Advertising-based Video On Demand

Global Advertising-based Video On Demand Market to Reach US$219.0 Billion by 2030

The global market for Advertising-based Video On Demand estimated at US$47.6 Billion in the year 2024, is expected to reach US$219.0 Billion by 2030, growing at a CAGR of 29.0% over the analysis period 2024-2030. Mid-roll Advertisement Position, one of the segments analyzed in the report, is expected to record a 32.0% CAGR and reach US$146.8 Billion by the end of the analysis period. Growth in the Pre-roll Advertisement Position segment is estimated at 25.7% CAGR over the analysis period.

The U.S. Market is Estimated at US$13.0 Billion While China is Forecast to Grow at 38.4% CAGR

The Advertising-based Video On Demand market in the U.S. is estimated at US$13.0 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$56.1 Billion by the year 2030 trailing a CAGR of 38.4% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 23.0% and 26.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 24.5% CAGR.

Global Advertising-Based Video On Demand Market - Key Trends & Drivers Summarized

Why Is Advertising-Based Video On Demand Gaining Popularity?

Advertising-based video on demand (AVOD) has emerged as a preferred streaming model due to its accessibility and affordability. Unlike subscription-based platforms, AVOD services offer free or low-cost content supported by advertising revenue, making them an attractive option for consumers who prioritize cost-effective entertainment. The shift toward digital-first content consumption, coupled with growing internet penetration and mobile usage, has accelerated the adoption of AVOD platforms globally.

Viewers benefit from a diverse range of content, including movies, TV shows, and short-form videos, tailored to their preferences through advanced algorithms. This personalized experience, paired with the ability to access content without a subscription fee, has made AVOD particularly popular in emerging markets. Brands and advertisers are also drawn to the model as it allows for precise audience targeting, ensuring their ads reach the right demographic, enhancing engagement, and maximizing returns on investment.

How Are Technological Advancements Reshaping AVOD Platforms?

Technological innovation is revolutionizing the AVOD landscape, making platforms more efficient and user-friendly. Artificial intelligence (AI) and machine learning (ML) algorithms are enhancing content recommendation engines, delivering highly personalized viewing experiences that keep audiences engaged. Dynamic ad insertion technology enables real-time placement of advertisements, ensuring relevance to viewers and optimizing ad revenues.

Furthermore, advancements in video streaming quality, such as 4K and HDR capabilities, have elevated the viewing experience, attracting more users to AVOD platforms. Cloud-based solutions have also enabled seamless scalability and efficient content delivery, reducing buffering and enhancing user satisfaction. As connected TV (CTV) and smart TV adoption grows, AVOD platforms are expanding their reach into living rooms, providing advertisers with a lucrative avenue to target high-value audiences.

Who Are the Key Players and Audiences Driving Growth?

The AVOD market is driven by a mix of established media companies, digital-first platforms, and emerging start-ups. Companies like YouTube, Tubi, Pluto TV, and Peacock are at the forefront, leveraging their vast content libraries and advanced algorithms to capture audience attention. Social media giants are also stepping into the AVOD space, integrating video content with advertising to boost engagement and revenue.

In terms of audience demographics, younger generations such as millennials and Gen Z dominate the viewership, drawn by the convenience and cost-free nature of AVOD platforms. However, older viewers are increasingly adopting AVOD services as they explore digital entertainment options. Geographic expansion into emerging markets, where affordability is a key factor in platform choice, is further diversifying the audience base. The rise of multilingual content is also broadening the appeal of AVOD services, enabling platforms to cater to culturally and linguistically diverse populations.

What Factors Are Driving Growth in the AVOD Market?

The growth in the advertising-based video on demand market is driven by several factors, including the increasing demand for free, high-quality content and the rising adoption of digital streaming platforms. The rapid expansion of internet and smartphone penetration in emerging economies is a critical driver, enabling access to AVOD services in regions previously underserved by traditional media. Technological advancements such as AI-driven personalization, dynamic ad insertion, and improved streaming quality are enhancing both user and advertiser experiences.

End-use diversification is playing a significant role, with AVOD platforms being used not only for entertainment but also for educational, fitness, and informational content. Advertisers are investing heavily in AVOD due to its ability to deliver measurable, targeted campaigns that maximize ROI. Additionally, the growing popularity of connected TVs and the proliferation of affordable smart devices are expanding the reach of AVOD platforms, ensuring sustained growth in the coming years. Together, these factors underscore the robust potential of the AVOD market as a transformative force in digital entertainment.

SCOPE OF STUDY:

The report analyzes the Advertising-based Video On Demand market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Advertisement Position (Mid-roll Advertisement Position, Pre-roll Advertisement Position, Post-roll Advertisement Position); Device (Mobile Device, Laptops and Tablet PCs Device, Consoles Device, TVs Device); Enterprise Size (Large Enterprises, Small and Medium Enterprise (SME) Enterprises); Vertical (Retail and Consumer Goods Vertical, BFSI Vertical, IT and Telecom Vertical, Healthcare Vertical, Media and Entertainment Vertical, Education Vertical, Other Verticals)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 42 Featured) -

• Appsflyer Ltd.
• Brightcove, Inc.
• DaCast LLC
• Gumlet Pte. Ltd.
• Harmonic Inc.
• Kaltura, Inc.
• Muvi LLC
• Penthera
• SymphonyAI LLC
• Vplayed
• Wowza Media Systems, LLC
• Wurl, LLC.

AI INTEGRATIONS
We`re transforming market and competitive intelligence with validated expert content and AI tools.

Instead of following the general norm of querying LLMs and Industry-specific SLMs, we built repositories of content curated from domain experts worldwide including video transcripts, blogs, search engines research, and massive amounts of enterprise, product/service, and market data.

TARIFF IMPACT FACTOR
Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by increasing the Cost of Goods Sold (COGS), reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

Please note: Reports are sold as single-site single-user licenses. Electronic versions require 24-48 hours as each copy is customized to the client with digital controls and custom watermarks. The Publisher uses digital controls protecting against copying and printing is restricted to one full copy to be used at the same location.

The latest version of Adobe Acrobat Reader is required to view the report. Upon ordering an electronic version, the Publisher will provide a link to download the purchased report.

Prior to fulfillment of an order, the client will be required to sign a document detailing the purchase terms for a publication from this publisher.