightened usage and a mix shift in advertising budgets to OTT platforms, growing sizably in the quarter,” writes Michael Nathanson, senior research analyst at MoffettNathanson.
Roku and Hulu posted some of the strongest gains, with Roku rising 32% in the period to $116 million and Hulu, the dominant AVOD service, growing 7.5% to $546 million versus the same period a year earlier.
NBCUniversal’s Peacock which just launched last month, came in third at $80 million. ViacomCBS’s Pluto TV also came in at $80 million -- up 60% versus a year ago. Fox Corp.’s Tubi came in at $28 million -- with no comparable data available for its year-ago second-quarter period.
These results include some other ad-supported video-on-demand or streaming platforms -- such as CBS All Access and Amazon Fire TV.
These AVOD ad revenues comprise 12% of the overall domestic national TV/video/AVOD total for the period -- $7.3 billion, which was down 24% in the second quarter. Just looking at the traditional national TV networks -- broadcast and cable -- ad revenues were down 28% in the second quarter to $6.4 billion.
A number of projections put annual advertising revenue for all connected TV -- premium, network-owned, digital and otherwise -- at around $8 billion.