Advertising-based Video On Demand Market (By Advertisement Position: Pre-roll, Mid-roll, Post-roll; By Device; By Enterprise Size; By Industry Vertical) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

The global advertising-based video on demand market size was estimated at USD 38.25 billion in 2023 and it is expected to surpass around USD 489.26 billion by 2033, poised to grow at a CAGR of 29.03% from 2024 to 2033. 

Key Pointers

• North America dominated the global market with the largest market share of 39% in 2023.
• Asia Pacific is expected to witness the fastest CAGR of 30.26% from 2024 to 2033. 
• The mid-roll advertisement position segment held the largest revenue share of 51% in 2023. 
• The pre-roll advertisement position segment is expected to expand at the highest CAGR of 30.44% from 2024 to 2033.
• The mobile segment registered the maximum market share 48% in 2023, and is expected to grow at a CAGR of 27.94% during the forecast period. 
• The laptops and tablet PCs segment is anticipated to grow at the fastest CAGR of 30.36% throughout the forecast period. 
• The large enterprises segment held the largest revenue share of 65% in 2023. 
• The retail & consumer goods segment registered the maximum market share of 30% in 2023. It is expected to grow at a CAGR of 28.17% from 2024 to 2033.
• The media & entertainment segment is expected to grow at the fastest CAGR of 30.97% throughout the forecast period.

Advertising-based Video On Demand Market Overview

The landscape of entertainment consumption has witnessed a significant shift in recent years, with the rise of advertising-based video on demand (AVOD) platforms. These platforms offer viewers access to a wide array of content, ranging from movies and TV shows to user-generated videos, all supported by advertisements.

Advertising-based Video On Demand Market Growth Factors

The growth of the advertising-based video on demand (AVOD) market is propelled by an increasing accessibility of high-speed internet and the widespread adoption of connected devices have expanded the reach of AVOD platforms, enabling users to stream content conveniently across multiple devices. Moreover, the rising demand for free, ad-supported content among consumers, coupled with the preference for personalized viewing experiences, has fueled the rapid adoption of AVOD services. Additionally, advancements in advertising technologies, such as programmatic advertising and dynamic ad insertion, have empowered advertisers to deliver more targeted and engaging advertisements, enhancing viewer engagement and driving revenue growth for AVOD platforms. Furthermore, the proliferation of original content on AVOD platforms, along with strategic partnerships and acquisitions, has contributed to the diversification and enrichment of content libraries, attracting a broader audience base. Collectively, these factors are driving the robust growth of the AVOD market, positioning it as a prominent player in the evolving landscape of digital entertainment.

Report Scope of the Advertising-based Video On Demand Market

Advertising-based Video On Demand Market Trends:

• Original Content Production: AVOD platforms are increasingly investing in original content creation to differentiate themselves and attract subscribers. By producing exclusive shows and movies, these platforms aim to offer unique content that sets them apart from competitors.
• Ad Targeting Technologies: Advancements in advertising technologies, such as programmatic advertising and dynamic ad insertion, are enabling AVOD platforms to deliver more relevant and personalized advertisements to viewers. This enhances viewer engagement while maximizing ad revenue for the platforms.
• User Experience Enhancement: AVOD platforms are prioritizing the improvement of user experience by investing in intuitive interfaces, seamless streaming capabilities, and enhanced recommendation algorithms. By providing a user-friendly experience, these platforms aim to increase viewer retention and engagement.
• Global Expansion: AVOD platforms are expanding their presence globally, tapping into new markets and demographics. This expansion is driven by the increasing demand for ad-supported streaming services worldwide and the growing accessibility of high-speed internet in emerging markets.
• Monetization Strategies: AVOD platforms are experimenting with various monetization strategies beyond traditional advertising, such as sponsored content, branded entertainment, and premium subscriptions with ad-free options. This diversification of revenue streams allows platforms to cater to different consumer preferences while maximizing revenue potential.
• Data Privacy and Regulation: With growing concerns around data privacy and regulation, AVOD platforms are implementing stricter data protection measures and compliance with regulatory requirements. This includes transparent data collection practices, enhanced user consent mechanisms, and adherence to privacy regulations to build trust with viewers and advertisers alike.

Advertisement Position Insights

In terms of advertisement position, the market is classified into pre-roll, mid-roll, and post-roll. The mid-roll advertisement position segment dominated the overall market, gaining a revenue share of 51% in 2023 and registering a CAGR of 28.25% during the forecast period. Mid-roll advertising is placed in the middle of a video or audio clip, frequently interrupting the viewer's or listener's experience. Additionally, a mid-roll advertisement's position might vary based on the platform and content format. Moreover, mid-roll adverts on online video platforms such as YouTube are often put at regular intervals, such as every five minutes or at specified timestamps defined by the content provider. This maintains a balance between keeping viewer interest and allowing advertising to reach their intended group.

The pre-roll advertisement position segment is anticipated to grow at the fastest CAGR of 30.44% throughout the forecast period. Pre-roll advertising appears before the main video or audio content begins. Additionally, this advertising is widespread in online video platforms, streaming services, and podcasts. Pre-roll advertising appears at the start of the content and is usually played automatically before the viewer or listener can access the desired content. Furthermore, pre-roll commercials can run for various lengths, but they are often kept brief to minimize disturbance to the user experience. Pre-roll ad lengths can range from a few seconds to a minute, with 15 to 30 seconds being the most popular. The main aim of this sort of advertisement position is to create a favorable balance between generating ad revenue and maintaining a positive user experience.

Device Insights

Based on device, the market is classified into laptops and tablet PCs, mobile, console, and TV. The mobile segment dominated the overall market, gaining a revenue share of 48% in 2023, and is expected to grow at a CAGR of 27.94% during the forecast period. The segment's growth is attributed to the increasing mobile device adoption due to its unparalleled convenience and accessibility. These devices are also portable and lightweight, allowing users to stay connected and access information on the go. The widespread availability of affordable smartphones has made them accessible to many people, especially, in countries such as India, China, and Japan.

The laptops and tablet PCs segment is anticipated to grow at the fastest CAGR of 30.36% throughout the forecast period. Laptops and tablets are popular video consumption devices owing to their bigger screens and a more immersive viewing experience than smartphones or mobile phones. Many people choose these devices for long-term viewing, such as watching films, TV series, or web videos. Moreover, laptop and tablet devices capitalize on technological advancements and enhanced connectivity. With improved screen resolutions, more robust processing capabilities, and faster internet speeds, users can enjoy a smooth and immersive experience on these devices. These technological enhancements contribute to a seamless and pleasurable viewing experience for AVOD content on laptops and tablets.

Enterprise Size Insights

In terms of enterprise size, the market is bifurcated into small and medium enterprises (SMEs) and large enterprises. The large enterprises segment dominated with a revenue share of 65% in 2023. It is expected to grow at a CAGR of 28.45% during the forecast period. Large enterprises usually have significant resources to develop high-quality video material. They create professional videos such as advertisements, product demonstrations, brand promotions, and corporate documentaries for distribution on advertisement channels. Furthermore, large enterprises use sophisticated advertising strategies in the industry. Additionally, they employ AVOD platforms' user data and analytics to target certain demographics, interests and watching behaviors. This allows companies to display personalized adverts to their target demographic, increasing the efficacy of their marketing initiatives.

The small and medium enterprises (SMEs) segment is expected to grow at the fastest CAGR of 29.93% throughout the projected period. AVOD platforms provide SMEs with a low-cost advertising channel to market their products and services. Additionally, SMEs can access a broad audience while avoiding the substantial costs linked with conventional advertising methods by using the advertising-based video on demand platform. They may boost brand recognition by creating tailored commercials that resonate with their unique target market. Furthermore, SMEs cater to specific regional or specialty markets. They may target local or niche audiences via AVOD platforms. SMEs may maximize the relevance and efficacy of their advertising campaigns by placing their commercials on AVOD channels that are relevant to their target audience.

Industry Vertical Insights

Based on industry vertical, the market is classified into BFSI, education, media & entertainment, IT & telecom, retail & consumer goods, healthcare, and others. The retail & consumer goods segment dominated the overall market, gaining a share of 30% in 2023. It is expected to grow at a CAGR of 28.17% over the forecast period. Retailers and consumer goods corporations use AVOD platforms to market their brands and products through tailored adverts. Additionally, the retail segment often focuses on advertisements that showcase their products, highlight promotional offers, or tell brand stories to capture viewers' attention and drive consumer engagement. Furthermore, AVOD platforms often offer opportunities for retailers to integrate e-commerce capabilities directly into their video content. This allows viewers to buy or learn more about the items featured in the videos without leaving the AVOD site, streamlining the purchasing process.

The media & entertainment segment is expected to grow at the fastest CAGR of 30.97% throughout the forecast period. AVOD platforms offer media and entertainment enterprises a large distribution network via which they may reach a large audience. They may use advertising-based video on demand channels to disseminate their movies, TV shows, web series, documentaries, and other video material to audiences worldwide. Furthermore, AVOD systems allow media and entertainment firms to monetize their content by generating advertising income. They can display adverts to viewers during their content consumption by collaborating with advertisers or through programmatic advertising, collecting money depending on ad impressions or interactions.

Regional Insights

North America led the overall market in 2023, with a revenue share of 39%. The regional growth can be attributed to several major AVOD platforms that have a strong presence in the North American region. Platforms like YouTube, Hulu, Tubi, Facebook, and Roku Channel have established themselves as leading players, offering viewers a wide range of free, ad-supported content. For instance, in February 2023, according to a report by Digital TV Research, the U.S. is expected to contribute USD 30 billion. Such trends are anticipated to propel regional growth over the forecast period.

Asia Pacific is expected to witness the fastest CAGR of 30.26% over the projected period. The advertising-based video on demand industry in Asia Pacific is one of the second-largest and fastest-growing markets in the world. It has experienced significant growth in recent years, driven by increased internet penetration, rising demand for online video content, and the shift toward digital advertising. Additionally, the affordability of smartphones has significantly increased their accessibility, particularly in countries like India, China, and Japan. Notably, iQiyi, MXPlayer, JioCinema, Viu, and Line TV have established themselves as key players in the Asia Pacific region. Their diverse range of AVOD content offerings has played a significant role in driving the growth of the AVOD industry in the region.

Advertising-based Video On Demand Market Key Companies

• YouTube
• Facebook
• IBM
• Vimeo
• Brightcove
• Vidyard
• Kaltura
• Dailymotion
• Vdocipher
• SymphonyAI Media
• Muvi
• Dacast

Advertising-based Video On Demand Market Segmentations:

By Advertisement Position 

• Pre-roll
• Mid-roll
• Post-roll

By Device 

• Laptops & Tablet PCs
• Mobile
• Console
• TV

By Enterprise Size 

• Small & Medium Enterprise (SME)
• Large Enterprise

By Industry Vertical 

• Media & Entertainment
• BFSI
• Education
• Retail & Consumer Goods
• IT & Telecom
• Healthcare
• Others

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Afric