The size of the global ad-supported video on demand market was estimated at USD 51.14 billion in 2024 and is anticipated to reach a CAGR of 39.2% during 2025-2035. AVOD services are increasingly becoming popular with the rise of more pay-tv subscription-based on-demand services filling a large proportion of budgets of consumers. AVOD services based on advertising use user activity analytics, as well as device capabilities and specifications, to target ads to users. Since publishers can use user activity data to personalize ad targeting, marketers are increasingly interested in AVOD services. AVOD services can utilize user activity analytics to deliver personalized advertising that increases conversion rates and ROI for advertisers
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Advertisement Position Insights
On the basis of advertisement position, the market is segmented into pre-roll, mid-roll, and post-roll. The mid-roll advertisement position segment led the overall market and captured a market share of 49.1% in 2024. Mid-roll advertisement is inserted in the middle of a video or audio clip, often disrupting the viewer’s or listener’s experience. Moreover, a mid-roll advertisement’s position can differ depending on the platform and content type. In addition, mid-roll commercials on internet video sites like YouTube tend to be placed at standard intervals, like every five minutes or at certain timestamps that are set by the content creator. This balances the need to retain viewer interest and provide advertising to their target audience.
Device Insights
On a device basis, the market is segmented into laptops and tablet PCs, mobile, console, and TV. The mobile segment captured the entire market, as it earned a market share of 45.8% in 2024. The growth of the segment is based on the rise in the adoption of mobile devices because of its unmatched convenience and accessibility. The devices are also light and easy to carry, enabling users to be connected and receive information whenever and wherever they are. Due to the global mass production and spread of inexpensive smartphones, they now reach numerous persons across the world, even those in emerging countries like India, China, and Japan. According to GSMA, an international non-profit industry association promoting mobile network operators’ interests worldwide, there will be about 5.48 billion people worldwide active on mobile phones in 2023.
Depending on enterprise size, the market is divided into small and medium enterprises (SMEs) and large enterprises. The large enterprises segment held the largest share in the overall market, maintaining a market share of 63.0% in 2024. Large enterprises typically possess adequate resources to create high-quality video content. They produce professional videos like advertisements, product demonstrations, brand promotions, and corporate documentaries for release on advertisement channels. In addition, bigger companies utilize complex advertising techniques within the industry. Moreover, they utilize user information and analytics from AVOD platforms to target some demographics, interests, and viewing habits. In this way, businesses are able to offer custom ads to their target audience, making their marketing efforts more effective.
Industry Vertical Insights
On the basis of industry verticals, the market is divided into BFSI, education, media & entertainment, IT & telecom, retail & consumer goods, healthcare, and others. Retail & consumer goods dominated the market as a whole, taking up a share of 28.4% in 2024. Advert-based video on demand services are utilized by consumer goods companies and retailers to promote their products and brands using custom-made advertisements. Moreover, retail & segment tends to emphasize ads that promote their products, announce promotional deals, or narrate brand histories to attract the attention of viewers and stimulate consumer interaction. Moreover, AVOD platforms tend to provide room for retailers to embed e-commerce functionality into their video content. This enables viewers to purchase or learn more about the products in the videos without leaving the AVOD site, making the purchasing process more convenient.
Major Advertising-based Video On Demand Industry Insights
The market is distributed and is expected to see competition with the presence of many players. The players compete on the basis of type of ads and quality and level of creativity in these advertisement services. Additionally, the AVOD model is rapidly expanding as it supports dynamic delivery of advertisements with more personalization and customization in the ad-delivery experience. The demand for advertising videos for product and service promotion is also fueling the growth of AVOD services.
IBM, Facebook, and YouTube are some of the prominent companies in the market, among others.
IBM’s strength in the AVOD market is its advanced technology infrastructure and expertise in AI, cloud computing, and data analytics. With IBM Watson’s AI, the company provides advanced ad-targeting capabilities, such as predictive audience analysis and dynamic ad personalization, to maximize viewer engagement. IBM cloud solutions provide scalable video delivery and efficient content management for AVOD providers, delivering high-quality streaming experiences on any device. In addition, IBM’s emphasis on secure data processing and privacy regulation compliance makes it a desirable partner for media firms that require strong and reliable advertising capabilities. Through combining advanced technologies with video platforms, IBM enables businesses to optimize ad campaigns in real time to stay competitive in an AVOD marketplace where targeting is crucial and the user experience must be maximized.
The strength of Facebook’s competitive position within the AVOD marketplace is built on its extensive user base, rich audience information, and converged advertising environment. With over a billion active users on Facebook Watch, Instagram, and Messenger, the company provides unmatchable reach for advertisers who are interested in advertising to niche audiences. Meta’s sophisticated data analysis and machine learning algorithms offer sharp audience segmentation, enabling advertisers to deliver custom ads that resonate with users. The platform allows diverse ad types, including in-stream video ads, carousel ads, and interactive ad formats, to increase engagement. Further, Facebook’s cohesion across social platforms enhances ad delivery and content discovery, which increases conversions and viewability. Its focus on user-generated and short-form video content keeps pace with viewing habits, keeping Facebook competitive as AVOD continues to develop.
The strength of YouTube in the AVOD space lies in its unparalleled scale, broad content diversity, and sophisticated ad ecosystem. Being the world’s biggest video platform, it hosts a huge range of content, including professional work and user-uploaded videos, drawing in billions of visitors every month. Its state-of-the-art advertisement system, driven by Google Ads, provides targeted display, real-time measurement, and ad types such as skippable, non-skippable, and bumper ads, presenting advertisers with various engagement choices. YouTube’s alignment within Google’s ecosystem facilitates smooth cross-platform campaigns, improving reach and efficacy. Further, its recommendation engine also boosts viewer interaction, creating greater ad views. With healthy support from content creators through monetization initiatives, it has a continuous flow of new content, enhancing its supremacy in the AVOD market further.
AVOD Market Companies
Major players operating in the AVOD industry are
- Amazon Freevee
- Crackle
- Dailymotion
- Plex
- Pluto TV
- Roku
- Tubi
- Vizio WatchFree+
- Xumo
- Youtube
The AVOD market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Million) from 2025 to 2035, for the following segments
Market, By Content
- Movies
- TV shows
- Original series
- News
- Sports
- User-generated content
Market, By Platform
- Standalone platforms
- Mobile devices
- Smart TVs
- Desktop & laptops
- Streaming devices
- Others
- Broader streaming platforms
- Mobile devices
- Smart TVs
- Desktop & laptops
- Streaming devices
- Others
- Social media platforms
- Mobile devices
- Smart TVs
- Desktop & laptops
- Streaming devices
- Others
Market, By Device
- Mobile devices
- Smart TVs
- Desktop & laptops
- Streaming devices
- Others
Market, By Format
- Pre-roll ads
- Mid-roll ads
- Post-roll ads
- Banner ads
- Native ads
- Others
Market, By Genre
- Drama
- Comedy
- Action/Adventure
- Reality TV
- Crime/Mystery
- Sci-Fi/Fantasy
- Documentary
- News
- Sports
- Kids/Family
- Others
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