AVOD Platforms Forecast To Grow To $18 Billion By 2025

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AVOD Platforms Forecast To Grow To $18 Billion By 2025

Advertising video-on-demand platforms (AVOD)– a subset of all connected TV — are expected to see skyrocketing growth over the next four years, rising to $17.8 billion, according to MoffettNathanson Research.

AVOD platforms were estimated to come in at $4.4 billion in 2020, with Hulu grabbing the bulk of that market — $2.5 billion.

In 2025, the analysis company projects that of the nearly $18 billion for AVOD, $5.3 billion will go for Hulu; $4.4 billion for Roku; $2.3 billion each for Peacock and Pluto; $1.9 billion for Tubi; and $500 million for HBO Max (an ad option yet to start.)

Looking at individual AVOD platforms, Hulu (its AVOD service) pulled in $653 million in advertising revenue in the fourth quarter. Pluto and Roku Channel, each had $173 million and Tubi hit $105 million.

In terms of total advertising minutes per hour of programming, Hulu was at 10 minutes; Pluto, 10 minutes; Roku Channel, 8 minutes; and Tubi, 5 minutes.

MoffettNathanson says the Roku Channel represented 65% or more of all Roku video ad revenues. The entire Roku platform’s advertising revenue for the fourth quarter was $265 million overall.

A smaller piece of its advertising revenue comes through ad revenue sharing agreements with premium video platforms carried on the Roku platform overall. For example, MoffettNathanson guesses Roku gets 15% share of ad inventory on Peacock.

For 2020, a connected TV projection from eMarketer says the total CTV ad market was at $8 billion in revenue. This accounts for all digital advertising that appears on home screens and in-screen video advertising, as well as YouTube’s video ad dollars.

Originally published by
Wayne Friedman | March 8, 2021
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