May 22, 2024

Online Video Advertising (AVOD) is the largest segment driving the growth of AVOD

AVOD services provide short-form video content supported by advertisements to users at no extra cost. It allows users to stream videos, movies, TV shows, news and other content for free in exchange for watching advertisements. The on-demand feature offers flexibility and accessibility to consumers.

The global AVOD Services Market is estimated to be valued at US$ 28.09 Bn in 2023 and is expected to exhibit a CAGR of 14% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
The growing penetration of high-speed internet and increase in media consumption on digital platforms are fueling the growth of the AVOD services market. The COVID-19 pandemic has further accelerated digitalization and increased users’ dependence on OTT platforms for entertainment. The flexibility of watching content anytime from anywhere on various devices like smartphones, laptops, smart TVs etc. using AVOD services has gained immense popularity among consumers. Major players are focusing on expanding their content libraries and leveraging data analytics to provide personalized content experiences to users through targeted advertisements.

SWOT Analysis

Strength: AVOD services provide ad-supported content for free to users, making it accessible to all. This helps in attracting a large consumer base.

Weakness: The dependency on advertisements for revenues makes earnings vulnerable to fluctuations in the advertising market.

Opportunity: Rising internet and smartphone penetration in emerging markets provide an opportunity to gain new users. Growing preference of millennials for streaming services also presents an opportunity.

Threats: Stiff competition from paid streaming services can pose a threat by limiting the userbase and revenues of AVOD services. Stringent regulations around digital advertising are another threat.

Key players

Operating in the AVOD services market are YouTube (Google), Hulu (Disney), Peacock (NBCUniversal), Tubi (Fox Corporation), Pluto TV (ViacomCBS), IMDb TV (Amazon), Roku Channel (Roku), Crackle (Chicken Soup for the Soul Entertainment), Xumo (Comcast), Vudu (Walmart), The Roku Channel (Roku), Popcornflix (Screen Media Ventures), MX Player (Times Internet), Voot (ViacomCBS). These players are focused on expanding their catalog and partnerships to bolster user engagement.

Key Takeaways

The global AVOD services market Size is expected to witness high growth, exhibiting a CAGR of 14.% over the forecast period, due to increasing preference for free streaming content among cost-conscious consumers. Rising internet usage and proliferation of smart connected devices also supports the market growth.

Regional analysis: North America dominates the AVOD services market currently due to high smartphone and internet penetration coupled with high awareness. Asia Pacific is expected to grow the fastest during the forecast period owing to rising disposable incomes, growing millennial population, and increasing digitalization in countries like China and India.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it