When Tubi made its debut in the U.K. nearly two months ago, everyone expected it to make a splash with advertisers. Given its impressive track record of outpacing some hefty competitors in the past 18 months, the bar was set high.
However, the reality has been more of a gentle ripple than a tidal wave. Tubi’s efforts to woo advertisers have been mooted.
Execs there are currently in full market-scout mode, meeting a few key players and figuring out how to stand out in an arena bursting at the seams with options.
“It became clear they’re still working through their exact U.K. sales route to market at this time, so the presentation was focused on who they are and their upcoming slate,” said Tom Healey, media director at Wake The Bear, whose team has been in contact with a U.S.-based sales representative to assess Tubi’s proposition.
It might seem strange for an ad-supported streamer to launch without a clear game plan. But with the streaming landscape as congested as it is, waiting on the sidelines could mean missing the chance to build a solid customer base. Better to dive in and develop the ad business alongside growing the subscriber base.
And there’s plenty of room for growth, given where Tubi’s ad business currently stands. It partnered with Magnite, a streaming ad specialist, to handle programmatic ad sales, though advertisers can also access Tubi’s premium ad inventory through private marketplaces. Plus, advertisers can refine their targeting with contextual options and reach Google users on Tubi.
Basically, it’s pretty much the standard playbook for any streaming company these days: lay the groundwork for a solid ad business first, then add the fancy extras. But this approach leaves a lot to the imagination for advertisers, who may be left wondering what’s next.
For Healey, unique monthly users, sharper targeting (such as audience, genre, content, device, location, weather), data capabilities (can Tubi harness Boots, Nectar or Experian third party data) and pricing are all “non-negotiable” before considering investment.
“The U.K. CTV market already has mature players with significant reach from broadcaster VOD to SVOD ad-tiers, so there’s no requirement to rush to spend with any new entrant,” he said. “Not until we’re confident of the value addition, and that they deliver an incremental audience at a cost efficiency in line with the wider U.K. market.”
Tubi’s executives might counter that the streamer already offers something unique. Unlike its subscription-based giants like Netflix and Disney+, it has zeroed in on personalization, by highlighting popular content that’s about to leave and lets users create custom channels to pin their favorite content, sparing them the hassle of constant searching.
“Tubi will have to offer something unique,” said Ben Foster, managing partner of digital at The Kite Factory. “They are fighting for the same budget pot as SVOD, BVOD and even linear spend, so agencies won’t be recommending the platform until they see scale and quality inventory. Until viewing figures are robust and the selection of films and programming becomes more premium, Tubi won’t make it on to many plans.”
This strategy seems to be paying off: it’s not just about boosting subscriber numbers but enhancing viewership by focusing on user experience, targeting specific demographics, capitalizing on its free model, and investing in a diverse range of content and discovery features.
In fact, Tubi has skyrocketed in popularity over the last 18 months, solidifying its spot as a streaming powerhouse in the U.S. It now consistently outshines Peacock, Max, Paramount+, and Apple TV+ in total viewing time, according to Nielsen data cited by The New York Times earlier this summer. It’s even closing in on Disney+. The only platforms still holding the top spots are YouTube, Netflix, Amazon, and Hulu.
“It’s not as if the U.S. and Canada are non-competitive landscapes, and Tubi has really risen to the top of both of those markets, so we know that we have some playbooks that we’ll then localize to really use around executing in this market,” said David Salmon, evp and managing director – international at Tubi.
This is why the platform enlisted VaynerMedia to create its “Watch what you actually want to watch” brand awareness campaign for a six-week period, starting mid July.
“From what we’ve heard from the client [Tubi], there will be some subsequent activity to follow, such as more bespoke campaigns, looking at particular shows on the platform,” said Aliraza Ali, associate director of media at VaynerMedia.
For its U.K. entry, Tubi launched with more than 20,000 movies and TV shows, featuring content from Disney, Lionsgate, NBCUniversal, and Sony Pictures Entertainment as well as a slate of exclusive Tubi Originals.
Though that’s just a sliver of the 240,000 titles available in the U.S., the pitch to advertisers remains consistent. According to a one-pager shared with U.K. media buyers, Tubi promotes its content as “culturally relevant in a brand-safe environment,” keeping the focus on quality and safety.
As Salmon put it, the team talks about the platform as having “the best of YouTube’s personalization, with the brand safety of Netflix’s catalog” — so advertisers have the reassurance that all the content goes through standards and practices. “We make sure it’s not just appropriate for our audience, but also that it’s appropriate for advertisers,” he added.
Whether this is enough for advertisers to overlook Tubi’s limited reach remains to be seen. However, it’s a hurdle the streamer will need to address sooner or later. As Tubi grows, it will face escalating complexities and costs in ad revenue, content licensing, technical infrastructure, user acquisition, and market competition. Balancing these challenges while keeping users satisfied and staying profitable will be crucial for Tubi to maintain its growth and edge in the crowded ad-supported streaming landscape.
“It’s going to be competitive, and we know that we’re going to need to be really thoughtful about content,” said Salmon. “We’re going to need to be really consistent with our brand, and we’re going to have to create these moments of customer affection that we think we’re good at doing. But nonetheless, we’ll have to prove that out over time and we’re really committed to this market and in making that happen.”
