Advertising Video on Demand Market Grow with a CAGR of 6.65% through 2030

The Global Advertising Video on Demand (AVOD) market is growing rapidly, driven by increasing digital content consumption, rising internet penetration, targeted advertising strategies, and the shift from traditional TV to streaming platforms

According to TechSci Research report, “Advertising Video on Demand Market – Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030F”, the global Advertising Video on Demand market stood at USD 48.84 billion in 2024 and is expected to grow USD 71.62 billion by 2030 with a CAGR of 6.65% during the forecast period. The Global Advertising Video on Demand (AVOD) market has witnessed significant growth in recent years, driven by increasing consumer preference for digital content and the rapid expansion of internet connectivity. AVOD platforms provide free streaming content to viewers, monetized through advertising rather than subscription fees. With the growing adoption of Connected TV (CTV) and mobile streaming, advertisers are leveraging AVOD services to reach a wider audience through targeted and programmatic ads. The rise of ad-supported streaming services is transforming the global entertainment landscape, as both consumers and advertisers recognize the benefits of cost-free content funded by advertisements.

Several factors are fueling the expansion of the AVOD market. Increasing digital ad spending is one of the primary drivers, with advertisers shifting budgets from traditional television to digital platforms where data-driven advertising enhances targeting precision. Rising internet penetration and smartphone adoption have also contributed to the market’s growth, particularly in emerging economies where consumers prefer free, ad-supported content over paid subscriptions.

Another major driver is the growth of Connected TV (CTV) usage. As more households transition from traditional cable TV to internet-based streaming, CTV advertising has gained traction, allowing advertisers to engage viewers with high-quality, non-skippable ads. Additionally, advancements in programmatic advertising and artificial intelligence (AI) are enabling AVOD platforms to optimize ad placements, improving both viewer experience and advertiser returns.

Despite its rapid growth, the AVOD market faces several challenges. Ad fatigue and viewer experience remain major concerns, as excessive or poorly placed ads can lead to audience frustration and content abandonment. Platforms must strike a balance between monetization and maintaining a seamless viewing experience.

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The global Advertising Video on Demand market is segmented into type, content and region.

Based on this type, the media & entertainment sector is the fastest growing segment in the Global Advertising Video on Demand (AVOD) market, driven by rising consumer demand for free, ad-supported content across streaming platforms. Major players like YouTube, Pluto TV, and Tubi are expanding their content libraries, leveraging programmatic advertising and AI-driven targeting to enhance viewer engagement. Increasing Connected TV (CTV) adoption, live sports streaming, and original ad-supported content are fueling growth. Additionally, partnerships between content creators and advertisers are optimizing monetization strategies, making Media & Entertainment a key driver of AVOD expansion in the evolving digital landscape.

Based on region, the Asia Pacific region is the fastest-growing market in the Global Advertising Video on Demand (AVOD) industry, driven by rising smartphone penetration, affordable internet access, and increasing digital ad spending. Countries like India, China, and Indonesia are witnessing a surge in ad-supported streaming services, with platforms like MX Player, WeTV, and Youku leading growth. The region's expanding middle class, preference for free content, and rapid urbanization further fuel demand. Additionally, 5G deployment and AI-driven targeted advertising are enhancing user engagement, making Asia Pacific a key focus for advertisers and streaming platforms seeking to capitalize on the growing digital audience.

Major companies operating in the global Advertising Video on Demand market are:

• Amazon.com, Inc.
• Alphabet Inc.
• The Walt Disney Company
• Hulu LLC
• Paramount Globa
• Netflix, Inc.
• Tubi, Inc.
• Muvi LLC
• Vimeo.com, Inc.
• Roku, Inc.

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“The Advertising Video on Demand market is witnessing several notable trends. One of the most significant is the growing acceptance of ad-supported streaming models. Major streaming services such as Amazon Prime Video, Netflix, and Disney+ have introduced ad-supported tiers to attract cost-conscious consumers and expand their user base. AI-driven targeted advertising is another crucial trend, enabling advertisers to serve personalized ads based on user behavior, demographics, and content preferences. This has increased engagement rates and ad effectiveness while minimizing audience disruption,” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

"Advertising Video on Demand Market – Global Industry Size, Share, Trends, Opportunity and Forecast, By Type (Pre-Roll Advertisement, Mid-Roll Advertisement, Post-Roll Advertisement), By Content (Media & Entertainment, Education, Others (Sports, etc.)), By Region & Competition, 2020-2030F  ”, has evaluated the future growth potential of global Advertising Video on Demand market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the global Advertising Video on Demand market.

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