Ad-Supported Business Models: Still Viable in 2025? [Data Shows…]

Are ad-supported models still profitable in 2025? See the latest data on ad revenue, user retention, and sustainability.

For decades, businesses big and small have relied on advertising as a key revenue engine. From traditional print ads to today’s video and mobile formats, ad-supported models have helped deliver content, apps, entertainment, and services to people without charging them upfront. But in 2025, with more subscription models rising and user expectations shifting, a serious question arises: Are ad-supported business models still worth it?

1. 81% of global internet users access ad-supported content at least once per week

What This Tells Us

Even with the rise of premium platforms, a huge majority of people still interact with content that’s funded by advertising. Whether it’s watching a video on YouTube, streaming music on Spotify, or reading an online news article, ads are still very much a part of the user experience.

The fact that 8 out of 10 internet users are still actively engaging with ad-supported content weekly shows us that the model hasn’t lost its appeal. Instead of rejecting ads outright, users often see them as a fair trade for free access.

How This Applies To You

If you’re running a content-based business — be it a news website, an app, a podcast, or a video channel — this is great news. You don’t necessarily need to force users to pay. There’s still a big audience willing to watch or hear an ad, as long as the content you offer is worth it.

What You Can Do

  • Use this trend to build reach first. Focus on growing a large user base by keeping your core offering free and supported by ads.
  • Don’t overload your content with ads. Keep the ad experience smooth and non-intrusive. The key to retention is balance.
  • Test your monetization mix. You can always add premium, subscription, or microtransaction options later. But start where the audience already is — ad-supported access.

2. The digital advertising industry is expected to reach $836 billion in revenue by the end of 2025

What This Tells Us

That number is massive. It means advertisers are not pulling back. In fact, they’re doubling down.

 

 

Whether it’s display ads, video ads, influencer promotions, or app banners, businesses are spending more than ever to get in front of people online. Digital advertising continues to grow because it’s measurable, flexible, and global. And with AI and targeting tools getting smarter, the value of these ad dollars is going up.

How This Applies To You

If advertisers are spending more, that’s money flowing through platforms and content creators. Whether you’re a developer, publisher, or marketer, there’s a real opportunity to tap into this rising stream of revenue.

The trick is to understand where the money is moving and position your product or content in a way that attracts ad dollars. Are you on the platforms where spending is rising? Are you building content in the formats that get the most attention?

What You Can Do

  • Get on the right platforms. Whether it’s YouTube, TikTok, newsletters, or streaming apps, choose platforms where ad spend is growing.
  • Track CPM trends. Understand which content types bring the highest payouts so you can focus on what performs.
  • Use programmatic ad networks. These platforms help you access global ad spend without having to do manual sales.

3. 63% of U.S. adults say they prefer free, ad-supported services over paid, ad-free alternatives

What This Tells Us

A majority of people, when given a choice, still go for free — even if it comes with ads. That tells us something important about user psychology: the pain of spending money is often greater than the annoyance of sitting through an ad.

It also reflects that people are now used to this model. From streaming to news to mobile apps, ad-supported models are part of the everyday media diet. And as inflation and subscription fatigue set in, this preference might even increase.

How This Applies To You

If you’re building a service or launching a content platform, this stat is a clear sign: offering a free, ad-supported version could bring in more users and grow faster than a paid-only product.

It’s not about avoiding subscriptions altogether. But letting users experience the value first, for free, increases your odds of converting them later.

What You Can Do

  • Offer a free tier. Even if you plan to go subscription later, start with an ad-supported model to build trust and a user base.
  • Gather feedback. Use your free users to understand what features or upgrades they’d pay for.
  • Educate users on the value trade. Remind them that ads keep the service free. Transparency helps reduce resistance.

4. 52% of video streaming consumers in 2025 use at least one ad-supported platform (AVOD)

What This Tells Us

AVOD — or Ad-supported Video On Demand — has gone from being a budget alternative to a mainstream choice. Over half of viewers now use at least one such service.

Platforms like Pluto TV, Tubi, and even YouTube fall into this category. These platforms don’t ask for your credit card — they just play a few ads during content.

The convenience and cost-saving appeal is strong, especially as the average consumer now juggles multiple subscriptions.

How This Applies To You

If you’re in media or entertainment, AVOD isn’t just a secondary option anymore — it might be your best path to scale. People are open to it, and advertisers are eager to reach them.

Even if you’re not in video, this behavior shows a bigger trend: people are looking for flexible, cost-free ways to access quality content. That gives you room to experiment.

What You Can Do

  • Consider AVOD distribution. If you produce video content, explore AVOD platforms as a way to monetize without building your own app.
  • Model your content like TV. Short breaks, episodic formats, and mid-roll ads still work well in AVOD.
  • Use engagement data. AVOD gives you access to user watch behavior, which helps you optimize future content and ad placements.

5. YouTube generated over $45 billion in ad revenue in 2024 alone

What This Tells Us

YouTube isn’t just a content platform. It’s one of the largest advertising ecosystems in the world. With $45 billion in ad revenue, it’s a clear leader in showing that ad-supported business models still work — and work well — at scale.

And it’s not just YouTube itself making money. Creators get a large chunk of that through the YouTube Partner Program, which shares ad revenue with content makers.

How This Applies To You

If you’ve ever doubted whether creating free content can lead to real money, YouTube’s numbers should clear that up. Whether you’re a solo creator or a brand with a media team, YouTube offers a low-barrier way to earn from advertising.

This model works especially well if your content educates, entertains, or solves problems. Ads can run before, during, or after your videos — and you get paid based on views and engagement.

What You Can Do

  • Start creating regularly. Even simple, helpful videos can earn well with consistent uploads.
  • Focus on watch time. Longer engagement leads to better ad placements and higher earnings.
  • Join the Partner Program. As soon as you meet the criteria, enable monetization to start earning from ads.

6. 74% of global app revenue comes from advertising rather than in-app purchases

What This Tells Us

While in-app purchases and subscriptions often get the spotlight, the truth is, most of the money made in mobile apps today still comes from advertising. That’s nearly three-quarters of all app revenue — a huge number.

This stat highlights a surprising reality: people are more comfortable watching ads than spending small amounts on premium features or add-ons. The freemium model continues to win because it removes all the friction. No payment details. No hesitation. Just open the app and go.

How This Applies To You

If you’re developing or managing an app, and your monetization plan relies only on purchases or subscriptions, you might be leaving money on the table. In most markets, especially emerging ones, people hesitate to pay upfront. Ads, on the other hand, feel free.

The ad-supported model allows you to attract a much wider audience, and if implemented smartly, it won’t ruin the user experience.

What You Can Do

  • Add rewarded video ads. These are user-friendly and can be integrated with bonuses or upgrades. Users watch willingly.
  • Use native ad placements. Ads that blend into the app design don’t interrupt the experience and feel more organic.
  • Track ad performance. Monitor metrics like retention and churn. If ads start hurting user engagement, scale them back or adjust placement.

7. 38% of Gen Z users are more willing to watch ads in exchange for free content than millennials

What This Tells Us

Generation Z has grown up with ad-supported platforms. For them, watching an ad to unlock a video, article, or feature is normal. In fact, they’re more likely than older users to see it as a fair exchange.

Millennials, on the other hand, are more likely to opt for subscriptions or ad-free versions. This generational difference affects how you design and market your product.

How This Applies To You

If your audience includes Gen Z — whether you’re building an app, a community, a media site, or a tool — you can lean more confidently into ad-based monetization. The data shows they’re open to it, as long as the experience is smooth and the content is worth it.

But you also need to get creative. Gen Z users are good at spotting irrelevant or annoying ads. If it feels forced, they’ll bounce.

What You Can Do

  • Personalize ads. Use data to serve more relevant ads based on user behavior or interests.
  • Keep it snappy. Gen Z attention spans are short. Short, skippable, or interactive ads work better.
  • Give control. Let users choose to watch an ad to unlock something, rather than forcing it. Choice increases satisfaction.

8. 49% of publishers say ad revenue makes up more than half their total income in 2025

What This Tells Us

Despite the buzz around subscriptions, memberships, and donations, ads are still the financial backbone for nearly half of publishers. Whether it’s online magazines, digital newsrooms, or niche blogs, advertising continues to be a key source of revenue.

Publishers have had to adapt over the years. They’ve gone from traditional banners to more dynamic and targeted options. Still, the foundation remains the same: create content, attract an audience, serve relevant ads.

How This Applies To You

If you’re running a content-focused business, don’t feel like you have to abandon advertising. While it’s smart to diversify income streams, ads can still carry a major portion of your revenue — especially with the right mix of quality content and audience insights.

The goal is to find the balance: maximizing ad income without pushing your audience away.

What You Can Do

  • Segment your audience. Tailor ad types and placements to different reader profiles for higher engagement.
  • Experiment with formats. Try out native ads, branded content, and affiliate placements alongside traditional banners.
  • Bundle ads with other offers. If you have a newsletter or paid tier, include premium ad options for sponsors or partners.

9. Ad blockers are used by only 16% of mobile users in 2025, down from 24% in 2020

What This Tells Us

Ad blockers were once seen as a major threat to the future of digital advertising. But the tide is turning. On mobile devices, which now dominate global traffic, fewer people are using blockers than ever before.

That shift tells us a few things: users are more accepting of mobile ads, blockers are harder to install or maintain on mobile, and most importantly — ad quality has improved. When ads are less intrusive and more relevant, people are less likely to block them.

How This Applies To You

If mobile is your main platform — and for most businesses it is — this stat is excellent news. Your ads are more likely to reach users than they were five years ago. But that doesn’t mean you should get lazy with placement.

Ads that interrupt or annoy can still drive users away. The goal now is to be seen, without being in the way.

What You Can Do

  • Optimize ad frequency. Too many ads per session can lead to fatigue. Keep the ratio low and user-first.
  • A/B test ad types. Try static vs. video, interstitial vs. banner, and measure retention impacts.
  • Lean into quality networks. High-end ad networks usually show cleaner, better-targeted ads that users are less likely to dislike.

10. CTV (Connected TV) ad spend reached $38 billion globally in 2024 and is projected to grow 15% in 2025

What This Tells Us

Connected TV is booming. That includes everything from smart TVs to streaming devices and apps like Hulu, Roku, and Tubi. Advertisers are pouring money into these platforms because they offer large, engaged audiences — but without the high costs of traditional TV.

And unlike old-school TV, CTV allows for better targeting, smarter tracking, and flexible budgets. This shift is pulling ad dollars away from cable and putting it in the hands of digital platforms and content creators.

How This Applies To You

If you’re in video or entertainment — or even if you just run a brand with storytelling potential — CTV is a playground worth exploring. You don’t need a massive production budget either. Mid-sized creators and small businesses can now run TV-quality campaigns for far less than before.

This also opens the door for more partnerships and brand deals across streaming platforms.

What You Can Do

  • Create high-quality video content. If you’re a creator, consider adapting your content for larger screens and longer formats.
  • Explore CTV ad networks. Platforms like The Trade Desk or Magnite let you run ads on streaming services without going direct.
  • Leverage storytelling. CTV viewers engage with narrative formats. Think beyond short-form — focus on brand-building content.

11. 70% of ad revenue for digital news outlets comes from programmatic advertising

What This Tells Us

Programmatic advertising has become the backbone of how digital ads are bought and sold. It automates the process using data and algorithms, making it faster and more efficient. For digital news outlets, this model is now responsible for the vast majority of their ad income.

That 70% figure isn’t just a nice-to-know stat. It shows how deeply embedded automation is in modern media revenue. Instead of depending on direct sales teams or manual deals, publishers are increasingly leaning on real-time bidding and demand-side platforms (DSPs) to fill their ad inventory.

How This Applies To You

Whether you’re a news site, blog, or niche publication, programmatic advertising should be part of your monetization mix. It’s scalable, low-maintenance once set up, and gives you access to a wider pool of advertisers.

However, it also means you need to be thoughtful about how your site is structured, how fast it loads, and what kind of audience you attract — because these factors influence how much your inventory is worth.

What You Can Do

  • Work with a reputable SSP. A supply-side platform like Google Ad Manager or PubMatic can handle your inventory and maximize returns.
  • Segment your content. Break content into categories with known advertiser interest — like finance, health, or tech — to attract higher bids.
  • Improve site speed. Fast-loading pages rank higher and also get better performance scores in ad networks.

12. 55% of all podcast revenue is ad-driven, expected to surpass $2.5 billion in 2025

What This Tells Us

Podcasts have matured from niche hobbies to powerful media platforms. And more than half the money flowing into this space comes from ads. Sponsors love the format because it delivers engaged, often loyal listeners — and podcast hosts tend to have strong personal influence.

The projected growth to over $2.5 billion in ad revenue this year shows advertisers are investing in this space at scale. And that’s not just for the big names. Micro and mid-level shows are increasingly securing sponsorships through dynamic ad insertion and programmatic marketplaces.

The projected growth to over $2.5 billion in ad revenue this year shows advertisers are investing in this space at scale. And that’s not just for the big names. Micro and mid-level shows are increasingly securing sponsorships through dynamic ad insertion and programmatic marketplaces.

How This Applies To You

If you run a podcast — or are thinking of starting one — ad-supported revenue can absolutely work. You don’t need a million downloads per episode. What you need is a clear audience profile and consistent production.

Even niche podcasts with a few thousand downloads can land sponsors if the content is targeted and the audience is valuable.

What You Can Do

  • Join podcast ad networks. Platforms like Acast, Podbean, and Spotify Ads can match you with sponsors without much manual effort.
  • Use dynamic ad insertion. This allows you to update or rotate ads, giving you more flexibility and long-term earning potential.
  • Start with affiliate ads. If you’re small, promote tools or products you love with affiliate links and earn per action.

13. 80% of online gaming revenue in mobile markets is driven by ads

What This Tells Us

Mobile games are big business — and advertising is what makes them run. A huge 80% of the revenue comes not from purchases or upgrades, but from ads. This includes rewarded video ads, interstitials, banners, and playable previews.

Gamers may not like every ad they see, but the exchange is clear: watch an ad, get free content. This model has been refined over the years to feel like a natural part of the game, especially in free-to-play titles.

How This Applies To You

If you’re in the gaming industry — whether you’re an indie developer or part of a larger studio — this stat is proof that ads aren’t just viable, they’re essential. In many cases, they outperform in-app purchases in both scale and user retention.

But gamers are a sharp crowd. They’ll notice if your ad strategy gets in the way of gameplay.

What You Can Do

  • Integrate rewarded ads. Let players watch a short ad to revive, gain currency, or unlock levels. This increases engagement.
  • Avoid disruptive placements. Limit forced ads between gameplay. Keep it optional or tied to rewards.
  • Balance frequency and fun. Show ads often enough to generate revenue, but not so much that it drives players away.

14. TikTok’s global ad revenue crossed $20 billion in 2024, with a 34% YoY growth

What This Tells Us

TikTok is more than a short-form video app. It’s now a massive ad ecosystem. With $20 billion in revenue last year and still climbing, it’s become a preferred platform for brands wanting to reach younger, engaged audiences.

Unlike traditional ads, TikTok content feels native. Ads are often indistinguishable from regular posts — and that’s by design. This approach increases engagement and lowers resistance.

TikTok’s growth also shows how ad-supported content can thrive when it’s built on creativity and authenticity.

How This Applies To You

Whether you’re a creator, brand, or marketer, TikTok deserves your attention. It’s where trends start, and where younger users spend a lot of time. Even small businesses can run highly targeted ads on a limited budget.

If you can create content that entertains, educates, or inspires, you can build a presence and monetize with ads, sponsorships, or affiliate links.

What You Can Do

  • Use TikTok Ads Manager. Launch low-cost campaigns to test creative ideas and build traffic to your site or store.
  • Create ad-like content. Make videos that entertain first, sell second. Authenticity wins on this platform.
  • Partner with micro-creators. Influencers with 10K–100K followers often convert better than bigger names.

15. 59% of consumers are okay with personalized ads if it means getting free content

What This Tells Us

Privacy is important, but context matters. When users understand that personalization helps fund free experiences, more than half are willing to accept it. That 59% figure shows that transparency and relevance go a long way.

People don’t hate ads — they hate irrelevant or creepy ads. When you can show the right message at the right time, it feels helpful, not annoying.

This stat reveals a key user mindset: they’ll tolerate tracking, cookies, or custom targeting, if the trade-off is fair.

How This Applies To You

If you’re hesitant to use personalization features in your marketing or ad setup, this data should give you confidence. As long as you’re transparent and respectful, personalization can actually improve engagement and outcomes.

And with tools now offering advanced targeting without breaching user trust, there are smart ways to get the benefits of personalization without overstepping.

What You Can Do

  • Be clear about tracking. Use cookie banners and policies that are honest and easy to understand.
  • Segment your audiences. Group users by behavior, not personal identity, for smarter and safer targeting.
  • Use contextual ads. These match ad content to the page or video topic instead of personal data — and they perform well.

16. Facebook/Meta earned $131 billion in ad revenue in 2024, showing continued dependence on the model

What This Tells Us

Despite all the talk about the metaverse, privacy updates, and changes in user behavior, Meta (formerly Facebook) remains one of the biggest ad-powered machines in the world. $131 billion in ad revenue in just one year proves that social media — when paired with ads — still delivers massive financial returns.

This revenue isn’t just from big brands. Small businesses make up a huge chunk of ad spend on Meta platforms, thanks to the easy-to-use tools and precise audience targeting.

This revenue isn't just from big brands. Small businesses make up a huge chunk of ad spend on Meta platforms, thanks to the easy-to-use tools and precise audience targeting.

How This Applies To You

This stat isn’t just about Meta’s success. It’s about how your business can tap into that same infrastructure. Facebook, Instagram, and WhatsApp offer ad placements that reach billions of users across devices, interests, and regions.

If you haven’t made Meta ads part of your monetization or growth strategy, you might be missing out on high-quality traffic, leads, and conversions — whether you’re a creator, a startup, or an ecommerce brand.

What You Can Do

  • Run small experiments. Start with a $5 or $10 daily ad budget. Test different audiences and messages to see what works.
  • Use lookalike audiences. Meta lets you target people similar to your current fans or customers — increasing the chances of clicks and conversions.
  • Install the pixel. Add Meta’s tracking pixel to your site or store to collect better data and optimize campaigns.

17. 61% of AVOD users said they would cancel a streaming service if it removed the free, ad-supported tier

What This Tells Us

This is a huge signal that users don’t just accept ads — they expect the option. Over half of users would leave a platform if they were forced to pay without any free, ad-supported choice. That shows just how important flexibility is in today’s digital economy.

AVOD (Ad-supported Video on Demand) gives users control. They don’t mind ads if they can watch for free. But take away that choice, and they’ll walk.

How This Applies To You

If you offer any kind of digital product — from content to SaaS to streaming — consider adding or keeping a free, ad-supported option. For many people, especially in price-sensitive segments, that option is what gets them in the door.

You don’t have to give away everything. But offering something for free with ads can help you scale, collect feedback, and build brand trust faster.

What You Can Do

  • Create a “freemium” tier. Offer limited features or access for free, with ads, and premium options for paying users.
  • Let users upgrade ad-free. Give them the option to remove ads for a small monthly fee if they prefer.
  • Highlight the trade. Explain that ads support free access. When users know why, they’re less likely to complain.

18. 27% of total ad budgets are now allocated to influencer and creator-based platforms

What This Tells Us

Influencers are no longer a side tactic — they’re a core part of the advertising world. Over a quarter of total ad budgets are now flowing to creators on platforms like Instagram, TikTok, YouTube, and Twitch.

This is because audiences trust creators more than traditional ads. A product mention from a familiar face feels more personal and believable. And with more tools now available, brands can partner with influencers at all levels — from nano to mega.

How This Applies To You

If you’re a creator, this is your green light. Brands are actively looking to collaborate with voices that align with their message. You don’t need millions of followers. You need engagement, authenticity, and consistency.

If you’re a business or marketer, this is your cue to shift some of your ad spend into creator partnerships. It’s often cheaper and more effective than traditional paid ads.

What You Can Do

  • Use influencer marketplaces. Tools like Aspire, Upfluence, and Collabstr connect brands and creators with ease.
  • Track conversions. Use UTM links or discount codes to see what creators are driving actual results.
  • Focus on micro-influencers. Often, creators with 10K–100K followers have tighter communities and better ROI.

19. YouTube Shorts monetization via ads reached $3 billion in payouts to creators in the past year

What This Tells Us

Short-form video isn’t just fun — it’s paying real money now. YouTube Shorts, which started as a TikTok competitor, is now fully monetized through ad sharing. And creators have already earned billions from it.

That changes the game for video creators. You no longer have to rely on long-form content or brand deals to earn. Short, snappy videos — often under a minute — can now directly generate income through the YouTube Partner Program.

How This Applies To You

If you’re trying to build an audience or brand online, Shorts are a fast and powerful way to get discovered. They appear in different feeds, they’re favored by the algorithm, and they now pay.

The best part? You don’t need expensive equipment or complex scripts. Just your phone, a story, and consistency.

The best part? You don’t need expensive equipment or complex scripts. Just your phone, a story, and consistency.

What You Can Do

  • Post 3–5 Shorts per week. Frequent uploads help you test content ideas and boost algorithm reach.
  • Include CTAs. End each video with a simple call to action — like follow, watch full video, or visit your page.
  • Monetize early. As soon as you qualify, apply for Shorts monetization to start earning from views.

20. Spotify reported $1.8 billion in ad revenue in 2024, making up 18% of its total income

What This Tells Us

Spotify is widely known as a subscription platform, but its ad-supported tier is pulling real weight. Nearly a fifth of its total income now comes from ads. That’s $1.8 billion in revenue — and growing.

With new features like AI voice ads, dynamic insertion, and video ads in podcasts, Spotify is showing that audio content can be just as ad-friendly as video or web content.

How This Applies To You

If you’re an audio creator — from podcasters to musicians — there’s a clear path to monetize your content with ads, even if you don’t want to charge your audience. Spotify is actively building tools to support creators in earning through sponsorships and network ads.

For advertisers, Spotify offers a targeted, immersive ad experience where users are often engaged with headphones or while focused.

What You Can Do

  • Distribute widely. Make sure your podcast or audio content is available on Spotify’s ad network.
  • Use video and voice ads. Spotify is experimenting with new ad types — test them to stand out.
  • Engage Spotify’s creator tools. From Anchor to Ads Studio, use the ecosystem to manage ads and track performance.

21. 45% of all new mobile apps in 2025 use ad-supported models exclusively

What This Tells Us

Almost half of all new mobile apps being launched in 2025 are going all-in on ad-supported monetization. That’s a strong signal that new developers and startups are finding this model both practical and profitable — especially for user acquisition and retention.

Why? It’s simple. Ads remove friction. Users don’t have to pull out a credit card or subscribe right away. They just download and start using — and every impression, click, or view adds to the app’s bottom line.

How This Applies To You

If you’re building a new app — whether it’s a utility, game, social tool, or educational product — starting with an ad-supported approach can give you more traction. You can always add paid upgrades later, but free access helps you grow fast in competitive app stores.

This model also works well in emerging markets, where users are far more likely to engage with free content and less likely to pay upfront.

What You Can Do

  • Monetize early. Don’t wait to add ads. Integrate them from version 1 so you can learn what works.
  • Choose your SDK carefully. Use trusted ad SDKs like AdMob or Unity Ads that won’t slow down your app.
  • Offer value before asking for money. Let users experience real value first, then offer in-app purchases or premium upgrades.

22. 72% of digital publishers are expanding ad partnerships rather than moving to subscriptions

What This Tells Us

More than two-thirds of digital publishers are doubling down on advertising instead of switching to subscription models. That tells us that while subscriptions sound attractive, the reality is — most users don’t want to pay for every website they visit.

Instead, publishers are finding smarter ways to make advertising work — through sponsored content, programmatic deals, native ads, and affiliate partnerships.

This shows that ads are not dying. They’re evolving.

How This Applies To You

If you manage a website or blog, you don’t need to race toward paywalls just because others are doing it. The audience is still out there — and they’re still open to ads, especially if your content is relevant and well-placed.

In fact, working directly with brands or networks can often pay more than small-scale subscriptions. The key is quality and targeting.

What You Can Do

  • Build brand relationships. Reach out to advertisers directly for custom campaigns or sponsored posts.
  • Use affiliate marketing. Promote relevant tools or products in your content and earn from clicks or purchases.
  • Invest in better ad experiences. Clean, well-placed ads perform better and keep readers coming back.

23. 47% of ecommerce platforms now offer embedded video and ad-supported content to boost retention

What This Tells Us

The lines between ecommerce and content are blurring. Almost half of all ecommerce platforms are now adding video content — reviews, tutorials, explainers — and using ads to both engage users and earn more.

This strategy boosts retention because users don’t just shop — they consume content. And as they watch, they’re either shown ads or encouraged to explore products being featured.

It’s content as commerce — and it’s powerful.

How This Applies To You

If you run an online store or a product-based business, think beyond just listing items. Consider adding helpful or entertaining videos that not only explain what you sell but also create opportunities for ad monetization.

Even if you don’t want to run ads, content can help keep people on your site longer, which boosts SEO and conversion rates.

Even if you don’t want to run ads, content can help keep people on your site longer, which boosts SEO and conversion rates.

What You Can Do

  • Start with product videos. Show how your product works in 30–60 second clips. Keep it simple and honest.
  • Add YouTube embeds. If you have content on YouTube, embed it on your product pages — and earn from views.
  • Partner with creators. Let influencers or customers create review-style videos that you can host on your site.

24. Programmatic ad transactions account for 91% of digital ad spend in the U.S. in 2025

What This Tells Us

In the U.S., nearly all digital ad spending now happens through programmatic platforms. That means ads are being bought and sold automatically through auctions, data signals, and smart bidding tools — with very little human involvement.

This level of automation is not just about speed. It’s about precision. Advertisers can target by behavior, device, geography, or context. And publishers can fill inventory at scale, without constant manual negotiations.

How This Applies To You

If you’re trying to monetize content or an app, ignoring programmatic ad networks is no longer an option. It’s the standard — and it’s likely where most of your future ad revenue will come from.

Whether you’re a solo blogger or a large media company, getting set up with programmatic infrastructure will unlock better fill rates and higher payouts.

What You Can Do

  • Use header bidding. This setup allows multiple ad networks to compete for each impression, increasing your earnings.
  • Work with an ad ops partner. If you’re unsure about setup, hire a team or consultant to handle programmatic implementation.
  • Segment inventory. Break your ad space into types (homepage, article, mobile, desktop) for smarter optimization.

25. Native advertising has a 53% higher click-through rate than traditional display ads

What This Tells Us

Native ads — the kind that look like part of the content — perform much better than traditional display banners. A 53% higher click-through rate shows that people respond more when ads are integrated naturally.

This isn’t surprising. Most users have learned to ignore banners. But when an ad feels like an article, a video, or a recommended product, they’re more likely to pay attention.

It’s less about tricking users and more about offering useful, relevant content in a format that fits.

How This Applies To You

If you rely on advertising to earn income — whether on your blog, podcast, newsletter, or app — switching to native formats can improve your earnings without increasing your ad volume.

And if you’re an advertiser, running native campaigns gives you more engagement and better returns.

What You Can Do

  • Work with native ad platforms. Taboola, Outbrain, and Nativo are examples that integrate with your site and deliver native placements.
  • Use sponsored content. Write helpful articles or reviews that feature products you support or sell.
  • Test placement and format. Try different native placements — inline, at the bottom, in-feed — and track what performs best.

26. 62% of users say they’ve discovered a new brand or product through an ad on a free app

What This Tells Us

More than half of users have found new products just by interacting with ads while using free apps. That means ads aren’t just noise — they’re a discovery tool. In a world where attention is fragmented and consumers are harder to reach, this is incredibly valuable.

Free apps, especially on mobile, offer an environment where users are relaxed and open to exploring. Ads in these contexts feel less like interruptions and more like gentle suggestions — when done right.

How This Applies To You

Whether you’re a brand trying to drive awareness or an app creator monetizing through ads, this stat is a goldmine. It tells you that ads work — not just for revenue, but for product discovery. And more importantly, users don’t mind.

If your product or brand isn’t currently advertising on apps, you might be missing out on low-cost, high-intent traffic. Likewise, if you build apps, offering advertisers placements that support discovery (like native cards or story ads) can increase your ad earnings and retention.

If your product or brand isn’t currently advertising on apps, you might be missing out on low-cost, high-intent traffic. Likewise, if you build apps, offering advertisers placements that support discovery (like native cards or story ads) can increase your ad earnings and retention.

What You Can Do

  • Try app-based ad campaigns. Platforms like Google UAC or TikTok Ads let you place your brand inside popular apps.
  • Highlight your brand story. Discovery ads work best when they spark curiosity. Use visuals and short text to tell your “why.”
  • Create seamless ad units. If you’re the publisher, use placements that fit naturally into app usage — not full-page pop-ups that interrupt flow.

27. 3 out of 4 free-to-play mobile games use rewarded video ads as the primary revenue generator

What This Tells Us

Rewarded video ads have become the dominant monetization strategy for mobile games — and for good reason. These ads offer a value exchange: watch an ad, get something useful. It’s simple, non-invasive, and surprisingly popular with users.

This format works especially well in games, where rewards like extra lives, power-ups, or currency feel like wins. But the same idea — trading attention for value — applies beyond gaming too.

How This Applies To You

If you’re building a free product — especially one with repeat use or gamified features — consider implementing rewarded video ads. You don’t need to be a game studio to use this strategy.

From fitness to language learning to productivity, any app that can offer value in exchange for watching an ad can make this model work.

What You Can Do

  • Define clear rewards. Offer users something they truly want — not just filler — in exchange for watching.
  • Cap frequency. Limit how many times per hour a user can watch to keep the experience positive.
  • Use trusted ad partners. Platforms like IronSource, AdMob, and Unity offer solid rewarded video SDKs.

28. 58% of marketers rate ad-supported models as more scalable than subscription-based ones

What This Tells Us

Over half of marketers believe that ad-supported models offer better scale than subscriptions. Why? Because growth isn’t limited by user willingness to pay.

Subscriptions can cap your audience — only those willing or able to pay can access your content or tools. Ads, on the other hand, allow you to serve everyone and still earn from every interaction.

This makes ad-supported strategies especially attractive for businesses looking to go global or serve price-sensitive markets.

How This Applies To You

If your growth plans involve reaching large audiences — especially in countries where subscriptions are less common — ad-supported is your friend. You can build brand awareness, traction, and trust before asking users to spend.

The key is balancing scale with sustainability. Free doesn’t mean cheap — it means funded differently.

What You Can Do

  • Use ads to power top-of-funnel. Let free users experience your service and build habits before introducing paid features.
  • Consider a hybrid model. Offer core services free with ads, and upsell extras to high-value users later.
  • Track CAC vs. LTV. Monitor how much it costs to acquire users via free access vs. what you earn from ads. Adjust as needed.

29. The average CPM (cost per mille) for CTV ads rose to $32 in early 2025

What This Tells Us

A $32 CPM (cost per thousand impressions) is a premium rate — and that’s what advertisers are now paying on Connected TV (CTV) platforms. That’s significantly higher than the typical CPM for mobile or desktop ads, which often fall in the $5–$15 range.

Why the spike? Because CTV combines the power of traditional TV (large screen, lean-back experience) with the targeting and tracking of digital. It’s a high-attention environment with fewer distractions, which means better ad performance and higher value.

How This Applies To You

If you’re in video — whether you’re a YouTube creator, indie filmmaker, or brand storyteller — CTV represents a high-earning opportunity. You don’t have to produce Netflix-quality content. Niche shows, tutorials, and even livestreams can work.

Even if you’re not in video, this stat tells you something about user behavior: big screens still matter, and premium attention is worth paying for.

What You Can Do

  • Distribute to CTV platforms. Publish your videos on apps like Roku, Fire TV, or via YouTube’s CTV channels.
  • Sell directly to brands. If you own the content, you can pitch premium ad slots to sponsors looking for video inventory.
  • Optimize for screen size. Design video content that looks good on larger displays — crisp resolution, clean graphics, and slower pacing.

30. 66% of digital content startups launched in the past two years have chosen ad-based monetization

What This Tells Us

Two-thirds of new digital content startups are opting to launch with ad-based revenue. This tells us that the model is alive and well — not just with legacy publishers, but with fresh startups too.

From niche blogs to newsletters, community sites to video platforms, new players are choosing advertising as their initial or core revenue stream. It helps with fast scaling, reduces friction for new users, and avoids early subscription fatigue.

In many cases, these startups later layer in subscriptions, donations, or product sales — but ads remain the foundation.

How This Applies To You

If you’re thinking about starting a content-based business, this is a key insight: you don’t need to lock everything behind a paywall to be sustainable. Ads can carry you through your growth phase, and sometimes beyond.

This also tells you that your competition is likely using this model — and possibly scaling faster because of it.

What You Can Do

  • Start free, monetize with ads. Focus on quality and reach first. Use ad revenue to sustain operations early on.
  • Keep monetization flexible. Leave room to add subscriptions, courses, or services once your audience is loyal.
  • Track ad impact early. Use analytics to understand which pages or content types generate the most revenue.

Conclusion

Ad-supported business models are not only still viable in 2025 — they’re thriving, evolving, and expanding across industries. From mobile apps to podcasts, video streaming to ecommerce, advertising remains a core pillar of monetization.

Scroll to Top