At the end of 2023, YouTube announced a significant change to its ad break architecture for users viewing content on connected TV (CTV) devices. YouTube’s internal research revealed that 79% of viewers consuming long-form content on TV screens “prefer video ads that are grouped together instead of distributed throughout a video.” This insight led the company to implement more concentrated ad breaks of longer duration on select programming when viewed on smart TVs.
While YouTube currently accounts for more viewing than most other streaming services, with Nielsen’s The Gauge attributing 10.4% of total day viewing among persons 2+ in the U.S. to the platform in July 2024, it isn’t among the services tracked on StreamTRAK due to its unique, targeted service model. However, YouTube’s strategic shift is indicative of broader trends that warrant close examination. The platform seems to be extending its ad breaks, potentially emulating the more traditional TV experience, particularly as it transitions into a platform predominantly consumed on television screens.
In contrast, looking at ad break architecture among providers audited by StreamTRAK Ad Sales from the start of 2023 through mid-2024, we observe a divergent trend. Netflix, which ranked second in Nielsen’s Gauge for July 2024 with 8.4% of viewing, reduced both the frequency and duration of its ad breaks in the second half of 2024 compared to the first quarter of 2023. Netflix decreased from over two ad breaks per hour, averaging nearly 54 seconds each, to one and a quarter ad breaks per hour, averaging just 20 seconds each. This comes as Netflix has begun to develop its own ad sales infrastructure after initially partnering with Microsoft when it introduced ads in late 2022. Similarly, Prime Video maintains a light ad load, averaging about one and a half ad breaks per hour, each lasting around 30 seconds.
Hybrid SVOD services have largely maintained consistent ad break structures, with three ad breaks per hour and an average duration of about one minute, both at the start of 2023 and in mid-2024. However, for movie content, StreamTRAK analysts have noted a slight decrease in the number of ad breaks, coupled with a 12-second increase in average ad break duration per hour compared to early 2023. This shift is likely due to the growing popularity of pre-roll-only ad experiences in movies.
Hybrid SVOD services have largely maintained consistent ad break structures, with three ad breaks per hour and an average duration of about one minute, both at the start of 2023 and in mid-2024. However, for movie content, StreamTRAK analysts have noted a slight decrease in the number of ad breaks, coupled with a 12-second increase in average ad break duration per hour compared to early 2023. This shift is likely due to the growing popularity of pre-roll-only ad experiences in movies.
YouTube’s ongoing evolution into a platform primarily consumed on connected TVs marks a significant shift in its role within the digital landscape. With eMarketer projecting that nearly 50% of all time spent on YouTube will be on connected TVs by 2026, YouTube has been taking incremental steps to “traditionalize” its ad experience by lengthening ad breaks and removing the ability to skip ads for some longer-form content. This approach contrasts sharply with the trends observed among paid streaming services like Netflix, which have been shortening ad breaks to minimize viewer disruption and improve the user experience.
Next? It appears that YouTube and hybrid SVOD services are on conflicting trajectories—while YouTube looks to optimize its ad revenue by adopting a more traditional TV ad model, paid services seem to be moving towards shorter, less intrusive ad experiences. This divergence suggests that, in the coming years, platforms may increasingly pursue different strategies to balance optimizing viewer engagement, ad revenue, and user satisfaction.
