More consumers than ever are cutting the cord and making the switch to streaming services. The percentage of Americans watching television via cable or satellite has dramatically decreased from 76% in 2015 to just 56% in 2021. Among viewers aged 18-24, a staggering 87% prefer to access TV content through the internet. Additionally, over 65% of cord-cutters seek free or low-cost ad-supported services, such as Tubi.
In this article, we’ll explore everything you need to know about advertising on Tubi, as well as the broader landscape of connected TV (CTV) as it continues to expand. Whether you’re a marketer looking to reach a new audience or simply curious about the platform, we’ll provide insights into how Tubi works and the opportunities it presents for advertisers.
What is Tubi?
Tubi is an ad-supported video-on-demand (AVOD) service that boasts an extensive library of over 240,000 movies and TV shows, along with more than 100 local and live news channels. Users can stream content on over 25 platforms and devices, including Roku, Xbox, PlayStation, Amazon Fire TV, and Apple TV, as well as through apps for iOS, Android, and the web. The service is available in the US, Canada, Australia, Mexico, and Central America, with plans for expansion into the UK and Europe currently underway.
The best part? Tubi is completely free for all users, and there is no ad-free option available. This means that advertisers have the opportunity to reach Tubi’s entire audience of over 78 million monthly active users—an audience that is often difficult to engage through traditional linear TV advertising. According to Fox, which acquired Tubi for $440 million in March 2020, “Tubi is where unmatched content meets best-in-class innovation, offering advertisers a new way to break through to massive, young, diverse, incremental, and unduplicated audiences you can’t find anywhere else.” This makes Tubi a compelling opportunity for advertisers looking to connect with a broad and varied demographic.
While the platform is relatively new, it is experiencing rapid growth. Tubi now accounts for 1.5% of all TV and streaming consumption, making it the most-watched free TV and movie streaming service in the United States. As more consumers turn to streaming, Tubi is well-positioned to capture a significant share of the market, providing advertisers with a unique platform to reach their target audiences.
How Much Do Tubi Ads Cost?
Tubi operates on a cost-per-mille (CPM) pricing structure, meaning the cost of a Tubi ad varies based on the target audience and the ad format you choose. As a basic estimate, brands should expect to pay at least $20 per thousand views on Tubi. However, brands that partner with a direct response agency can anticipate 2-3 times more efficient CPMs compared to the general market.
Audience Targeting and Competition
Like most digital marketing platforms, the actual cost is influenced by competition. Certain demographics, such as young adults aged 18 to 24, are frequently targeted by advertisers, resulting in higher CPMs to secure media buys. This means your CPMs can fluctuate as competitors enter or exit the marketplace. For example, if a popular trend emerges that attracts more advertisers to a specific audience segment, the increased demand can drive up costs significantly.
Understanding your target audience is crucial. Conducting thorough market research can help you identify less competitive segments that may offer lower CPMs while still providing access to valuable viewers. Additionally, leveraging data analytics can help you refine your targeting strategy, ensuring that your ads reach the most relevant audiences without overspending.
Ad Format Considerations
Another important factor is the ad format. For instance, a 60-second ad will typically cost more than a 30-second ad, and a 120-second ad will be priced higher than a 60-second ad. The length of the ad can impact viewer engagement, with shorter ads often leading to higher completion rates. However, longer ads may provide more detailed messaging and storytelling opportunities, which can be beneficial for brand awareness and recall.
Additionally, less traditional formats—such as brand takeovers or content sponsorships—operate on an individualized pricing scale, which can vary significantly based on the specifics of the campaign. These formats can offer unique opportunities for brands to integrate their messaging into the content itself, potentially leading to higher viewer engagement and brand affinity.
Production Costs
Finally, it’s essential to remember that creating your ad incurs costs as well. If you’re looking to control expenses, a basic TV commercial could cost as little as $1,000. However, most prime-time quality ad spots can run into tens or hundreds of thousands of dollars to produce. This is due to the various cost centers involved in commercial production, including film crews, actors, coordinators, makeup artists, travel expenses, and rentals, among others.
Investing in high-quality production can significantly impact the effectiveness of your ad. A well-produced commercial is more likely to capture attention, convey your message effectively, and resonate with viewers. Brands should weigh the potential return on investment when deciding how much to allocate for production costs.
Why Advertise on Tubi?
Tubi presents an excellent opportunity for advertisers to create a positive brand experience, drive brand lift, and boost return on investment (ROI). For instance, one consumer packaged goods (CPG) brand experienced a remarkable 41% lift in ad awareness from a Tubi campaign, with purchase consideration among lapsed customers increasing by 47%. This demonstrates the platform’s effectiveness in reaching and engaging audiences.
Non-Skippable Ads and High Viewability
Tubi ads are non-skippable, ensuring brands achieve a 100% share of attention with “98%+ viewability as verified by MOAT.” This means that viewers are more likely to see and engage with the ads, enhancing the overall effectiveness of the advertising campaign. Additionally, Tubi features a light ad load, with ads taking up only four to six minutes per hour of viewing. Ads occur every 12-15 minutes, typically consisting of three to five ads per pod. According to Tubi, this structure contributes to higher brand recognition and recall, making it an attractive option for advertisers looking to make a lasting impression.
Advanced Frequency Management
One of the standout benefits of advertising on Tubi is their ongoing investment in streaming advertising technology. The platform’s proprietary Advanced Frequency Management (AFM) solution allows marketers to better manage ad frequency, enabling them to reach more viewers and maximize ROI from Tubi campaigns. Early tests of the AFM solution indicate a staggering 366% reduction in over-frequency, which means that viewers are less likely to see the same ad repeatedly, leading to a more positive viewing experience and a significant increase in reach.
Strategic Partnerships with Ad Tech Vendors
Tubi is also heavily investing in partnerships with ad tech vendors, which empowers advertisers to make more informed advertising decisions. In 2023, Tubi announced integrations with VideoAmp, LiveRamp, and Comscore, adding to their existing partnerships with The Trade Desk and Nielsen. These technologies help advertisers plan and forecast the impact of their Tubi campaigns, target audiences more precisely, and measure the holistic, multichannel impact of their advertising efforts.
Commitment to Innovation
In addition to the impressive features offered by Tubi’s ad tech partners, these cutting-edge collaborations signal Tubi’s commitment to investing in robust solutions for advertisers. As the platform continues to evolve, advertisers can expect enhanced tools and capabilities that will further optimize their campaigns and improve overall performance.
The Demographics of Tubi Viewers
Tubi describes its users as young, unique, diverse, and unattainable elsewhere. Here’s a quick breakdown of the demographics on Tubi:
Age: The average Tubi streamer is 37 years old, significantly younger than the average American TV viewer, who is 58 years old. This younger demographic indicates that Tubi is appealing to a generation that prefers streaming over traditional cable. From my perspective, the demographics of Tubi viewers present a fascinating opportunity for advertisers. The younger average age of Tubi users indicates a shift in viewing habits, as this generation is more inclined to seek out on-demand content rather than traditional cable. This trend suggests that brands need to adapt their marketing strategies to align with the preferences of a younger audience that values authenticity and engagement.
Gender: 54% of Tubi viewers are female, compared to 44% of linear TV viewers. This gender distribution suggests that Tubi is successfully attracting a more balanced audience, which can be advantageous for brands looking to target specific demographics.
Multicultural Identity: 42% of users identify as multicultural, which is considerably higher than industry estimates for cable TV. This diverse audience presents a valuable opportunity for brands aiming to connect with a wide range of cultural backgrounds and preferences.
Cable Usage: 75% of Tubi users live in households that don’t use cable television. This statistic highlights the platform’s appeal to cord-cutters and those seeking alternatives to traditional TV, making it an ideal space for advertisers looking to reach this growing segment.
Viewing Habits: 85% of users watch Tubi on their TV screens, meaning a Tubi ad is likely to reach an entire household. This characteristic enhances the effectiveness of advertising campaigns, as brands can engage multiple viewers at once, increasing the potential for brand recognition and recall.
When examining these statistics holistically, it’s clear that Tubi provides marketers with a ripe opportunity to reach consumers who are increasingly challenging to connect with through traditional TV advertising. The platform’s unique demographic profile allows brands to tailor their messaging and campaigns to resonate with a diverse and engaged audience.
Which Ad Types Are Available on Tubi?
Tubi offers multiple ad formats, including in-stream and in-app placements, providing advertisers with a variety of options to effectively reach their target audiences. Here’s an overview of each type of ad available on Tubi.
In-stream Video Ad Options
The most popular ad type on Tubi is the in-stream video ad. These ads are always unskippable, full screen, and can range from 6 seconds to 90 seconds in length, making them a powerful tool for advertisers looking to capture viewer attention.
Types of In-stream Video Ad Placements
Advertisers can choose between two primary types of video ad placements:
Pre-roll Ads: Pre-roll ads are displayed before the content begins. While they are often pricier, they tend to command the viewer’s full attention since they occur right when the viewer starts watching. This placement is ideal for brands looking to make a strong first impression and ensure their message is seen without distractions.
Mid-roll Ads: Mid-roll ads appear during the content, typically every 15 minutes or so during a TV show or movie. These ads can be effective in maintaining viewer engagement, as they are strategically placed to minimize disruption. Tubi provides a fairly seamless mid-roll ad experience for viewers, which is a significant advantage over other ad-supported services.
Viewer Experience
To enhance the viewer experience, Tubi incorporates a ten-second countdown before ads appear, giving viewers a brief moment to prepare for the interruption. Additionally, ads are often placed during scene changes or slower moments in the content, ensuring that the ad-viewing experience feels less intrusive. This thoughtful approach helps maintain viewer satisfaction and reduces the likelihood of frustration associated with ad interruptions.
From my perspective, the unskippable nature of in-stream video ads on Tubi can be a double-edged sword. While it guarantees that the message is delivered, it also places a responsibility on advertisers to create engaging and relevant content that resonates with viewers. I believe that brands should focus on storytelling and creativity to make the most of this format, especially for pre-roll ads where first impressions matter.
The seamless integration of mid-roll ads is another aspect I appreciate. By placing ads during natural breaks in the content, Tubi enhances the overall viewing experience. This strategy not only benefits viewers but also allows advertisers to reach audiences at moments when they are still engaged with the content.
Interactive Billboards
Interactive billboards are a dynamic advertising option on Tubi that appears at the bottom of a video ad during a commercial break. This innovative format allows viewers to engage with the ad content directly using their remote, cursor, or device, creating a more interactive and engaging experience.
Engagement Opportunities
When viewers see an interactive billboard, they have the option to engage with various elements or click through to the brand’s website. This interactivity can significantly enhance viewer engagement, as it encourages them to take action rather than passively watch the commercial.
Since these billboards appear alongside a video ad, viewers will see the banner for a duration of 6 to 90 seconds, depending on the length of the ad. This extended visibility provides brands with a valuable opportunity to capture attention and drive traffic to their online platforms.
Actionable Links
Brands that utilize interactive billboard ads often provide links to their product catalog or store locator, giving viewers the option to take immediate action. For example, if a viewer is watching a commercial for an SUV, they might see an interactive billboard that allows them to explore all available color options for the vehicle. This feature not only enhances the viewer’s experience but also facilitates a seamless transition from ad viewing to potential purchasing decisions.
Personal Ideas
From my perspective, interactive billboards represent a significant evolution in advertising, particularly in the streaming space. The ability for viewers to engage directly with the ad content can lead to higher conversion rates, as it transforms passive viewing into active participation. I believe that brands should leverage this format to create compelling and visually appealing interactive elements that resonate with their target audience.
Moreover, the potential for immediate action is a game-changer. By providing links to product catalogs or store locators, brands can capitalize on viewer interest right at the moment it is piqued. This immediacy can be particularly effective for time-sensitive promotions or new product launches.
Pause Ads
Pause ads are a unique advertising format on Tubi that appears when a viewer pauses a movie or TV show. Instead of simply freezing the stream, Tubi takes advantage of this moment by displaying a full-screen ad to viewers. This innovative approach transforms a brief pause into a valuable advertising opportunity.
Engagement Opportunities
Pause ads provide an excellent platform for brands to deliver a concise message to viewers at a moment when they are likely to be attentive. Since viewers are already engaged with the content, this is an ideal time to capture their interest with a compelling advertisement. Additionally, these ads often include a scannable QR code, inviting viewers to engage with the brand directly from their devices. This feature encourages immediate interaction, allowing viewers to learn more about the product or service being advertised.
For instance, if a viewer pauses a show to take a break, they might see a pause ad for a new snack brand, complete with a QR code that links to a special promotion or product information. This not only keeps the viewer engaged but also provides a seamless way for them to take action without interrupting their viewing experience.
Strategic Timing
The strategic timing of pause ads is another significant advantage. Viewers are often in a relaxed state when they pause content, making them more receptive to advertising messages. This moment can be leveraged to create a memorable impression, as brands can present their offerings in a context that feels less intrusive than traditional ad placements.
Brand Spotlight Sponsorships
Brand Spotlight Sponsorships offer advertisers a unique opportunity to “own” curated categories of licensed and original content on Tubi. This ad type allows brands to feature their name alongside evergreen and seasonal content categories, such as Tubi Kids, Valentine’s Day, or Holiday Hits. By associating their brand with popular content, advertisers can enhance visibility and create a stronger connection with viewers.
Exclusive Access and Co-Branding Opportunities
With Brand Spotlight Sponsorships, brands gain first dibs on the category’s primetime ad spots, ensuring that their messaging reaches viewers during peak viewing times. This exclusivity can significantly enhance brand recognition and recall, as viewers are more likely to remember the brand associated with their favorite content.
Additionally, brands benefit from unique co-branding initiatives. They can display their logo next to Tubi’s logo during ad spots, reinforcing their presence and credibility. This partnership not only elevates the brand’s visibility but also aligns it with Tubi’s reputation as a leading streaming platform.
Amplified Social Campaigns
Tubi also supports brands by amplifying associated social campaigns on popular platforms like Facebook, Twitter, and Instagram. This means that brands can leverage Tubi’s audience and reach to promote their messaging across multiple channels, creating a cohesive marketing strategy that maximizes impact. By integrating social media efforts with Tubi sponsorships, brands can engage with viewers in a more interactive and meaningful way.
Tubi Total Takeovers
If you’re looking to make a significant impact beyond Tubi Originals, a Tubi Total Takeover might be the perfect fit for your advertising strategy. This option allows brands to secure a substantial amount of ad space across Tubi’s entire content library for one day only. When viewers start a show, your video ad, accompanied by a custom billboard, will be the first thing they see, ensuring maximum visibility and engagement.
Key Features and Limitations
While Tubi Total Takeovers offer an impressive opportunity for brand exposure, there are some exceptions to consider. For instance, your ads may not always play as a pre-roll on TV shows from major traditional networks during primetime. This limitation is important to keep in mind, as it may affect the overall reach of your campaign during peak viewing hours. However, aside from this caveat, Tubi guarantees advertisers a 100% share of voice during a Total Takeover, meaning your brand will dominate the advertising space for that day.
Audience-Specific Advertising Packages
In addition to Total Takeovers, Tubi also offers audience-specific advertising packages that utilize a mix of ad formats to effectively reach targeted demographics. For example, the “Gamers Sponsorship” package specifically targets users who watch Tubi on their gaming consoles, employing billboard and video ads tailored to this audience. This targeted approach allows brands to connect with specific viewer segments, enhancing the relevance and effectiveness of their advertising efforts.
Best Practices for Advertising on Tubi
Advertising on Tubi can bring numerous benefits to brands, but it’s essential to follow a few best practices to ensure you start off on the right foot. Here are some important tips to keep in mind.
Identify and Understand Your Audience
Making the most of your Tubi ad investment requires an intricate understanding of your target audience. Advertisers can choose to reach audiences in two main ways:
Targeting Content Clusters: This method allows you to target viewers based on specific programs and the time of day, similar to traditional TV advertising. By aligning your ads with relevant content, you can enhance the likelihood of reaching viewers who are more likely to engage with your brand. For instance, if you’re promoting a family-oriented product, placing ads during family-friendly shows can increase relevance and viewer engagement.
Direct Audience Targeting: You can also target your audience directly using first and third-party data. This approach enables you to create more precise audience segments based on demographics, interests, and behaviors. By leveraging data analytics, you can identify key characteristics of your ideal customers and tailor your messaging accordingly.
The Importance of Detailed Customer Profiles
Typically, advertisers will see better results from precisely targeting audiences—but only if they can properly define their target audience and have the data to back it up. For example, if you’re trying to encourage viewers to download a financial services app, don’t simply target men under 40 because that “just seems right.” Instead, ask deeper questions such as:
What is my target consumer’s level of education?
What is their annual income?
Are they more likely to own their own home?
What financial habits do they exhibit?
Building highly detailed customer profiles using your own data about customers will help you maximize your success on Tubi. The more specific and informed your target is, the more likely you are to engage viewers who are genuinely interested in your product or service.
Longer Ads Aren’t Always Better
Marketers with a long history in TV advertising may be accustomed to producing 30-second ads by default, but it’s essential not to overlook the impact of shorter ad spots—specifically 6 and 15-second ads—on over-the-top (OTT) platforms like Tubi. The viewership of Tubi skews younger, and many members of Gen Z report having shorter attention spans than their older counterparts. This shift in viewing behavior necessitates a reevaluation of traditional ad lengths.
Experiment with Ad Lengths
We recommend that clients experiment with a range of different ad lengths and study the outcomes. For instance, you might discover that your 6-second mid-roll ads yield a better return on ad spend than a 30-second mid-roll ad. If that’s the case, there may be little justification for paying extra for more airtime. Shorter ads can deliver concise, impactful messages that resonate with viewers, especially in a fast-paced streaming environment where attention spans are limited.
Leverage Data Granularity
One of the strongest benefits of streaming platforms like Tubi is their innate data granularity and campaign measurement capabilities. This means that brands can track viewer engagement, ad performance, and conversion metrics in real-time. Consequently, brands risk leaving money on the table if they don’t have a plan for tracking and monitoring these metrics effectively.
To make the most of the data available, brands should set specific, measurable, attainable, relevant, and time-bound (SMART) goals for each campaign. By establishing clear objectives, brands can better assess the effectiveness of their ads and make informed decisions about future campaigns.
Optimize Through Creative Testing
In addition to setting SMART goals, brands should employ tactics like creative testing to optimize for those goals. Testing different ad lengths, messaging, and visuals can provide valuable insights into what resonates best with the audience. For example, you might find that a particular creative approach works exceptionally well in a shorter format but falls flat in a longer one.
By continuously analyzing performance data and adjusting strategies accordingly, brands can refine their advertising efforts to maximize impact and return on investment.
Measure and Test Ad Performance
To ensure the effectiveness of advertising campaigns on Tubi, brands must prioritize measuring and testing ad performance. On a basic level, brands can utilize Tubi’s proprietary technology to measure key metrics such as reach, engagement, and cost per mille (CPM) for their ads. This foundational data provides valuable insights into how well ads are performing on the platform.
Key Metrics to Monitor
Reach: Understanding how many unique viewers have seen your ads is crucial. This metric helps brands gauge the overall visibility of their campaigns and assess whether they are effectively reaching their target audience.
Engagement: Engagement metrics, such as click-through rates (CTR) and interaction rates, provide insights into how viewers are responding to the ads. High engagement levels indicate that the content resonates with the audience, while low engagement may signal the need for adjustments in messaging or creativity.
CPMs: Monitoring CPMs allows brands to evaluate the cost-effectiveness of their advertising efforts. By comparing CPMs across different ad formats and placements, brands can identify which strategies yield the best return on investment.
Integrating Tubi Data with Multichannel Strategies
In addition to using Tubi’s analytics, brands can feed this data into platform-agnostic measurement technology. This integration enables advertisers to understand how their Tubi investments impact their larger multichannel marketing strategy. By analyzing Tubi data alongside other marketing channels, brands can gain a holistic view of their advertising performance and make informed decisions about budget allocation and strategy adjustments.
Continuous Testing and Optimization
To maximize the effectiveness of Tubi ads, brands should adopt a culture of continuous testing and optimization. This involves experimenting with different ad creatives, formats, and targeting strategies to identify what works best. A/B testing can be particularly useful in determining which variations of an ad resonate more with viewers.
By regularly analyzing performance data and making data-driven adjustments, brands can refine their campaigns to improve engagement and conversion rates over time.
Is Tubi Advertising Worth It?
Tubi offers brands of all sizes a fantastic opportunity to break into the streaming advertising space or expand their reach to the ever-growing number of cord-cutters. With CPMs averaging around $20—or even less, if you partner with a streaming agency like Tinuiti—Tubi is likely to be a worthwhile investment for any advertiser with a focused, data-driven strategy.
The Value of Tubi Advertising
The platform’s unique demographic profile, which skews younger and more diverse than traditional TV audiences, presents a compelling case for brands looking to connect with hard-to-reach consumers. Additionally, Tubi’s non-skippable ads and high viewability rates enhance the likelihood that your message will be seen and remembered.
However, navigating the increasingly fractured streaming landscape can be challenging. With numerous platforms and ad formats available, brands must be strategic in their approach to ensure they maximize their advertising investments.
How Tinuiti Can Help?
If your brand is interested in advertising on Tubi but finds the streaming space a bit intimidating, Tinuiti can provide valuable assistance. We offer robust TV & Audio services through a dedicated team that can help you determine the best ways to invest in your streaming advertising budget. Our innovative buying tactics and strategic network relationships enable us to optimize your campaigns for maximum impact.
For brands that prefer to manage their own campaigns, our proprietary Bliss Point technology equips you with the tools needed to holistically evaluate the omnichannel impact of each dollar invested in Tubi and other advertising platforms. This technology allows you to track performance metrics, analyze data, and make informed decisions that enhance your advertising effectiveness.
Personal Thoughts
From my perspective, advertising on Tubi is a smart move for brands looking to tap into the growing streaming market. The platform’s competitive CPMs and unique audience demographics make it an attractive option for advertisers. However, I understand that the complexities of the streaming landscape can be daunting.
Partnering with an experienced agency like Tinuiti can alleviate some of that pressure. Their expertise in navigating the intricacies of streaming advertising can help brands make informed decisions and optimize their campaigns for better results.
Moreover, the availability of tools like Bliss Point technology empowers brands to take control of their advertising strategies while still benefiting from data-driven insights. This combination of agency support and proprietary technology can lead to more effective campaigns and a higher return on investment.