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

Global Advertising Video on Demand market was valued at USD 48.84 billion in 2024 and is expected to grow to USD 71.62 billion by 2030 with a CAGR of 6.65% during the forecast period. The Global Advertising Video on Demand (AVOD) market is experiencing significant growth, fueled by the rising adoption of digital streaming services, increasing internet penetration, and the growing preference for ad-supported content. Consumers are shifting from traditional TV to online platforms, driving demand for personalized and targeted advertisements.

Key Market Drivers

Increasing Digital Content Consumption

One of the primary drivers of the AVOD market is the significant rise in digital content consumption. The shift from traditional television to on-demand digital platforms has accelerated, driven by changing consumer preferences, advancements in technology, and the proliferation of smart devices. Consumers increasingly prefer flexible, on-demand access to content, making AVOD platforms a popular choice as they provide free streaming options supported by advertisements. A study reveals that the average U.S. consumer holds 8.2 subscriptions, with 53% managing them across multiple platforms, creating a complex and time-consuming process. This challenge has fueled strong demand for subscription management solutions, with 73% of consumers expressing interest in apps that simplify the process. Interest is particularly high among younger consumers aged 18-44 (80%), compared to 54% of individuals aged 65 and older, highlighting a significant market opportunity for streamlined subscription management services.

Additionally, the surge in mobile video consumption plays a crucial role in AVOD growth. With smartphones and tablets becoming primary content consumption devices, platforms like YouTube, Tubi, and Pluto TV have gained immense traction. The rise of social media-based video content, short-form videos, and live streaming further boosts AVOD adoption. As a result, advertisers are leveraging AVOD platforms to reach a diverse and engaged audience.

Rising Internet Penetration and Smart Device Adoption

The increasing availability of high-speed internet and the expansion of broadband infrastructure worldwide have significantly contributed to AVOD’s growth. More consumers now have seamless access to online video content, further fueling demand for ad-supported streaming platforms. Regions with rapid internet expansion, such as Asia-Pacific, Latin America, and Africa, present strong growth opportunities for AVOD services. In 2024, 5.35 billion people, accounting for 66.2% of the global population, are internet users. Over the past year, the number of users increased by 1.8%, with 97 million new users joining online in 2023, driving market growth.

Additionally, the widespread adoption of smart TVs, connected devices, and OTT (Over-The-Top) streaming services has enhanced AVOD accessibility. Smart TVs come with built-in applications that support AVOD platforms, making it easier for users to access free, ad-supported content. The growing affordability of these devices further accelerates AVOD adoption across emerging markets. As streaming becomes a mainstream form of entertainment, advertisers see AVOD as an effective way to reach a broad audience without requiring paid subscriptions.

Advancements in AI-Driven Targeted Advertising

The evolution of artificial intelligence (AI) and data analytics has revolutionized advertising strategies within the AVOD market. AI-driven targeted advertising allows advertisers to deliver highly personalized and relevant ads to consumers based on their viewing habits, demographic data, and online behavior. This enhances the effectiveness of advertisements and increases user engagement while improving return on investment (ROI) for advertisers.

Programmatic advertising, which uses automated technology to purchase and place ads in real-time, has become a key component of AVOD strategies. Platforms leverage AI to analyze consumer preferences and optimize ad placements, ensuring brands connect with the right audience at the right time. AI-powered ad personalization reduces ad fatigue and enhances the overall viewing experience, leading to higher ad retention rates and better monetization opportunities for AVOD platforms.

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Key Market Challenges

Ad Fatigue and Consumer Resistance

One of the biggest challenges in the Global Advertising Video on Demand (AVOD) Market is ad fatigue, where users become overwhelmed or frustrated by the frequency and repetitiveness of advertisements. Unlike traditional television, where commercial breaks are expected, AVOD viewers often seek a more seamless, on-demand experience. Excessive ad interruptions can lead to dissatisfaction, reducing engagement and increasing the likelihood of users abandoning a platform in favor of alternatives such as Subscription Video on Demand (SVOD) services.

Moreover, consumers today have greater control over their content consumption and often use ad-blocking tools or opt for premium versions of streaming services to avoid advertisements altogether. Advertisers and AVOD platforms must strike a delicate balance between monetization and user experience. Overloading content with ads can deter viewers, while too few ads may impact revenue potential. The challenge lies in ensuring a non-intrusive ad experience by incorporating AI-driven, personalized ads and optimizing ad placement strategies to maintain viewer retention and engagement.

Privacy Concerns and Regulatory Challenges

Data privacy and stringent regulatory policies present significant challenges for AVOD platforms and advertisers. Personalized and targeted advertising, a key driver of AVOD revenue, relies heavily on collecting user data, including viewing habits, demographics, and online behavior. However, increasing concerns over data privacy and security have led to stricter regulatory frameworks, such as the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the U.S.

These regulations limit the extent to which AVOD platforms can collect and utilize consumer data for advertising, requiring greater transparency and consent-based data collection methods. Compliance with evolving privacy laws increases operational complexities and may impact the effectiveness of targeted advertising strategies. Additionally, growing consumer awareness about data privacy has led to increased demand for stricter privacy controls, with some users opting out of personalized ads altogether.

Key Market Trends

Growth of Hybrid Monetization Models

One of the most notable trends in the Global Advertising Video on Demand (AVOD) Market is the rise of hybrid monetization models that combine ad-supported and subscription-based services. As competition in the streaming industry intensifies, many platforms are shifting away from purely ad-supported or subscription-only models to offer consumers more flexibility.

Streaming giants like Netflix, Disney+, and HBO Max have introduced ad-supported tiers, allowing users to access premium content at a lower price while still generating revenue through advertisements. This trend benefits both consumers and advertisers—viewers gain access to content at reduced costs, while advertisers reach a broader audience. Additionally, platforms like Hulu and Peacock have successfully implemented tiered pricing structures, giving users the choice between an ad-supported or ad-free experience.

Expansion of AVOD in Emerging Markets

The AVOD market is experiencing rapid growth in emerging regions, particularly in Asia-Pacific, Latin America, and Africa, where internet penetration is rising, and consumers prefer free content over paid subscriptions. Many streaming platforms are localizing content and adapting their ad strategies to cater to these diverse markets, further driving AVOD adoption.

For example, India has become a major AVOD hub, with platforms like YouTube, MX Player, and SonyLIV offering extensive ad-supported content. Similarly, in Southeast Asia, services like Viu and iQIYI are expanding their AVOD offerings to reach cost-conscious audiences who seek entertainment without subscription fees.

Rise of Connected TV (CTV) Advertising

Connected TV (CTV) advertising is rapidly transforming the AVOD market as more consumers shift from traditional cable TV to internet-connected smart TVs, streaming devices, and gaming consoles. Unlike mobile and desktop ads, CTV ads offer a more immersive and high-impact experience, as they are displayed on larger screens in a living room setting, making them more engaging for viewers.

Major AVOD platforms such as Pluto TV, Tubi, and Freevee (formerly IMDb TV) are capitalizing on the CTV boom by offering high-quality, ad-supported content tailored for smart TV users. Roku and Amazon Fire TV have also emerged as dominant players, integrating AVOD services directly into their streaming ecosystems.

Segmental Insights

Type Insights

Mid-roll ads dominated the Global Advertising Video on Demand (AVOD) market due to their higher engagement rates and effectiveness compared to pre-roll and post-roll ads. Placed strategically within video content, mid-roll ads benefit from captive audiences, reducing the likelihood of ad skipping. Streaming platforms like YouTube, Hulu, and Peacock leverage mid-roll placements to maximize ad revenue while maintaining viewer retention. Advertisers prefer mid-roll ads as they deliver higher completion rates and better brand recall. With increasing content consumption and longer video formats, mid-roll advertising remains the most effective and widely adopted monetization strategy in the AVOD industry.

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Regional Insights

North America dominated the Global Advertising Video on Demand (AVOD) market, driven by high internet penetration, advanced digital infrastructure, and strong consumer demand for ad-supported streaming content. The region is home to major AVOD platforms like YouTube, Hulu, Pluto TV, Tubi, and Roku Channel, which attract large audiences and significant advertising investments. Additionally, the rapid adoption of Connected TV (CTV) and programmatic advertising has fueled market growth. The presence of leading advertisers, content creators, and technology firms further strengthens North America’s dominance, making it the most lucrative region for AVOD revenue and innovation in digital advertising strategies.

Recent Developments

• In May 2023, wedotv expanded its presence by launching its core AVOD service globally via the LG app store. Additionally, its FAST channels, wedo big stories and wedo movies, became available across Europe on the LG Channels smart TV platform.

• In Dec 2024, Amazon Prime Video introduced an ad-supported tier, making advertisements the default for Prime subscribers. This strategic move significantly disrupted the streaming industry, positioning Amazon as a major player in video advertising.

• In February 2024, Brightcove partnered with Google Ad Manager to enhance its Ad Monetization service, enabling customers to better manage video inventory and maximize ad revenue through streamlined operations and access to Google's programmatic marketplace.

Key Market Players

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

Report Scope:

In this report, the Global Advertising Video on Demand Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•   Advertising Video on Demand Market, By Type:

o   Pre-Roll Advertisement

o   Mid-Roll Advertisement

o   Post-Roll Advertisement

• Advertising Video on Demand Market, By Content:

o   Media & Entertainment

o   Education

o   Others

• Advertising Video on Demand Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Asia-Pacific

§  China

§  Japan

§  India

§  Australia

§  South Korea

§  Indonesia

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   South America

§  Argentina

§  Colombia

§  Brazil

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Turkey

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Advertising Video on Demand Market.

Available Customizations:

Global Advertising Video on Demand Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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