$0.21 per Viewing Hour Sets Monetization Benchmark For Ad-Supported CTV

Ad-supported Connected TV (CTV) video services have the potential to generate an average of $0.21 per hour of viewing (HOV) if all available advertising slots are fully utilized, according to Omdia. This figure establishes a new monetization benchmark for Hybrid Video on Demand (HVOD)—services combining subscriptions with advertising—as well as Advertising Video on Demand (AVOD), Free Ad-Supported Streaming TV (FAST), and Broadcaster Video on Demand (BVOD) platforms.

The report found that the industry is currently operating at only 65% of its commercial capacity and 32% of the maximum regulatory advertising limit for broadcast linear TV, suggesting that revenue could double or triple as hourly ad volumes grow and achieve full utilization. This benchmark is based on current video advertising loads across CTV streaming services in Australia, Brazil, Canada, France, Germany, Mexico, the UK, and the US in 2025.

“Measuring success in the CTV streaming market has never been more important,” stated Matthew Bailey, Senior Principal Analyst, Advertising at Omdia. “Remarkably, the consistency of the $0.21 per HOV benchmark across all types of video services is particularly notable, despite substantial differences in advertising loads, cost-per-mille (CPM), and audience characteristics. Understanding how these KPIs relate to one another will be critical for CTV players looking to grow and drive long-term value.”

The report also identifies several challenges within the CTV advertising ecosystem, including the requirement for harmonized measurement standards, closer regulatory alignment with traditional broadcast television, and the increasing dominance of U.S.-based entities in the global market. Furthermore, it highlights a significant monetization gap between the U.S. and international markets. While the U.S. commands advertising premiums roughly 30% higher than other regions due to its scale and production investment, non-U.S. markets face challenges such as lower purchasing power parity (PPP), regulatory hurdles, and tensions between commercial and public service broadcasting requirements.

“Ad-light HVOD services including Netflix, Amazon Prime Video, and Disney+ have the greatest managed growth potential,” noted Laura Chaibi, Consultant and CTV and TV Streaming Advertising SME at Omdia. “However, reaching the $0.21 HOV benchmark requires foundational work, including growing the advertiser base to maximize advertising fill rates and improving advertising context protocols. A more level playing field for local and national TV broadcasters and global CTV streaming players is also needed to mitigate the two-tier TV and video advertising model currently in place.”