Global Advertising-based Video On Demand Market Size, Share & Industry Trends Analysis Report By Device, By Vertical, By Advertisement Position (Mid-roll, Pre-roll, and Post-roll), By Enterprise Size, By Regional Outlook and Forecast, 2023 - 2030

Market Report Description

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 1/4^th 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.

KBV Cardinal Matrix - Market Competition Analysis

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.

Market Growth Factors

Increased Use of Mobile Internet

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 Advertising is Becoming Increasingly Popular

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.

Market Restraining Factors

Accessibility of Pirated Video Content on Online Platforms

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.

Advertisement Position Outlook

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.

Device Outlook

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.

Vertical Outlook

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.

Enterprise Size Outlook

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.

Advertising-based Video On Demand Market

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	Increased Use of Mobile Internet Mobile Advertising is Becoming Increasingly Popular
Restraints	Accessibility of Pirated Video Content on Online Platforms

Regional Outlook

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

Strategies deployed in the Market

» Partnerships, Collaborations and Agreements:

• Jul-2023: Brightcove, Inc., came into partnership with PubMatic, an independent technology company delivering digital advertising’s supply chain of the future. PubMatic's programmatic ads and Brightcove's video platform partnered to boost demand for Brightcove Ad Monetization, which aimed to improve content monetization for media firms.
• Jun-2023: IBM Corporation and Adobe, changing the world through digital experiences, expanded their partnership, utilizing advanced AI like Adobe Sensei GenAI and Adobe Firefly. Both companies leveraged AI-accelerated content supply chains and IBM Consulting to aid clients in enhancing content supply chains, fostering collaboration, creativity, speed, and project visibility.
• Jun-2023: Dailymotion Advertising collaborated with Amazon's DSP, an American multinational technology company focusing on e-commerce, cloud computing, etc. This integration facilitated advertisers in targeting of specific and exclusive audiences via Dailymotion Advertising's instream video inventories within Amazon's DSP framework. Through this collaboration, advertisers gained access to their video audiences, which encompassed most of internet users in France and over 400 million monthly unique users globally.
• May-2023: Google, Inc. expanded their partnership with SAP SE, develops enterprise software to manage business operations and customer relations, to introduce a comprehensive open data solution. The solution will help customers to build a complete data cloud that conduct data from their enterprise landscape via SAP Datasphere and Google's data cloud. Additionally, the solution will allow businesses to monitor their real-time data holdings, maximizing the value of Google Cloud and SAP software investments.
• Jan-2023: Brightcove came into partnership with Magnite, a US-based online-advertising supply-side platform provider. The partnership involves Maginte providing advertising services to any Brightcove client. Additionally, the partnership is a major step for Brightcove towards providing their customers with supreme, world-class solutions.
• Sep-2022: Dailymotion collaborated with CNBC Arabia, the UAE-based free-to-air TV channel, as part of its expansion strategy in the MENA region. CNBC Arabia integrated the Dailymotion Player solution across their properties to enhance their video content approach. The partnership was anticipated to enrich CNBC Arabia's video strategy and deliver an exceptional viewing experience to their audience.
• Jul-2022: Dailymotion extended its partnership with TripleLift, the ad tech firm revolutionizing ad placement, aimed at enhancing their respective services. The collaboration involved a specially designed Open Real Time Bidding (oRTB) integration for Dailymotion, enabling the monetization of in-stream inventory and the progression of unique, customized native ad units.
• Feb-2022: Dailymotion announced an agreement with Stringr, the award-winning video sourcing, production, and management platform for journalism, entertainment, and corporate content. Under the agreement, Stringr will enable the distribution of its news segments through Dailymotion, bringing impactful news stories of the day to millions of global viewers. Additionally, Dailymotion has expanded their network of top-notch news publishers, providing audiences with an even broader array of up-to-the-minute news content.
• Dec-2021: Kaltura, Inc. extended its collaboration with Verbit, a prominent transcription and captioning company. Verbit's capabilities, including adaptive automatic speech recognition, were integrated into Kaltura's offerings. This partnership elevated Kaltura's video and audio experiences for their customers in the education and corporate sectors by providing improved captions and searchable video features.
• Jul-2021: Brightcove partnered with Wibbitz, a US-based developer of automated video creation tools. The combination provides organizations with easy, simple, and efficient ways to design short-form videos of professional quality.
• Jul-2021: Vimeo.com, Inc. collaborated with TikTok, a prominent platform for short-form mobile videos, that merged Vimeo's robust video capabilities with the TikTok platform. The partnership enabled SMBs to leverage Vimeo's extensive video toolkit in conjunction with TikTok's extensive audience reach. Additionally, the collaboration led to the creation of exclusive custom video templates within Vimeo Create, specially optimized for the TikTok platform.
• Mar-2021: Vimeo Collaborated with Tessitura, a top-tier CRM system catering to cultural, educational, and performing arts institutions. This partnership provided direct access to Vimeo's comprehensive over-the-top (OTT) video features via the Tessitura platform. The integration of Vimeo's OTT platform with Tessitura's payment pathway marked a significant advancement, enriching the digital experience offered to audiences worldwide.
• Mar-2021: Google cloud, a subsidiary of Google, Inc. came into partnership with Nokia, a technology leader across mobile, fixed and cloud networks, to develop new, cloud-based 5G radio solutions. Both companies partnered to merge Nokia's RAN technologies (Radio Access Network, Open RAN, Cloud RAN) with Google's edge computing platform, creating solutions for essential global 5G business scenarios.

» Product Launches and Product Expansions:

• Aug-2023: IBM Corporation unveiled the inaugural ad campaign for Watsonx, their AI platform. The campaign aimed to clarify AI's potential and position Watson as a transformative force for business leaders seeking innovative AI solutions. Through this campaign, IBM strengthened the message of AI's transformative impact on business, amplifying productivity, and aiding customers in enhancing their results.
• Jul-2023: Kaltura, Inc. unveiled upgrades to its Cloud TV and Streaming Platform, customized to cater to TV operators and media clients. These improvements, aimed to enhance the user experience and enable revenue growth through supplementary product features. The latest additions to Kaltura Cloud TV and Streaming Platform were accessible across various devices, including STBs, Android and Apple TV, smart TVs, as well as mobile and web platforms.
• Jul-2023: Vidyard introduced a significant update that prominently featured AI in its innovation and value-creation approach. Spearheaded by the AI Script Generator, this update aimed to enable additional sales professionals and go-to-market teams to adopt video as an established method to distinguish themselves with potential clients, generate new revenue avenues, and offer remarkable purchasing experiences.
• May-2023: IBM Corporation rebranded its long-standing AI system, Watson, with the launch of the Watsonx platform. This included Watsonx.ai, Watsonx.data, and Watsonx.governance, with a model library hosting trained foundation models like Fm.code, Fm.NLP, and Fm.geospatial, set to be generally available in July.
• May-2023: Google, Inc. revealed its plans to integrate generative AI capabilities into its products, such as Search and Gmail. Additionally, Google intended to utilize PaLM 2-powered tools for advertisers to create media and suggest YouTube video ideas. For creators, the tech experimented by offering five topic-based video ideas.
• Mar-2023: Brightcove, Inc. introduced Brightcove Ad Monetization, a tailored service for enhancing content monetization among media firms. Brightcove Ad Monetization reinforced the offering top-notch products and services to empower company's media clients, ensuring their video content is enhanced and advertising strategies are optimized. Additionally, the company established a global advertising operations team to assist media organizations in optimizing their advertising strategies and revenue generation.

» Acquisitions and Mergers:

• Dec-2022: IBM Corporation announced its acquisition of Octo, a U.S.-centered provider of IT modernization and digital transformation services to the federal government. This acquisition positioned IBM as a major digital transformation partner for the government. The amalgamation of Octo's proficient team and IBM's consulting prowess facilitated quicker federal client transformation and enhanced citizen service.
• Jan-2022: IBM Corporation announced the acquisition of Envizi, a prominent provider of data and analytics software for environmental performance management. This moves expanded IBM's commitment to AI-driven software, including solutions like IBM Maximo asset management, IBM Sterling supply chain, and IBM Environmental Intelligence Suite. This acquisition aimed to support organizations in establishing resilient and sustainable operations and supply chains.
• Dec-2021: com, Inc. completed the acquisition of WIREWAX, a frontrunner in interactive and shoppable video, and Wibbitz, a distinguished enterprise video creation suite. These acquisitions infused Vimeo's comprehensive video solution with proprietary technology and products, bolstering its standing as the go-to professional video software for businesses. The collaboration aimed to accelerate innovation and empower companies to harness the potential of top-notch video content.

Scope of the Study

Market Segments Covered in the Report:

By Device

• Mobile
• Laptops & Tablet PCs
• Console
• TV

By Vertical

• Retail & Consumer Goods
• Media & Entertainment
• BFSI
• Education
• IT & Telecom
• Healthcare
• Others

By Advertisement Position

• Mid-roll
• Pre-roll
• Post-roll

By Enterprise Size

• Large Enterprises
• SMEs

By Geography

• North America
  • US
  • Canada
  • Mexico
  • Rest of North America
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Singapore
  • Malaysia
  • Rest of Asia Pacific
• LAMEA
  • Brazil
  • Argentina
  • UAE
  • Saudi Arabia
  • South Africa
  • Nigeria
  • Rest of LAMEA

Key Market Players

List of Companies Profiled in the Report:

• Brightcove, Inc
• Facebook (Meta Platforms, Inc.)
• IBM CORPORATION
• Kaltura, Inc.
• Vidyard
• Vimeo.com, Inc.
• Google LLC (YouTube)
• Dacast
• Dailymotion (VIVENDI)
• Muvi