The global Advertising Video on Demand (AVOD) market is experiencing a surge in digital video consumption and a shift from traditional TV to digital, driven by the rise in AVOD platforms offering free access to a vast content library while delivering targeted advertisements. According to the TechSci Research report titled “Advertising Video on Demand Market – Global Industry Size, Share, Trends, Competition, Opportunity, and Forecast, 2018-2028F,” AVOD has transformed the digital entertainment landscape, providing on-demand access to high-quality entertainment for users and an effective means for advertisers to reach engaged audiences.
AVOD’s scope evolves with advancing technology and changing consumer behavior, indicating its continued significance in the digital media landscape. The growing demand for digital video content, coupled with targeted advertising effectiveness, suggests ample opportunities for brands and advertisers to connect with their target audiences. AVOD platforms collaborate with brands and content creators for branded content integrations and partnerships, enhancing brand visibility and association.
The global AVOD market is segmented based on advertising types, with pre-roll, mid-roll, and post-roll advertisements playing distinct roles. Pre-roll ads appear before the main video content, mid-roll ads interrupt content during playback, and post-roll ads display after the main content, serving as a closing ad for the session.
Market segmentation also includes content categories such as media & entertainment, education, and others (Sports). In regional analysis, North America dominates the AVOD market due to the widespread adoption of smart devices and high internet penetration.
Key market players include Amazon.com, Inc., Alphabet Inc., The Walt Disney Company, Hulu LLC, Paramount Global, Netflix, Inc., Tubi, Inc., Muvi LLC, Roku, Inc., and Peacock TV LLC.
Consumers are increasingly focused on AVOD, leading to a reduction in subscriptions to multichannel video programming distributors (MVPD) or subscription video on demand (SVOD) services. Some SVOD platforms now offer ad-supported versions to maintain market dominance, as seen with YouTube’s transition into an AVOD service.
TechSci Research predicts significant expansion in the global AVOD market due to factors such as the adoption of smart connected devices, rising internet penetration, and the shift from traditional TV to digital. AVOD platforms’ partnerships with content creators and production studios further contribute to expanding content libraries and attracting more viewers.
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