AUS Online Ad Spend Slowed in 2023; US Streaming Revenues Set to Overtake Pay-TV

On today’s ExchangeWire digest: AUS Online Ad Spend Slowed in 2023; US Streaming Revenues Set to Overtake Pay-TV; US Streaming Subscriptions to Drop by 3.9 Million in 2024 

Australia’s online ad spend in 2023 slowed to a growth rate of 3.7% year-on-year, according to the latest ad expenditure report from IAB Australia. Last year’s growth rate was significantly lower than the previous years’, which recorded a 9.1% lift. The highest growth in 2023 was achieved by search and directories which grew 6.1%, while general display increased 3.9%. General display produced mixed results: video and digital audio saw considerable growth, while standard display took a hit. 

In the TV landscape, US streaming revenues are set to pass pay-TV. A research forecast expects total revenues from streaming (including advertising revenue from hybrid streaming subscription tiers) to overtake those from pay-TV subscriptions in the US for the first time in Q3 2024. This year, US streaming advertising revenues are predicted to exceed USD $9bn (£7.1bn). A slowdown in streaming subscriber numbers in markets such as the UK and US has been putting increasing attention on revenue growth. 

In line with this, another research study looking into pay-TV expects US subscribers to drop by 3.9 million this year to 56.3 million. Looking further to the future, the US is predicted to lose almost 10 million pay-TV subscribers by the end of the decade. In comparison, there were 111 million subscribers in 2015. 

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