Streaming's Next Frontier: Ad-Based Models, AI-Driven Content, and Evolving Viewer Habits

In today’s fast-evolving media landscape, streaming platforms and digital advertisers are facing a critical turning point. From AI-powered creative campaigns to the growing adoption of ad-supported models, the industry is shifting rapidly. This week, we analyze key trends in Connected TV (CTV), streaming services, and social media engagement that are shaping the future of digital advertising.

Streaming battles: Apple TV+ Surges with ‘Severance’

Apple TV+ has reached new heights as its hit show Severance sets streaming records. The psychological thriller has surpassed Ted Lasso in unique viewership, amassing 589 million minutes watched in the U.S. alone. With 28% of that viewership stemming from the season two premiere, Apple’s strategic timing and promotional efforts—like offering a free preview weekend—have paid off.

Key Takeaways:

• The season 2 premiere led to a 126% increase in new Apple TV+ sign-ups between January 1-19, 2025.
• The show’s global success highlights the impact of high-quality original content in attracting international audiences, particularly in the U.S., U.K., Brazil, and Australia.
• Apple’s broader strategy reflects a shift away from expensive theatrical releases to focus on subscription-driving content.
• With Apple TV+ gaining momentum, speculation grows around a potential ad-supported tier, a move that could further boost its market share.

Why It Matters:

The success of Severance underscores the power of must-watch content in driving both engagement and revenue. Apple’s pivot towards strategic content investments rather than high-budget films aligns with broader industry trends favoring subscription-based and hybrid monetization models.

Contextual Ads vs. Personalized Ads: The Privacy Shift

Consumers are growing wary of hyper-personalized ads that rely on browsing history. A Gum Gum survey found that 94% of consumers across the U.S., U.K., and Canada prefer contextual ads over identity-based tracking.

Why This Matters:

• Almost 80% of consumers engage more with ads that align with the content they’re consuming.
• Marketers are moving towards AI-driven contextual targeting, ensuring relevance without compromising privacy.
• The challenge lies in creating seamless, non-intrusive ad experiences that feel natural to users.

The Role of AI in Advertising Creativity

Artificial Intelligence is now more than a productivity tool—it’s becoming a core driver of advertising creativity. A recent Gartner study found that 77% of marketers using generative AI leverage it for creative tasks.

Why AI is Transforming Advertising:

• 87% of CMOs faced marketing campaign challenges in the past year.
• 45% of marketers have had to terminate campaigns early due to poor performance.
• AI can streamline content creation, personalization, and optimization to improve campaign efficiency and performance.

TikTok vs. Instagram: The Engagement Battle

While Instagram impressions have grown by 13% year-over-year, engagement has dropped by 28%, according to a Social Insider report. Meanwhile, TikTok maintains the most engaged audience of all social platforms.

Key Data Points:

• The average TikTok post receives 3,092 likes, while Instagram posts get only 395 likes on average.
• Brands post five times per week on Instagram vs. two times per week on TikTok, yet TikTok delivers higher engagement rates.
• The shift suggests that short-form, highly interactive content is winning over audiences.

What This Means for Brands:

Marketers need to prioritize engagement over reach, leveraging platforms like TikTok to drive meaningful interactions rather than relying on traditional social media metrics.

Viaplay’s Ad Strategy: A Cautionary Tale

Northern European broadcaster Viaplay Group has been navigating a strategic shift after facing mounting losses due to an overly ambitious international expansion. While the company reported a 4.7% increase in core sales, its ad revenue dropped 3% due to declining linear TV advertising.

What Went Wrong?

• Viaplay expanded its subscription model too aggressively without securing enough sustainable ad revenue.
• The company has since refocused on sports and unscripted content, alongside launching a hybrid ad-supported subscription tier.

Lessons for the Industry:

• Ad-supported tiers are critical for balancing growth, but they must be backed by strong content strategies.
• Diversifying ad revenue streams across digital and radio, rather than relying solely on linear TV, is crucial for future-proofing media businesses.

Final Thoughts: Where is Streaming Headed?

As Apple TV+ TV+, Disney Advertising +, and other platforms embrace hybrid monetization models, the industry is moving toward a balance between ad-supported and premium subscription offerings. Meanwhile, AI is reshaping ad creative, and contextual advertising is proving to be the key to privacy-friendly engagement.

With, AI-driven creative innovation, and the rise of TikTok 's engagement dominance, brands must adapt to these trends to stay ahead in the digital advertising landscape.

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