Advertising video on demand (AVoD) refers to a type of video on demand service where the user is not asked to pay for the content; however, the revenue is earned from platforms or advertising agencies. Advertising video on demand solutions enables content owners to test, launch, and optimize video content’s Over the Top (OTT) viability. YouTube is an example of the AVoD platform. YouTube allows users to browse the content without any monetization on the content and inserts advertisements while the video is playing. AVoD platform offers a part of the advertisement revenue to the broadcaster as an incentive. To earn the revenue from advertisements, the content owner requires a large audience. It is the audience volume that decides the viability of the business model.
The global advertising video on demand market can be segmented based on content, Ad-type, and region. In terms of content, the global advertising video on demand market can be segregated into media & entertainment, sports, education, travel & tourism, and others. The others segment includes fashion content. The entertainment segment is estimated to hold a larger share of the market during the forecast period. Based on Ad-type, the advertising video on demand market can be divided into pre-roll advertisement, mid-roll advertisement, and post-roll advertisements.
In terms of region, the global advertising video on demand market can be categorized into North America, South America, Europe, Asia Pacific, and Middle East & Africa. North America is estimated to account for a large share of the global advertising video on demand market, followed by Europe. Expansion of the market in North America is primarily supported by Canada and the U.S., attributed to the presence of leading players in these countries. The advertising video on demand market in Europe is estimated to expand at a significant pace due to high rate of adoption of advanced technologies by leading players in the region. However, the advertising video on demand market in Asia Pacific is estimated to expand at a considerable pace during the forecast period. Asia Pacific is expected to create lucrative opportunities for key players operating in the global advertising video on demand market due to significant rise in the number of smartphone users in the region. Larger population in countries, such as South Korea, Japan, Malaysia, Thailand, India, China, and Singapore, is a major driver of the market in the region. The market in Asia Pacific is also expanding due to major initiatives taken by governments to support the video on demand services. The advertising video on demand market is estimated to expand at a significant pace in the Middle East region, as companies in the region are shifting their focus from oil-related businesses to R&D activities and adopting advanced technologies.
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Key players operating in the global advertising video on demand market include Tubi, Inc., PopcornFlix, The Roku ChannelZype Inc. and Muvi LLC. Companies operating in the global market are focusing on introducing unique and hassle free services to their vendors to maintain long-term relationships with clients. Vendors operating in the market have adopted several growth strategy to broaden customer base and increase market share. Business partnerships and technological innovation are prominent strategies adopted by players to maintain a competitive advantage. Companies are focusing on attaining long-term growth through integration and continuous improvement and innovation in advertising video on demand solution offerings. Some of the leading market players are focusing on developing advanced service offerings with unique pricing to strengthen their position in the global advertising video on demand market. Companies operating in the global advertising video on demand market are increasing engaging in mergers and acquisitions. This approach helps the companies to expand and enhance their product and solution offerings in the market.
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