For years, streaming platforms thrived by offering ad-free content, a key factor that attracted millions of subscribers. The COVID-19 pandemic further accelerated this growth as Canadians turned to streaming services while staying home. Many households subscribed to multiple platforms, fueling a subscription boom.
However, the landscape has shifted. Subscription growth has plateaued, and as the cost of living rises, Canadians are reassessing their expenses with almost 30% of Canadian adults changing or cancelling their SVOD service to save money(1).
The rise of ad-supported streaming
To counter slowing subscription growth, streaming platforms have turned to advertising as a new source of revenue. Netflix launched its ad-supported tier in 2022, quickly followed by Disney, Crave, and then Amazon Prime Video in February 2024. Apple TV+ has yet to introduce an ad-supported option, but industry watchers speculate it may be next.
YouTube, long known for its ad-supported model, introduced its premium ad-free offering in Canada way back in 2018. A cheaper Premium Lite offering (mostly ad-free) is on the horizon having recently been launched in the US.
Beyond these major players, Canada has also seen a surge in free, ad-supported streaming services, providing more options for cost-conscious viewers.
Numeris VAM data shows that Netflix, Disney+, Amazon Prime, Crave and YouTube account for almost two-thirds of streaming viewership in Canada. However, if we look at total video viewing they barely account for a quarter of hours tuned as traditional broadcast TV still dominates.
For more insights on VAM audiences please visit Numeris Video Insights & Learning.
How many Canadians are watching ad-supported streaming ads?
When it comes to ad exposure, the experience differs by platform. Initially, Netflix and Disney+ required users to opt into their ad-supported tiers, whereas Amazon Prime Video automatically enrolled users in its ad-supported model unless they paid for an ad-free experience. This has led to varying levels of ad exposure among Canadian viewers.
Data from MTM 18+ indicates that the number of Canadians who have seen ads on the respective platforms has grown between the Spring and Fall 2024 surveys.
What this means for advertisers
For advertisers and agencies, understanding the actual reach of ad-supported streaming is crucial. Simply planning campaigns based on total platform viewership would present an inaccurate picture of ad delivery. To address this, our Video Planner includes an Ad Factor, based on the latest MTM 18+ survey data but can be adjusted to user estimates.
The impact on campaign delivery of this increase in ad-supported viewing is notable. For example, an Ontario campaign planned across 4 weeks with 1m impressions on each of the 5 platforms would now reach 1.5m adults (an increase of 152,000 or 11% on previous figures).
Looking ahead
As more Canadians embrace ad-supported streaming, advertisers have new opportunities to reach engaged audiences in premium environments. With platforms continuing to refine their ad offerings it seems the ad-supported streaming model is here to stay and with Video Planner advertisers and agencies can plan their campaigns using industry-standard VAM data adaptable for this changing environment.
(1) MTM 2023-2024 Changing Lanes Report