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Political Ads Flood Streaming: Brace Up! 馃摵馃毃

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Overview: As Streaming Services Search for Ad Revenue: Exploring the Latest Strategies

The 2024 presidential election is still about a year out, but political ads are already airing as campaign spending ramps up. While broadcast television still dominates the political ad space, more campaigns are taking an increased interest in streaming platforms, which they find to be more effective attention grabbers than other forms of digital advertising like social media posts and pop-up ads. As more streaming services pay attention to advertising revenue, space for political ads could increase.

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Streaming services are a relatively new territory for political advertising regulation. Since the Federal Communication Commission (FCC) has no oversight over how political ads are streamed, the services are left to write their own rules and policies on the ads they choose and how they run them. The only guideline they have to follow is disclosing who paid for the ad, which is a Federal Elections Committee requirement.

During the 2022 election cycle, about 70% of campaign ad spending was put towards broadcast ads, compared to digital ads which received about 15% overall. However, streaming services can charge any rate they want for ads, which tend to be cheaper than broadcast ads, as there are more opportunities to show advertisements. While broadcasters may be making more money off of campaign ads than streamers, more services are selling ads that didn鈥檛 before as they search for ways to fill increasing revenue gaps.

Out of the 17 streaming services contacted for this story, eight responded with information on company ad policies around political advertisements. Large streamers like HBO鈥檚 Max, Paramount+, and YouTube TV said they are accepting political ads to run during programs. Paramount Global, the parent company of both Paramount+ and Pluto TV, says campaign ads require creative approval and they accept third-party political ads on a case-by-case basis. Hulu began accepting political ads in 2022.

However, big names in streaming like Netflix and Amazon Prime Video said they will not accept any form of political ads.

Frequently Asked Questions

How do streaming platforms integrate advertising to increase revenue?

Streaming platforms integrate advertising by placing advertisements in between content, before content, or after content. This allows the platforms to monetize their content, as well as provide a revenue source for advertisers. Streaming platforms also use targeted advertising to make the advertisements more relevant to the viewer, which can increase the effectiveness of the advertisement.

What are the implications of ad-supported tiers on subscription-based streaming services?

Ad-supported tiers on subscription-based streaming services can provide a lower-cost option for viewers who are willing to watch advertisements in exchange for a lower subscription fee. This can increase the number of subscribers and revenue for the streaming service. However, it can also lead to dissatisfaction among some viewers who prefer an ad-free experience.

Which streaming services currently offer ad-supported viewing options?

Several streaming services currently offer ad-supported viewing options, including Hulu, Peacock, and Pluto TV. These services offer a lower-cost subscription option for viewers who are willing to watch advertisements in exchange for a lower subscription fee.

How does advertising impact the profitability of streaming services?

Advertising can have a significant impact on the profitability of streaming services. By providing a revenue source for the streaming service, advertising can help offset the costs of producing and licensing content. However, if advertisements are too intrusive or irrelevant to the viewer, it can lead to a decrease in viewership and revenue.

What are the common formats of advertisements used in streaming services?

The common formats of advertisements used in streaming services include pre-roll ads, mid-roll ads, and post-roll ads. Pre-roll ads are shown before the content begins, mid-roll ads are shown during the content, and post-roll ads are shown after the content ends. Streaming services also use banner ads and pop-up ads.

How do consumer preferences influence ad strategies on streaming platforms?

Consumer preferences can influence ad strategies on streaming platforms by guiding the placement and targeting of advertisements. Streaming platforms use data on viewer behavior and preferences to determine when and where to place advertisements, as well as what type of advertisements to show. This can help increase the effectiveness of the advertisement and improve the viewer experience.


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