Advertising Based Video On Demand Market

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 - 2034 (USD Billion)

Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

The Global Advertising Based Video On Demand Market Industry is poised for substantial growth, with projections indicating a market size of 43.6 USD Billion in 2024 and an anticipated increase to 120.1 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate of 9.65% from 2025 to 2035, reflecting the increasing adoption of advertising-supported video platforms. As consumer preferences shift towards on-demand content, the market is likely to witness a surge in both viewership and advertising revenue. The convergence of technological advancements and changing consumer behaviors will further drive this growth, positioning the industry for a dynamic future.

The rise of mobile consumption significantly influences the Global Advertising Based Video On Demand Market Industry. With the increasing penetration of smartphones and tablets, consumers are now able to access video content anytime and anywhere. This shift towards mobile viewing has prompted advertising platforms to optimize their content for mobile devices, ensuring a seamless experience for users. As mobile consumption continues to grow, advertisers are likely to invest more in mobile-targeted campaigns, recognizing the potential to reach audiences effectively. This trend not only enhances viewer engagement but also drives revenue growth for advertising-supported video platforms, further solidifying their position in the market.

The emergence of new content creators is reshaping the Global Advertising Based Video On Demand Market Industry. Platforms that support user-generated content are gaining popularity, allowing independent creators to reach global audiences. This democratization of content creation fosters diversity and innovation, attracting viewers who seek unique and authentic experiences. As these platforms grow, advertisers are increasingly interested in collaborating with emerging creators to tap into niche markets. This trend not only expands the advertising landscape but also encourages a more vibrant ecosystem within the video on demand space, potentially leading to increased revenue streams for both creators and platforms.

The Global Advertising Based Video On Demand Market Industry experiences a surge in demand for streaming services, driven by changing consumer preferences. As audiences increasingly favor on-demand content over traditional television, platforms that offer advertising-supported video on demand are gaining traction. In 2024, the market is projected to reach 43.6 USD Billion, reflecting the growing appetite for diverse content options. This trend is further supported by the proliferation of smart devices and high-speed internet access, enabling consumers to enjoy seamless streaming experiences. Consequently, advertisers are keen to leverage these platforms to reach targeted audiences effectively.

The Global Advertising Based Video On Demand Market Industry is witnessing a notable increase in investment in digital advertising. As brands recognize the effectiveness of targeted advertising through video content, they are allocating larger budgets to this medium. The shift from traditional advertising to digital formats is evident, with projections indicating that the market could grow to 120.1 USD Billion by 2035. This growth is fueled by advancements in data analytics and audience segmentation, allowing advertisers to tailor their messages to specific demographics. As a result, the synergy between advertisers and video on demand platforms is likely to strengthen, enhancing overall market dynamics.

Technological advancements play a pivotal role in shaping the Global Advertising Based Video On Demand Market Industry. Innovations in streaming infrastructure, such as improved content delivery networks and enhanced compression technologies, enable providers to deliver high-quality video content efficiently. These advancements not only enhance user experience but also attract more viewers to advertising-supported platforms. As the market evolves, the integration of artificial intelligence and machine learning in content recommendations further personalizes viewer experiences, potentially increasing engagement rates. This technological evolution is expected to contribute to a compound annual growth rate of 9.65% from 2025 to 2035, underscoring the industry's dynamic nature.

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, Market Research Future Database and Analyst Review

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.