Global Advertising Video On Demand Market Size Likely to Reach at a CAGR of 7.2% By 2033

As per the current market research conducted by the CMI Team, the global Advertising Video On Demand Market size is expected to record a CAGR of 7.2% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 37,690.1 Million. By 2033, the valuation is anticipated to reach USD 70,466.1 Million.

Advertising Video On Demand Market: Growth Factors and Dynamics

• Increasing Digital Video Consumption: The rise in digital video consumption across various devices, such as smartphones, tablets, and smart TVs, is a major growth driver. Consumers are increasingly shifting from traditional TV to online streaming platforms, providing a larger audience for AVOD services.

• Shift in Advertising Spending: Advertisers are reallocating budgets from traditional media to digital platforms due to better targeting and measurable outcomes. AVOD platforms offer precise ad targeting capabilities using data analytics, making them an attractive option for advertisers.

• Content Monetization for Creators: AVOD provides content creators with a viable monetization strategy by generating revenue through advertisements. This model allows creators to offer free content to viewers while earning through ad impressions and interactions.

• Technological Advancements: Innovations in ad technology, such as AI and machine learning, enhance ad personalization and targeting. These advancements improve user experience by delivering more relevant ads and increasing ad effectiveness, driving higher engagement and revenue.

• Expansion of Regional Markets: The Advertising Video On Demand market is growing rapidly in regions like Asia Pacific and North America. High internet penetration, increasing smartphone usage, and the adoption of digital content consumption in these regions contribute significantly to market expansion.

• Hybrid Monetization Models: Many AVOD platforms are exploring hybrid monetization models, combining ad-supported content with subscription-based offerings. This approach caters to diverse user preferences, allowing platforms to diversify revenue streams and attract a broader audience.

• Rise of Original Content and Exclusive Licensing: AVOD platforms are increasingly investing in original content and securing exclusive licensing deals to differentiate themselves in a competitive market. High-quality, unique content attracts more viewers and keeps them engaged, enhancing the platform’s appeal and ad revenue potential​ (Coherent Insights)​.

• Integration with Connected Devices: The integration of AVOD services with various connected devices and smart TVs allows viewers to access content seamlessly across multiple screens. This expansion caters to viewer convenience and preferences, increasing the reach and engagement of AVOD platforms​.

• Improved User Experience and Reduced Ad Fatigue: AVOD platforms are adopting smarter ad strategies, such as personalized and non-intrusive ads, to improve user experience and reduce ad fatigue. By leveraging advanced data analytics and AI, these platforms deliver more relevant ads, enhancing viewer satisfaction and increasing the likelihood of ad engagement.

Advertising Video On Demand Market: Partnership and Acquisitions

• In 2023, Pluto TV, a free ad-supported streaming service, debuted its AVOD platform in India. Offering a diverse range of content encompassing movies, TV shows, news, and sports, Pluto TV’s entry marks a significant addition to India’s streaming landscape.

• In 2023, Tubi, a free ad-supported streaming service, expanded its presence by launching its AVOD platform in Latin America. With a diverse library spanning movies, TV shows, news, and sports, Tubi’s entry enriches Latin America’s streaming options.

Report Scope

Advertising Video On Demand Market: COVID-19 Analysis

The COVID-19 pandemic has significantly impacted the AVOD Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

• Decline in Advertising Revenue: The Advertising Video On Demand market experienced a significant decline in advertising revenue during the pandemic. Brands cut back on advertising spending due to economic uncertainties, leading to decreased revenue for AVOD platforms such as Tubi and Pluto TV.

• Viewer Engagement and Ad Pressures: Although there was an increase in viewership as more people stayed home, the revenue per viewer dropped. The “cost per mile” (CPM) rates for advertisements decreased, making it challenging for AVOD services to monetize the increased traffic effectively.

• Rebounding Ad Spend: As economies began to recover, advertising budgets started to bounce back. This recovery in ad spending has helped stabilize and even grow revenue for AVOD platforms.

• Increased Digital Consumption: The pandemic accelerated the shift towards digital consumption, with more users becoming accustomed to streaming services. This shift has created a larger, more engaged audience for AVOD platforms, contributing to their growth.

• Diversified Revenue Models: Many AVOD platforms have explored diversified revenue models, such as offering premium ad-free options or integrating with other digital services, to create more sustainable income streams.

• Content Expansion: AVOD platforms have invested in expanding their content libraries to attract and retain viewers. By offering a wider range of content, they have been able to draw in more users and keep them engaged for longer periods.

• Technological Advancements: The adoption of advanced technologies such as artificial intelligence and machine learning has improved ad targeting and viewer recommendations, enhancing user experience and advertising effectiveness. This technological edge has played a crucial role in the recovery and growth of AVOD platforms.

In conclusion, the COVID-19 pandemic has had a mixed impact on the Advertising Video On Demand Market, with some challenges and opportunities arising from the pandemic.

List of the prominent players in the Advertising Video On Demand Market:

• YouTube
• Hulu (part of The Walt Disney Company)
• Peacock (NBCUniversal)
• Tubi (Fox Corporation)
• Pluto TV (Paramount Global)
• Roku Channel (Roku Inc.)
• Amazon Freevee (formerly IMDb TV)
• Crackle (Chicken Soup for the Soul Entertainment)
• Vudu (Fandango Media LLC)
• Xumo (Comcast)
• Redbox Free Live TV (Chicken Soup for the Soul Entertainment)
• Plex (Plex Inc.)
• Samsung TV Plus (Samsung Electronics)
• ViX (TelevisaUnivision)
• TV (Canela Media)
• Others

The Advertising Video On Demand Market is segmented as follows:

By Content Type

• Movies
• TV Shows
• Original Series
• News
• Sports
• Others

By Advertising Format

• Pre-Roll Ads
• Mid-Roll Ads
• Post-Roll Ads
• Banner Ads
• Interactive Ads
• Others

By Platform Type

• Standalone AVOD Platforms
• Integrated AVOD in Streaming Services
• AVOD-Supported Social Media Platforms

By Device Type

• Mobile Devices
• Desktops and Laptops
• Smart TVs
• Streaming Devices
• Others

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America