Streaming Isn’t Dying—It’s Evolving: Why 2025 Is a Golden Moment for Medium-Sized Businesses to use CTV Advertising

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  • 07 Jul, 2025

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“I swear to God, I am NOT subscribing to another thing.”

That was me, venting to my husband (who’s also my business partner) last week when our kid wanted to watch a movie that wasn’t available on any of the streaming platforms we already pay for.

Turns out I’m not alone.

Consumers are scaling back on subscriptions—but they’re not turning off their TVs. They’re shifting to ad-supported streaming, and that’s opening the door for small and medium-sized businesses to step in.

With low-budget ad tools from Hulu, Roku, and Paramount, plus the new Amazon–Roku partnership, it’s easier than ever to run targeted campaigns on the biggest screen in the house. And with smart TVs now letting viewers push your ad directly to their phones, the line between brand awareness and action is thinner than ever.

2025 is shaping up to be a great year to get back into streaming—without the hefty price tag.

 

1. Rising Subscription Fatigue

Consumers are feeling overwhelmed by juggling numerous services. A Deloitte survey from early 2025 reports that half of U.S. households have no money left after essentials and won’t increase streaming spend—many explicitly cited subscription fatigue.

Complementing this, Kadence reports over 60% of streaming consumers feel fatigued by managing multiple subscriptions, with one-third canceling at least one service in 2023. Americans are spending 23% less on streaming in 2024 vs. 2023 due to fatigue, rising costs, and reduced password‑sharing.

 

2. Growth of Ad-Supported Streaming

As audiences cut back, they're embracing ad-supported tiers. Mountain Research forecasts Hulu’s ad tier will hit 65% adoption by 2025; Disney+ nearly 40%, and Peacock already claims 84% ad-tier penetration. Anticipating this trend, Q1 2025 data shows a rise in ad-supported subscriptions.

 

3. Small to Medium-Sized Businesses Gain Access: Affordable, Precise CTV Ads

As audiences shift toward ad-supported streaming, major platforms are providing self-serve ad tools that are both affordable and targeted:

  • Hulu Ad Manager starts at a $500 minimum, allowing precise demographic, geographic, and interest-based targeting.
  • Roku Ads Manager offers similarly low-budget entry and access across Roku’s ecosystem.
  • Paramount Ads Manager (covering Paramount+, Pluto TV, CBS, Nickelodeon, Comedy Central, and more) also enables SMBs to launch campaigns for as little as $500 per campaign, with some sources highlighting the ability to start at $50/day in budget. It includes built-in creative tools, including AI support for generating 15‑ to 30‑second video ads—platforms like AI‑powered Waymark and Spaceback help create or repurpose ads from social content in minutes.

Together, these platforms have lowered traditional barriers to entry—offering unskippable, premium video on the big screen with real-time audience targeting and measurable results. It’s a game-changer for SMBs ready to harness CTV without breaking the bank.

 

4. Amazon + Roku Partnership Amplifies Opportunities

On June 16, 2025, Amazon Ads and Roku launched an exclusive partnership providing ad buyers access to ~80 million U.S. CTV households via Amazon's DSP. Initial testing indicates campaigns reached 40% more unique viewers with the same budget, while ad repetition dropped by 30%.

 

5. Interactive Ads: Push-To-Phone Features

Modern smart TVs (e.g. Roku, Samsung, LG) now support interactive ad units that let viewers “push” promo codes, coupons, or further info to their smartphones—bridging awareness with immediacy.

This transforms CTV from a branding medium to a conversion-first channel—a feature SMBs can leverage to drive foot traffic, online orders, or quick sign-ups—all trackable in real time.


 

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Bottom Line:

Streaming isn't going away—it’s shifting. And SMBs that lean into ad-supported CTV now can reach well-defined audiences affordably, with stronger conversion potential than ever before.

Xeno Media has created CTV ads for snack brands, political organizations, construction products and more. If you’re interested in leaveraging this opportunity in 2025, let’s talk!

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