The Global Advertising-based Video On Demand Market size is expected to reach $219.6 billion by 2030, rising at a market growth of 30.2% CAGR during the forecast period.
Retailers & consumer goods manufacturers use AVOD platforms to promote their brands and products through customized advertisements. Therefore, the Retail & Consumer Goods segment is anticipated to capture approximately 1/4th share of the market by 2030. In addition, the retail industry frequently emphasizes ads that showcase their products, spotlight promotional offers, or tell brand stories to attract viewers' attention and increase consumer engagement. In addition, AVOD platforms frequently present businesses with the chance to include e-commerce functionality in their video content. This simplifies the purchasing process by enabling viewers to buy or learn more about the products featured in the videos without exiting the AVOD site.
The major strategies followed by the market participants are Partnerships as the key developmental strategy in order to keep pace with the changing demands of end users. For instance, In June, 2023, Dailymotion Advertising collaborated with Amazon's DSP for integration facilitated advertisers in targeting of specific and exclusive audiences via Dailymotion Advertising's instream video inventories within Amazon's DSP framework. Additionally, In June, 2023, IBM Corporation extended their partnership Adobe to aid clients in enhancing content supply chains, fostering collaboration, creativity, speed, and project visibility.
Based on the Analysis presented in the KBV Cardinal matrix; Google, Inc. is the forerunner in the Market. In May, 2023, Google, Inc. expanded their partnership with SAP SE to introduce a comprehensive open data solution and build a complete data cloud that conduct data from their enterprise landscape via SAP Datasphere and Google's data cloud. Companies such as Facebook (Meta Platforms, Inc.), IBM Corporation, Dailymotion are some of the key innovators in the Market.
Customer viewing experiences are improved by the prevalence of binge-watching on streaming services. Mobile devices have greatly enhanced the experience. They offer a form of convenience along with a much-needed viewing experience. Additionally, the continuous incorporation of multiple contents across mobile devices allows high-speed Internet-enabled users to view the content anytime and anywhere. Monthly user growth is fueled by service providers' alluring data packages and millennials' evolving video viewing habits. As a result, the market is expanding as a result of both the rising number of smartphone subscriptions and a need for more bandwidth per subscription.
Mobile applications have emerged as an opportunity for advertisers to broaden their reach. The inclination of consumers for mobile platforms has increased due to the growing adoption of reasonably priced mobile computing devices like smartphones and tablets. The predominant method for consuming information has changed to mobile devices. One of the primary sources of revenue for application developers is mobile advertising. In 2020, when the demand for amusement was high, and people had access to various home devices, they opted for mobile services. Consequently, the number of new application installations is increasing, boosting AVOD platform revenue and resulting in market expansion.
The video piracy market is expanding, limiting the AVOD market's expansion. The increasing popularity of torrents is one of the main threats. A torrent is a digital file containing metadata. With applications like BitTorrent, users can download VOD utilizing torrent files. The cost of subscribing to all of these services is substantial. However, torrents provide a singular download source for all such content. Compared to AVOD streaming services, torrents can share largely ad-free content. As a result, many users prefer to use torrents rather than pay for these services, which poses a substantial obstacle to the AVOD market's expansion in the coming years.
By advertisement position, the market is divided into pre-roll, mid-roll, and post-roll. The pre-roll segment covered a considerable revenue share in the market in 2022. Before the primary video or audio content commences, pre-roll advertising is displayed. Furthermore, streaming services, podcasts, and online video platforms also have much of this advertising. Before the listener or viewer can access the desired content, a pre-roll advertisement first appears at the beginning of the content and is typically played automatically. Furthermore, the duration of pre-roll advertisements can vary, but they are typically kept brief. Pre-roll advertisement durations can differ from a few seconds to one minute, with 15 to 30 seconds being the most popular.
On the basis of device, the market is fragmented into laptops & tablet PCs, mobile, console, and TV. The laptops and tablet PCs segment acquired a substantial revenue share in the market in 2022. Due to their larger displays and more immersive viewing experience than mobile phones or smartphones, laptops and tablets are popular video consumption devices. Numerous individuals choose these devices for long-form viewing, such as watching movies, television series, or online videos. In addition, laptop and tablet devices capitalize on technological advances and enhanced connectivity. Users may experience a smooth and immersive experience on these devices because of increased screen resolutions, more powerful computing power, and faster internet speeds.
Based on vertical, the market is segmented into media & entertainment, BFSI, education, retail & consumer goods, IT & telecom, healthcare, and others. The education segment procured a promising growth rate in the market in 2022. AVOD is also gaining popularity in the education sector, allowing students to access educational content for free while still generating advertising revenue. This strategy is popular among educational organizations and educators since it enables them to reach a larger audience without incurring expenses. In addition, AVOD allows targeted advertising, thereby helping both the viewer and the advertiser.
By enterprise size, the market is categorized into small & medium enterprise (SME) and large enterprise. The small & medium enterprise (SME) segment garnered a significant revenue share in the market in 2022. AVOD platforms offer SMEs a low-cost advertising channel to promote their products and services. Additionally, SMEs can reach a large audience while avoiding the high expenses associated with traditional advertising techniques by utilizing the advertising-based video on demand platform. They may increase brand recognition by developing commercials that resonate with their target audience. Additionally, SMEs serve certain regional or specialty markets. They can utilize AVOD platforms to target local or niche audiences.
| Report Attribute | Details |
|---|---|
| Market size value in 2022 | USD 28.8 Billion |
| Market size forecast in 2030 | USD 219.6 Billion |
| Base Year | 2022 |
| Historical Period | 2019 to 2021 |
| Forecast Period | 2023 to 2030 |
| Revenue Growth Rate | CAGR of 30.2% from 2023 to 2030 |
| Number of Pages | 350 |
| Number of Table | 483 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling |
| Segments covered | Device, Advertisement Position, Enterprise Size, Vertical, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. In 2022, the North America region led the market by generating the highest revenue share. Several prominent AVOD platforms with a significant presence in the North America region are responsible for the growth. Various free, ad-supported material is available to viewers on platforms including YouTube, Hulu, Tubi, Facebook, and Roku Channel, which have established themselves as significant players.
Free Valuable Insights: Global Advertising-based Video On Demand Market size to reach USD 219.6 Billion by 2030
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Brightcove, Inc., Facebook (Meta Platforms, Inc.), IBM Corporation, Kaltura, Inc., Vidyard, Vimeo.com, Inc., Google LLC (YouTube), Dacast, Dailymotion (VIVENDI), and Muvi
By Device
By Vertical
By Advertisement Position
By Enterprise Size
By Geography
This Market size is expected to reach $219.6 billion by 2030.
Increased Use of Mobile Internet are driving the Market in coming years, however, Accessibility of Pirated Video Content on Online Platforms restraints the growth of the Market.
Brightcove, Inc., Facebook (Meta Platforms, Inc.), IBM Corporation, Kaltura, Inc., Vidyard, Vimeo.com, Inc., Google LLC (YouTube), Dacast, Dailymotion (VIVENDI), and Muvi
The Mid-roll segment acquired the highest revenue in the Market by Advertisement Position in 2022; thereby, achieving a market value of $106.9 billion by 2030.
The Mobile segment is leading the Market by Device in 2022; thereby, achieving a market value of $98.0 billion by 2030.
The North America region dominated the Market by Region in 2022, and would continue to be a dominant market till 2030; thereby, achieving a market value of $78.9 billion by 2030.
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