Rifan Muazin
As the Connected TV (CTV) landscape matures, the streaming industry finds itself at a pivotal crossroads. No longer the "wild west" of experimental media buying, ad-supported streaming is entering a period of significant structural change, characterized by massive corporate consolidation, a shift in performance expectations, and the cautious but inevitable integration of artificial intelligence.
This comprehensive analysis, derived from the latest installment of Digiday+ Research’s CMO Strategies series, examines how top-tier marketing executives are navigating this evolving terrain. By synthesizing survey data from 125 marketing and media leaders and qualitative insights from industry veterans, this report maps the future of the streaming ad playbook.
The Landscape of Ad-Supported Streaming: A Shift Toward Consolidation
The streaming ecosystem is currently defined by fragmentation, but that is rapidly changing. Media giants are moving to simplify the viewer experience and aggregate scale. The Walt Disney Company is slated to integrate Hulu directly into Disney+ by the end of 2026, while a proposed mega-merger between Paramount and Warner Bros. Discovery could see Paramount+ and Max combined into a single, formidable service.
Market Hierarchy and Investment Trends
Despite the looming structural shifts, the current hierarchy of ad-supported platforms remains stable. For the fourth consecutive year, YouTube continues to dominate, securing the largest share of both ad placements and total budget allocations. According to the Q1 2026 survey data, 75% of brand and agency respondents currently utilize YouTube for ad placements, with 50% of respondents naming it the primary recipient of their streaming budgets.
Amazon’s Prime Video (with ads) holds the second position, with 47% of marketers placing ads there, followed by a tie between Hulu and Paramount+ at 43%. While these leaders currently dominate, the impending mergers are expected to recalibrate the competitive field.
Chronology: The Path to the "Mega-Bundle" Era
The streaming industry’s trajectory over the last two years reveals a clear move toward recreating the "cable bundle" model, albeit on a digital, ad-supported foundation.
- 2024–2025: The industry saw an explosion of ad-supported tiers, leading to extreme fragmentation. Advertisers struggled to navigate a dozen competing platforms, each with proprietary data silos.
- Late 2025: Strategic focus shifted from mere reach to "deterministic measurement," as agencies began testing conversion API (CAPI) tools and clean-room solutions to track user journeys from ad exposure to purchase.
- Q1 2026: Digiday+ Research identifies that marketers are prioritizing "business outcomes" over simple impressions. YouTube solidified its position as a "mainstream TV network," functioning increasingly like a traditional broadcaster.
- Late 2026 and Beyond: The anticipated integration of Hulu into Disney+ and the potential Paramount/Max merger will likely serve as the catalyst for a new, consolidated era of media buying.
Supporting Data: Measuring Success in the Streaming Era
The metrics defining "success" in CTV are evolving. Historically, marketers relied on broad reach, but the current climate demands proof of return on investment (ROI).
Key Performance Indicators (KPIs) by Platform
Marketers are applying different measurement frameworks depending on the platform’s unique environment:
- Watch Time: This remains the primary metric for YouTube (46% of marketers), reflecting the platform’s unique user engagement model.
- Impressions: This remains the gold standard for reach-heavy platforms like Peacock (50%), Max (47%), and Disney+ (43%).
- Click-Through Rates (CTR): Netflix (26%) and Prime Video (18%) see higher utilization of CTR as a success metric, likely due to their tighter integration with e-commerce and checkout capabilities.
Harry Browne, VP of TV, audio and display innovation at Tinuiti, emphasizes that the industry is moving away from the "black box" era. "We’ve seen a lot of these traditional black box, walled garden environments become more open to the idea of deterministic measurement that can follow a user all the way down to a purchase or revenue event," Browne noted.
Official Perspectives: Navigating the Walled Gardens
The tension between scale and transparency remains a dominant theme. As media giants consolidate, they are increasingly positioning their platforms as "premium" environments where content quality justifies the ad spend.
The Case for Quality and Data Collaboration
Kristina Shepard, EVP of streaming, performance sales and partnerships at NBCUniversal, argues that the value proposition of streaming is shifting. "Impressions and watch time are important, but in today’s streaming marketplace, brands are focused on what’s next: building relationships with audiences and driving measurable business outcomes," she stated.
Conversely, YouTube’s Brian Albert offers a cautionary perspective on the "mega-bundle" trend. He suggests that while consolidation may help with targeting, it risks alienating viewers who are already fatigued by the proliferation of subscription apps. Albert advocates for a "full-funnel" approach, encouraging marketers to look beyond basic metrics and consider collaborations with creators to drive brand interest and search lift.
The CMO Perspective
Jeremy Lowenstein, CMO at Milani Cosmetics, warns against applying a one-size-fits-all measurement strategy. "If everything is measured on ROAS (Return on Ad Spend), you’re in for failure," he cautioned. Lowenstein suggests that CMOs must align their KPIs with the context of the programming. "CTV isn’t about immediate conversion. You should be looking at it through the lens of a CPM, a view-through rate, or a click-through rate, depending on what screen consumers are watching on."
Implications: The AI Dilemma in CTV
Perhaps the most striking finding in this year’s research is the disparity in AI adoption between social media and CTV. While 51% of marketers are utilizing AI in social media campaigns, only 18% have integrated AI into their CTV efforts.
Why CTV is Lagging in AI Adoption
The hesitation stems from a blend of technical and cultural factors:
- Creative Sensitivity: Advertisers are "precious" about their CTV creative. Because TV remains the "biggest screen in the house," brands are fearful that AI-generated content might appear "off" or diminish brand prestige.
- Structural Barriers: Unlike social media, which is largely self-contained within walled gardens, CTV is plagued by fragmented identity resolution and siloed measurement, making it difficult for AI to pull cohesive data.
- The "Broadcast Mindset": Historically, TV was built on a broadcast mentality rather than the data-driven infrastructure of social platforms.
The Future of AI in Streaming
Despite the 82% of marketers currently not using AI for streaming, the tide is turning. Early adopters are using AI for:
- Contextual Targeting: NBCUniversal’s launch of AI-powered tools for live sports demonstrates how AI can match ad messaging with real-time storytelling.
- Creative Production: Roku is leveraging AI to help smaller, DTC brands overcome the prohibitive costs of traditional TV creative, effectively democratizing the space.
- Infrastructure Optimization: Emerging technologies like the "VOID" tool (which allows for virtual product placement) and AdCP (Ad Context Protocol) are set to automate media buying and increase operational efficiency.
Conclusion: Strategic Recommendations for the Modern CMO
As we look toward 2027, the streaming landscape will likely become less fractured but more competitive. For CMOs, the path forward requires a three-pronged strategy:
- Prioritize Deterministic Measurement: Move away from vanity metrics like impressions and lean into clean-room data that links ad exposure to real-world purchase behavior.
- Embrace Consolidation: Use the pending platform mergers to negotiate better terms and leverage the larger, unified data sets these new entities will provide.
- Adopt AI as a Process Tool, Not a Creative Crutch: While the industry is rightly hesitant to turn over creative control to AI, the use of AI to solve process-heavy tasks—such as data synthesis, contextual ad placement, and real-time audience matching—is no longer a luxury. It is a competitive necessity.
The "mega-bundle" era of streaming is not just a change in corporate ownership; it is an invitation for marketers to finally bridge the gap between the reach of traditional television and the precision of digital performance marketing. Success in this new era will belong to those who are "honest" with their scorecards, prioritizing business outcomes over the comfort of traditional broadcast metrics.
Dwi Wanna
