Advertising Based Video On Demand (AVOD) Market Size
| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 45.92 Billion |
| Market Size (2030) | USD 67.85 Billion |
| CAGR (2025 - 2030) | 8.12% |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Advertising Based Video On Demand (AVOD) Market Analysis
The Advertising Based Video On Demand Market size is estimated at USD 45.92 billion in 2025, and is expected to reach USD 67.85 billion by 2030, at a CAGR of 8.12% during the forecast period (2025-2030).
- AVOD, or Advertising-Based Video on Demand, is a monetization model for streaming services that enables users to access content for free or at a low cost, with revenue generated through advertisements.
- As consumers increasingly seek cost-effective alternatives to subscription services, there's a notable shift towards ad-supported content. This trend is especially pronounced among younger demographics, like millennials, who are becoming more receptive to ad-supported models. In response, major streaming platforms, including Disney+ and Netflix, are rolling out ad-supported tiers alongside their traditional subscription offerings, signaling a strategic move towards AVOD as a viable revenue stream.
- YouTube stands out as the premier AVOD platform, with a staggering 2 billion monthly logged-in users. The platform not only allows content creators to monetize their videos through ads but also shares revenue with them. Additionally, Tubi, a platform owned by Fox Corporation, boasts a vast library of over 40,000 titles and has successfully garnered 51 million monthly active users.
- Programmatic advertising adoption is streamlining ad placements, facilitating real-time targeting and measurement of ad effectiveness. This advancement empowers advertisers to connect with specific demographics more efficiently, thereby enhancing ROI.
- However, AVOD platforms grapple with challenges like the rising prevalence of ad-blocking software and heightened scrutiny over data privacy regulations, which can curtail ad targeting. Moreover, fierce competition from subscription-based models (SVOD) complicates the growth trajectory of AVOD services, pushing them to strike a delicate balance between ad frequency and user satisfaction, a challenge that could impede market expansion.
- Post-pandemic, the Asia-Pacific region is emerging as a hotspot for AVOD market growth, fueled by increasing internet accessibility and a surging appetite for online video content. Key regional players, such as iQiyi, MXPlayer, and JioCinema, are adeptly riding the wave of this ad-supported streaming trend.
Advertising Based Video On Demand (AVOD) Market Trends
Programmatic Advertising to Hold Significant Market Demand
- The convergence of Advertising-Based Video on Demand (AVOD) and programmatic advertising is transforming the digital advertising arena, offering advertisers and content providers novel methods to captivate audiences. Programmatic advertising streamlines the ad space buying and selling process through algorithms and data analytics. This automation facilitates real-time bidding, allowing advertisers to acquire ad placements in response to audience data and behavior.
- The surge in ad-supported streaming services underscores a rising consumer inclination towards complimentary content. Notably, platforms such as Netflix and Disney+ have rolled out ad-supported tiers, signaling a wider acceptance of AVOD models within conventional subscription services. Furthermore, advancements in ad technology, including interactive formats and AI-driven personalized experiences, are enhancing user satisfaction while ensuring robust monetization.
- Advertisers commonly adopt a dynamic cost-per-mille (CPM) model, incurring charges for every 1,000 ad impressions. This approach fine-tunes ad expenditure in line with performance metrics. Striking a balance between ad frequency and viewer contentment is paramount. Bombarding viewers with ads risks dissatisfaction and a surge in ad-blocker usage. With the AVOD market's growth, programmatic solutions empower advertisers to swiftly amplify their campaigns across diverse platforms and audiences, minimizing manual intervention.
- Increased access, better targeting, and improved ROI all make it a valuable prospect for businesses looking to reach consumers on different devices. Overall programmatic advertising allow AdTech vendors and marketers alike to maximize their ad spend while reaching goals more effectively.
North America is Expected to Hold a Major Share of the Market
- North America's Advertising-Based Video on Demand (AVOD) market is witnessing robust growth, fueled by evolving consumer preferences and the persistent trend of cord-cutting. This surge is largely due to major players like YouTube, Hulu, and Tubi, which provide a vast array of free content.
- Kantar Group reports that video streaming in the U.S. has hit a saturation point, with around 96% of households participating in some streaming service. Yet, ad-supported platforms are on the rise. Both AVOD and Free Ad-supported Streaming TV (FAST) are gaining traction, while subscription-based services (SVOD) see a downturn. The U.S. AVOD landscape boasts a rich tapestry of content, from movies and TV shows to original series, sports, and news, broadening its audience appeal.
- Industry insights reveal that nearly 60% of U.S. adults cite cost savings as a key reason for opting for ad-supported services over subscriptions. AVOD platforms, with their vast libraries of older licensed content, cater to consumers desiring variety without the financial burden of subscriptions.
- YouTube reigns supreme in Canada's AVOD scene, with around 84% of Canadians engaging with the platform as of April 2024. Tubi follows as the runner-up, with about 25% of survey respondents favoring it. Furthermore, Canada's AVOD landscape is enriched with diverse content, including French-language programming, broadening its audience reach.
- In conclusion, North America's AVOD market is set for vigorous expansion, mirroring a broader consumer shift towards ad-supported content in the OTT realm.
Advertising Based Video On Demand (AVOD) Industry Overview
The Advertising Based Video on Demand (AVOD) Market is highly competitive and fragmented, primarily driven by the presence of major players. These key players employ strategies such as mergers, acquisitions, and product innovations to maintain a competitive edge and broaden their global footprint. Key player include Roku, Inc., YouTube, LLC, Xumo Platform, and others.
AVOD is an increasingly popular choice in the streaming landscape, particularly as consumer preferences shift towards ad-supported models that offer flexibility and accessibility. As digital video consumption continues to grow, AVOD platforms are expected to play a significant role in shaping the future of media consumption. AVOD presents a compelling alternative in the streaming landscape by providing free access to content while generating revenue through advertisements. Its ability to attract a large audience, coupled with flexible monetization options and targeted advertising capabilities, makes it an increasingly popular choice among both consumers and content creators alike.
Advertising Based Video On Demand (AVOD) Market Leaders
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Roku, Inc.
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YouTube, LLC
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Xumo Platform
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Hulu, LLC
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Tubi, Inc.
- *Disclaimer: Major Players sorted in no particular order
Advertising Based Video On Demand (AVOD) Market News
- September 2024: M6+ announced strategic partnership with Pluto TV. A total of 12 Pluto TV channels will be launched across the M6 ecosystem with nearly 3,000 hours of content from the platform’s franchises.
- September 2024: OKAST has announced its selection of the Publica by IAS advanced CTV ad server as a key component of European Consortium, ASAP4EU. The partnership allows OKAST to enhance its advertisers’ targeting capabilities, enrich its streaming content viewing experience in FAST (Free Ad-Supported Streaming TV) and AVOD (Advertising Video on Demand) distributions with a traditional TV-like viewing experience.
Advertising Based Video On Demand (AVOD) Industry Segmentation
Advertising-based Video on Demand (AVOD) is a model where video content is made available for viewing on the internet and supported by advertisements. Advertisements are integrated into the viewing experience, appearing before, during, and after the video content. AVOD revenue model allows streaming the content free of cost and instead pays the content creators via advertisements.
The AVOD market is segmented by advertising format (pre-roll, mid-roll, post-roll), by device (laptops and tablet PCs, mobile, console, tv), by end-user (media and entertainment, BFSI, education, retail, other end-users), geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Advertising Format | Pre-roll |
| Mid-roll | |
| Post-roll | |
| By Device | Laptops and Tablet PCs |
| Mobile | |
| Console | |
| TV | |
| By End-users | Media and Entertainment |
| BFSI | |
| Education | |
| Retail | |
| Other End-users | |
| By Geography*** | North America |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Advertising Based Video On Demand (AVOD) Market Research FAQs
How big is the Advertising Based Video On Demand Market?
The Advertising Based Video On Demand Market size is expected to reach USD 45.92 billion in 2025 and grow at a CAGR of 8.12% to reach USD 67.85 billion by 2030.
What is the current Advertising Based Video On Demand Market size?
In 2025, the Advertising Based Video On Demand Market size is expected to reach USD 45.92 billion.
Who are the key players in Advertising Based Video On Demand Market?
Roku, Inc., YouTube, LLC, Xumo Platform, Hulu, LLC and Tubi, Inc. are the major companies operating in the Advertising Based Video On Demand Market.
Which is the fastest growing region in Advertising Based Video On Demand Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Advertising Based Video On Demand Market?
In 2025, the North America accounts for the largest market share in Advertising Based Video On Demand Market.
What years does this Advertising Based Video On Demand Market cover, and what was the market size in 2024?
In 2024, the Advertising Based Video On Demand Market size was estimated at USD 42.19 billion. The report covers the Advertising Based Video On Demand Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Advertising Based Video On Demand Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Advertising Based Video On Demand (AVOD) Industry Report
Statistics for the 2025 Advertising Based Video On Demand (AVOD) market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Advertising Based Video On Demand (AVOD) analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
