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Advertising Video-on-Demand (AVoD) - Worldwide

Worldwide
  • Revenue in the Advertising Video-on-Demand (AVoD) market worldwide is projected to reach US$54.54bn in 2025.
  • Revenue is expected to exhibit an annual growth rate (CAGR 2025-2029) of 6.93%, leading to a projected market volume of US$71.31bn by 2029.
  • In the worldwide Advertising Video-on-Demand (AVoD) market, the number of users is anticipated to reach 4.9bn users by 2029.
  • User penetration is expected to be 52.8% in 2025 and is forecasted to increase to 61.0% by 2029.
  • In a global context, the majority of revenue will be generated the United States, which is projected to account for US$27.96bn in 2025.
  • The average revenue per user (ARPU) Worldwidewide Advertising Video-on-Demand (AVoD) market is expected to be US$13.21 in 2025.
  • The global AVoD market is witnessing a surge in demand as consumers increasingly prefer ad-supported streaming options over traditional subscription models.

Definition

AVOD (Advertising-based Video on Demand) refers to the practice of offering video content to viewers for free, with advertisements inserted into the content as a way of monetizing it. AVOD platforms can include streaming services, video sharing sites, and other digital platforms that offer free video content. AVOD advertising can take different forms, including pre-roll ads that play before the content, mid-roll ads that play during the content, and post-roll ads that play after the content. Advertisers can target their ads to specific demographics, interests, or behaviors, and measure their effectiveness through metrics such as viewer engagement, click-through rates, or conversions.

Additional information:

Video on demand advertising comprises advertising spending, users, average revenue per user and penetration. The market only displays B2B spending. Figures are based on music streaming advertising spending and exclude agency commissions, rebates, production costs, and taxes.
In-Scope
  • Pre-roll ads, such as those featured on YouTube and Dailymotion
  • Mid-roll ads, such as those featured on YouTube and Dailymotion
  • Banner ads, such as those featured on YouTube and Vimeo
Out-Of-Scope
  • Video advertising on subscription-based streaming services, such as Netflix and Disney+
  • Audio advertising on music streaming platforms
  • Non-video AVoD-related advertising, such as sponsorships of an AVoD platform's website or merchandise
Video-on-Demand: market data & analysis - Cover

Market Insights report

Video-on-Demand: market data & analysis
Study Details

    Revenue

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Jan 2025

    Source: Statista Market Insights

    Most recent update: Jan 2025

    Source: Statista Market Insights

    Analyst Opinion

    One key trend is the increasing adoption of programmatic advertising, which uses data and algorithms to automate the buying and selling of ad space. This has made AVOD advertising more efficient, scalable, and effective, as advertisers can target specific audiences with relevant ads in real-time. Another trend is the rise of ad-supported streaming services, which offer viewers a way to access premium content for free in exchange for watching ads. This has become a popular model for AVOD platforms, as it allows them to attract and retain a large audience while generating revenue from advertisers.

    Advertising-based video on demand (AVOD) has seen strong growth in recent years, driven by several factors. One key factor is the increasing popularity of online streaming platforms, which offer viewers a convenient and flexible way to access a wide range of content. As more people turn to these platforms for their entertainment needs, there is a growing audience for advertisers to reach. Additionally, AVOD offers several advantages over traditional forms of advertising, such as TV commercials. AVOD ads can be targeted to specific audiences based on their interests, demographics, and viewing habits, which makes them more effective and engaging.

    Users

    Most recent update: Jan 2025

    Source: Statista Market Insights

    Global Comparison

    Most recent update: Jan 2025

    Source: Statista Market Insights

    Methodology

    Data coverage:

    Data encompasses enterprises (B2B). Figures are based on the video on demand advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers video ad formats (web-based, app-based, and connected devices).

    Modeling approach:

    Submarket size is determined by a combined top-down and bottom-up approach. We use market data from industry reports and survey results from our primary research (e.g., Statista Global Consumer Survey) to analyze the markets. Then we benchmark key countries or regions (United States, China, Europe, Asia, and Africa) results with country-specific advertising organizations or associations. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, internet users, and digital consumer spending.

    Forecasts:

    We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

    Additional notes:

    Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.

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    Video-on-Demand: market data & analysis - BackgroundVideo-on-Demand: market data & analysis - Cover

    Key Market Indicators

    Notes: Based on data from IMF, World Bank, UN and Eurostat

    Most recent update: Jan 2025

    Source: Statista Market Insights

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