Advertising Based Video On Demand Market Overview
As per MRFR analysis, the Advertising Based Video On Demand Market Size was estimated at 33.11 (USD Billion) in 2022.
The Advertising Based Video On Demand Market Industry is expected to grow from 36.3(USD Billion) in 2023 to 83.09 (USD Billion) by 2032. The Advertising Based Video On Demand Market CAGR (growth rate) is expected to be around 9.64% during the forecast period (2024 - 2032).
Key Advertising Based Video On Demand Market Trends Highlighted
The Advertising-Based Video On Demand (AVOD) market is undergoing significant shifts, driven by the increasing demand for streaming services. Key market drivers include the rise of connected TV (CTV), the adoption of multi-screen viewing, and the growing popularity of ad-supported content. This convergence of factors has spurred a surge in AVOD platforms, offering advertisers cost-effective and targeted reach. The availability of sophisticated ad targeting and measurement capabilities allows brands to optimize their campaigns and track their performance, driving revenue growth and increased engagement. The rapid adoption of advanced technologies, such as artificial intelligence (AI) and machine learning (ML), is further enhancing the personalization and efficiency of AVOD advertising, creating opportunities for marketers to connect with their target audience more effectively.
Figure1: Advertising Based Video On Demand Market, 2018 - 2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Advertising Based Video On Demand Market Drivers
Rising Popularity of Streaming Services
The increasing popularity of streaming services, such as Netflix, Hulu, and Amazon Prime Video, has been a major driver of growth in the Advertising Based Video On Demand Market Industry. These services offer a convenient and affordable way for consumers to access a wide variety of video content, including movies, TV shows, and documentaries. As streaming services continue to gain popularity, the demand for advertising-based video-on-demand content is expected to grow.Streaming services offer a unique opportunity for advertisers to reach a large and engaged audience. Ads can be targeted to specific demographics and interests, and they can be delivered in a variety of formats, including pre-roll, mid-roll, and post-roll ads. As a result, streaming services are becoming increasingly attractive to advertisers, which is driving growth in the Advertising Based Video On Demand Market Industry.
Growing Adoption of Connected Devices
The growing adoption of connected devices, such as smartphones, tablets, and smart TVs, has also been a major driver of growth in the Advertising Based Video On Demand Market Industry. These devices make it easy for consumers to access video content on the go, which is driving demand for advertising-based video-on-demand content. In addition, the increasing availability of high-speed internet connections is making it possible for consumers to stream video content in high quality, which is further driving demand for advertising-based video on demand content.
Increasing Demand for Personalized Advertising
The increasing demand for personalized advertising has also been a major driver of growth in the Advertising Based Video On Demand Market Industry. Consumers are increasingly expecting to see ads that are relevant to their interests, and advertising-based video-on-demand content provides a unique opportunity for advertisers to deliver personalized ads. Ads can be targeted to specific demographics and interests, and they can be delivered in a variety of formats, including pre-roll, mid-roll, and post-roll ads.As a result, advertising-based video on demand content is becoming increasingly attractive to advertisers, which is driving growth in the Advertising Based Video On Demand Market Industry.
Advertising Based Video On Demand Market Segment Insights
Advertising Based Video On Demand Market Type Insights
The Advertising Based Video On Demand Market is segmented by Type into Short-form and Long-form. The Short-form segment reached a market valuation of USD 15.34 Billion in 2023 and is projected to reach USD 31.18 Billion by 2032, exhibiting a CAGR of 9.1% during the forecast period. The long-form segment, on the other hand, achieved a market valuation of USD 20.96 Billion in 2023 and is projected to reach USD 51.91 Billion by 2032, exhibiting a CAGR of 10.2% during the same period. The growth of the Short-form segment can be attributed to the increasing popularity of short-form video content on platforms such as TikTok, Instagram Reels, and YouTube Shorts.The growth of the Long-form segment, on the other hand, can be attributed to the rising demand for premium video content on platforms such as Netflix, Amazon Prime Video, and Disney+. Overall, the Advertising Based Video On Demand Market is expected to experience significant growth in the coming years, driven by the increasing adoption of streaming services and the growing popularity of video content.
Figure2: Advertising Based Video On Demand Market, By Type, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Advertising Based Video On Demand Market Genre Insights
The Advertising Based Video On Demand Market is segmented by Genre into Entertainment, News, Sports, Education, Lifestyle, and Gaming. Among these segments, Entertainment holds the largest market share, accounting for over 50% of the revenue in 2023. This dominance is attributed to the high demand for entertainment content, including movies, TV shows, and music videos. The News segment is expected to witness significant growth during the forecast period, driven by the increasing popularity of online news channels and platforms. Sports is another rapidly growing segment, fueled by the rising popularity of live sports streaming and the availability of exclusive sports content on video-on-demand platforms.
Advertising Based Video On Demand Market Delivery Platform Insights
The delivery platform segment of the Advertising Based Video On Demand Market is expected to grow significantly in the coming years, driven by the increasing popularity of streaming services and online video platforms. Streaming services such as Netflix, Amazon Prime Video, and Disney+ have become increasingly popular as they offer a wide range of content, including movies, TV shows, and documentaries, at a relatively low cost. Online video platforms such as YouTube and Twitch have also gained popularity as they allow users to create and share their videos.Broadband TV is another important delivery platform for advertising-based video on demand, as it allows users to access content from traditional TV channels as well as streaming services and online video platforms. Mobile devices are also becoming increasingly important delivery platforms for advertising-based video on demand, as they allow users to access content on the go.
Advertising Based Video On Demand Market Target Audience Insights
The target audience for Advertising Based Video On Demand (AVOD) services is diverse, encompassing various segments with distinct preferences and characteristics. General Audience: This segment represents the broadest category, comprising individuals with varying demographics, interests, and viewing habits. They may consume AVOD content across a wide range of genres and platforms, driven by factors such as entertainment value, accessibility, and cost-effectiveness. Specific Demographics: AVOD services can also target specific demographic groups based on age, gender, income, location, and other attributes.For instance, younger audiences may be more likely to engage with AVOD content on mobile devices, while older viewers may prefer traditional TV formats. Specific Interests: AVOD platforms leverage advanced data analytics to segment audiences based on their specific interests, such as travel, sports, cooking, or fashion. This allows advertisers to deliver targeted messaging and content that resonates with highly engaged and receptive viewers.
Advertising Based Video On Demand Market Advertising Format Insights
The Advertising Format segment plays a crucial role in shaping the Advertising Based Video On Demand Market. In-Stream Video Ads, Interactive Ads, and Sponsored Content are the primary formats utilized by advertisers to engage with viewers and drive brand awareness. In-Stream Video Ads, the most prevalent format, are seamlessly integrated within video content, capturing viewers' attention during commercial breaks or as pre-roll or post-roll placements. Interactive Ads, on the other hand, offer viewers engaging experiences, allowing them to interact with the ad content through clickable elements, polls, or quizzes.Sponsored Content, a subtler approach, involves weaving branded messages into the video's narrative, providing a less intrusive yet impactful way to reach audiences. The Advertising Based Video On Demand Market revenue for the Advertising Format segment is projected to reach $12.7 billion by 2024, demonstrating the significant growth potential in this market.
Advertising Based Video On Demand Market Regional Insights
The Advertising Based Video On Demand Market is segmented into North America, Europe, APAC, South America, and MEA. North America is expected to hold the largest market share in 2023, accounting for 38.4% of the market. The growth of the North American market is attributed to the increasing adoption of streaming services, the rising popularity of ad-supported content, and the presence of major players such as Netflix, Hulu, and Amazon Prime Video. The APAC region is expected to grow at the highest CAGR during the forecast period, owing to the increasing internet penetration, the growing adoption of smartphones, and the rising popularity of local content.Europe is expected to account for a significant share of the market, driven by the presence of mature markets such as the UK, Germany, and France. South America and MEA are expected to witness steady growth during the forecast period.
Figure3: Advertising Based Video On Demand Market, By Regional, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Advertising Based Video On Demand Market Key Players And Competitive Insights
Major players in Advertising Based Video On Demand Market are constantly striving to gain a competitive edge by investing heavily in research and development. This investment is primarily focused on developing innovative technologies that enhance the user experience, such as advanced video compression techniques, AI-powered recommendation engines, and personalized advertising solutions. Additionally, leading Advertising Based Video On Demand Market players are expanding their content libraries through strategic partnerships with production studios and independent content creators. These efforts aim to broaden their appeal to a wider audience and cater to diverse viewing preferences. Consolidation is also a key trend in the Advertising Based Video On Demand Market industry, with major players acquiring smaller companies to strengthen their market position and expand their service offerings. Furthermore, the growing popularity of connected TV devices, such as smart TVs and streaming sticks, is driving the adoption of Advertising Based Video On Demand services, leading to increased competition among providers.Roku, a leading Advertising Based Video On Demand Market player, has established a strong presence in the market through its user-friendly platform and extensive content library. The company's focus on licensing popular content and partnering with major streaming services has made it a popular choice among consumers. Roku's robust advertising platform also enables advertisers to reach a wide audience through targeted campaigns.Another leading competitor in the Advertising Based Video On Demand Market is Fox Corporation. The company's Tubi platform offers a vast selection of free movies and TV shows, supported by advertising revenue. Fox Corporation's strength lies in its ownership of popular television networks and production studios, which provides it with access to exclusive content. Additionally, the company's strategic partnerships with cable and satellite providers have expanded Tubi's reach to a broader audience.
Key Companies in the Advertising Based Video On Demand Market Include
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Freevee
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Haystack News
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Peacock
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Crackle
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Redbox
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Plex
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Pluto TV
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Tubi
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Samsung TV Plus
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Vizio WatchFree+
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Philo
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FilmRise
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Roku
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IMDb TV
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Xumo
Advertising Based Video On Demand Market Industry Developments
The advertising-based video-on-demand (AVOD) market is projected to grow from USD 36.3 billion in 2023 to USD 83.09 billion by 2032 at a CAGR of 9.64%. The growth of the market is attributed to the increasing popularity of streaming services, the rising adoption of connected TVs, and the growing demand for personalized advertising.Recent news developments in the AVOD market include the launch of new streaming services, such as HBO Max and Peacock, and the expansion of existing services, such as Netflix and Hulu. Additionally, there has been a growing trend of traditional TV networks launching their streaming services, such as CBS All Access and NBCUniversal's Peacock.Key players in the AVOD market include Roku, Amazon, Google, and Hulu. These companies are investing heavily in developing new technologies and content to attract and retain users.
Advertising Based Video On Demand Market Segmentation Insights
Advertising Based Video On Demand Market Type Outlook
Advertising Based Video On Demand Market Genre Outlook
- Entertainment
- News
- Sports
- Education
- Lifestyle
- Gaming
Advertising Based Video On Demand Market Delivery Platform Outlook
- Streaming Services
- Online Video Platforms
- Broadband TV
- Mobile Devices
Advertising Based Video On Demand Market Target Audience Outlook
- General Audience
- Specific Demographics
- Specific Interests
Advertising Based Video On Demand Market Advertising Format Outlook
- In-Stream Video Ads
- Interactive Ads
- Sponsored Content
Advertising Based Video On Demand Market Regional Outlook
- North America
- Europe
- South America
- Asia-Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
33.11(USD Billion) |
| Market Size 2023 |
36.3(USD Billion) |
| Market Size 2032 |
83.09(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
9.64% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2022 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Freevee, Haystack News, Peacock, Crackle, Redbox, Plex, Pluto TV, Tubi, Samsung TV Plus, Vizio WatchFree+, Philo, FilmRise, Roku, IMDb TV, Xumo |
| Segments Covered |
Type, Genre, Delivery Platform, Target Audience, Advertising Format, Regional |
| Key Market Opportunities |
Increasing adoption of connected TVs Growth of streaming services Rise of programmatic advertising Expansion into emerging markets |
| Key Market Dynamics |
Rising OTT Penetration Increasing Advertiser Spending Technological Advancements Growing Popularity of AVOD Services Emergence of DataDriven Advertising |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Advertising Based Video on Demand Market is expected to reach USD 83.09 billion by 2032, with a CAGR of 9.64% from 2024 to 2032.
Key factors driving the growth of the Advertising Based Video on Demand Market include the increasing popularity of streaming services, the growing adoption of connected TVs, and the rising demand for personalized advertising.
Key competitors in the Advertising Based Video on Demand Market include The Walt Disney Company, Netflix, Amazon, Hulu, and Roku.
Key trends in the Advertising Based Video on Demand Market include the rise of programmatic advertising, the increasing use of data-driven advertising, and the growing popularity of interactive advertising formats.
Challenges facing the Advertising Based Video on Demand Market include the increasing competition from subscription-based streaming services, the fragmentation of the market, and the need for effective ad targeting.
The outlook for the Advertising Based Video on Demand Market is positive, with continued growth expected over the next ten years.
Key applications of Advertising Based Video on Demand include streaming movies and TV shows, watching live events, and accessing educational content.
Key growth opportunities for the Advertising Based Video on Demand Market include the expansion of streaming services into new markets, the development of new advertising technologies, and the increasing adoption of connected TVs.
Key challenges for the Advertising Based Video on Demand Market include competition from subscription-based streaming services, the need for effective ad targeting, and the fragmentation of the market.
