Advertising Video on Demand Market – Global Industry Size, Share, Trends, Opportunity and Forecast, By Type (Pre-Roll Advertisement, Mid-Roll Advertisement, Post-Roll Advertisement), By Content (Media & Entertainment, Education, Others (Sports, etc.)), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 59.91 Billion
CAGR (2026-2031)	6.69%
Fastest Growing Segment	Media & Entertainment
Largest Market	North America
Market Size (2031)	USD 88.36 Billion

Market Overview

The Global Advertising Video on Demand Market will grow from USD 59.91 Billion in 2025 to USD 88.36 Billion by 2031 at a 6.69% CAGR. Advertising Video on Demand constitutes a digital delivery model where viewers access premium video content without subscription fees in return for consuming commercial advertisements. The market is primarily propelled by the fundamental migration of audiences from linear television to streaming environments alongside significant advancements in programmatic technology that enable precise audience targeting. According to the Interactive Advertising Bureau, in 2025, digital video ad spend in the United States was projected to grow by 14 percent to reach 72.4 billion dollars. This substantial investment in a leading region underscores the increasing priority advertisers globally place on ad-supported video formats to engage consumers effectively.

However, a significant challenge impeding broader market expansion is the persistent fragmentation of measurement standards across proprietary platforms. Advertisers frequently encounter difficulties in aggregating performance data because major service providers operate within closed ecosystems that utilize disparate reporting metrics. This absence of a unified currency for cross-platform measurement creates inefficiencies in budget allocation and prevents brands from fully validating their return on investment. Consequently, this lack of transparency can reduce advertiser confidence and restrict the potential scale of capital flowing into the ad-supported video economy.

Key Market Drivers

The migration of advertising budgets from linear television to digital video acts as a primary catalyst for the expansion of the Global Advertising Video on Demand Market. As traditional broadcast viewership declines, brands are aggressively reallocating capital toward Connected TV and streaming environments to maintain audience reach. This shift is driven by the superior targeting capabilities of digital infrastructure which allow for more efficient ad spend compared to the broad and less measurable buying of linear TV. According to Dentsu, June 2025, in the 'Global Ad Spend Forecasts' report, connected television ad spend was forecast to grow by 10.9 percent in 2025 whereas total television spend including broadcast was expected to decline by 1.8 percent. This divergence illustrates the rapid structural rebalancing of media portfolios as advertisers prioritize the addressable nature of on-demand video.

Concurrent with this budgetary shift, the adoption of hybrid monetization strategies by major streaming platforms has significantly expanded the inventory and audience scale of the ad-supported economy. Faced with rising consumer cost sensitivity, premium subscription services have introduced lower-cost, ad-supported tiers to reduce churn and unlock new revenue streams. This strategic pivot has transformed the market by making premium inventory available to advertisers at scale. According to Amazon, November 2025, in a corporate announcement, the Prime Video ad-supported tier reached more than 315 million monthly viewers globally. This substantial influx of viewers into ad-supported environments is further evidenced by other industry leaders solidifying the sector's trajectory. According to Netflix, in November 2025, its ad-supported tier reached 190 million monthly active viewers globally, highlighting how hybrid models are fueling the expansion of the video economy.

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Key Market Challenges

The persistent fragmentation of measurement standards across proprietary platforms stands as a critical barrier to the expansion of the Global Advertising Video on Demand Market. As major service providers operate within closed ecosystems, advertisers are forced to navigate disparate reporting metrics without a unified currency for cross-platform evaluation. This lack of standardization makes it difficult for brands to aggregate performance data effectively, resulting in an inability to compare "apples to apples" regarding reach, frequency, and engagement. Consequently, advertisers struggle to validate the true return on investment, leading to hesitation in committing substantial budgets to these channels.

This opacity results in significant financial inefficiencies that directly restrict market capitalization. When brands cannot accurately verify media efficacy, capital is often misallocated or lost within the complex supply chain. According to the Association of National Advertisers, in 2025, approximately 26.8 billion dollars of global media value remained unrealized due to persistent inefficiencies and opaque supply chains in the programmatic ecosystem. This substantial loss of value erodes advertiser confidence and compels companies to limit their exposure to the ad-supported video economy, thereby slowing the overall growth trajectory of the sector.

Key Market Trends

The proliferation of Free Ad-Supported Streaming TV (FAST) channels is reshaping the market by establishing a distinct consumption model independent of the hybrid subscription tiers utilized by major SVOD services. Unlike paid ad-supported plans, FAST platforms capitalize on audience demand for linear, programmed experiences that require zero financial commitment, effectively capturing viewers experiencing subscription fatigue. This resurgence of "lean-back" viewing has generated massive inventory scale for advertisers seeking reach outside of walled garden subscriptions. According to Fox Corporation, January 2025, in the 'Tubi Surpasses 97 Million Monthly Active Users' corporate announcement, the platform streamed over 10 billion hours of content during 2024, validating the immense engagement migrating to these entirely free ecosystems.

Simultaneously, the integration of shoppable and interactive video advertising formats is altering the utility of the connected television screen by converting passive awareness into active performance. Advertisers are deploying formats that allow viewers to purchase products or redeem offers directly through their remote controls, effectively collapsing the traditional marketing funnel within the living room. This evolution enables brands to attribute direct return on ad spend to CTV investments, moving beyond simple reach metrics. According to Roku, June 2025, in the 'Shoppable TV Advertising' study, combining standard video advertisements with interactive formats delivered a 58 percent increase in unaided brand recall, demonstrating the critical impact of interactivity on modern video strategies.

Segmental Insights

The Media & Entertainment sector is the fastest-growing segment in the Global Advertising Video on Demand Market, driven by the strategic pivot of content creators toward digital monetization. Major broadcasters and production houses are increasingly launching ad-supported streaming services to capitalize on the massive migration of viewership from linear television to online platforms. This shift allows companies to generate substantial revenue from their vast content libraries while catering to cost-conscious audiences. Additionally, the proliferation of smart devices and improved connectivity facilitates seamless access to these services, prompting advertisers to direct significant capital toward this high-engagement environment.

Regional Insights

North America maintains a leading position in the global Advertising Video on Demand market due to widespread high-speed internet availability and the early adoption of connected devices. The region hosts several major streaming service providers, creating a competitive environment that drives service improvements and viewer engagement. Additionally, a significant shift in advertising budgets from traditional television to digital platforms supports this growth. Consumers increasingly prefer ad-supported content to reduce subscription costs, further solidifying the regional market presence. This established infrastructure allows North America to consistently outperform other global regions in revenue generation.

Recent Developments

• In December 2024, a multinational retail corporation completed the acquisition of a prominent smart television manufacturer and its operating system for approximately $2.3 billion. This strategic transaction integrated the TV maker's advertising solutions directly into the retailer's media business, creating a powerful new entity in the Global Advertising Video on Demand Market. The merger combined the retailer’s extensive shopper data with the manufacturer’s viewer insights, enabling more precise targeting and measurement for advertisers. This development significantly accelerated the retailer's ability to sell ads on connected television screens, offering brands enhanced opportunities to reach customers through in-home entertainment.
• In July 2024, a fast-growing ad-supported streaming service officially launched its platform in the United Kingdom, marking a significant expansion in the Global Advertising Video on Demand Market. The service debuted with a robust library of over 20,000 movies and television episodes, sourced from partnerships with major global content distributors. This international rollout was supported by a brand marketing campaign tailored to local audiences, emphasizing a diverse range of free content without subscription fees. The launch introduced a new competitive player to the region's streaming landscape, leveraging machine learning to deliver personalized viewing experiences to British consumers.
• In March 2024, a leading global media conglomerate announced a significant collaboration with two prominent advertising technology firms to expand its proprietary real-time ad exchange. This partnership allowed advertisers to access the company’s premium streaming inventory directly through leading demand-side platforms, streamlining the buying process for its flagship video services. By bridging its technology stack with these external platforms, the company enhanced automation and transparency for marketers in the Global Advertising Video on Demand Market. The initiative aimed to unify access to streaming inventory, enabling greater flexibility and control for advertisers targeting audiences on connected devices.
• In January 2024, a major technology and entertainment company introduced limited advertisements into its streaming service's movies and TV shows across the United States, the United Kingdom, Germany, and Canada. This strategic update in the Global Advertising Video on Demand Market was designed to support increasing investments in compelling content over the long term. While the service automatically incorporated ads for existing members, it also launched a new ad-free tier available for an additional monthly fee. This move aligned the platform with other major competitors in the sector who had already established tiered, ad-supported subscription models to diversify revenue streams.

Key Market Players

• Amazon.com, Inc.
• Alphabet Inc.
• The Walt Disney Company
• Hulu LLC
• Paramount Global
• Netflix, Inc.
• Tubi, Inc.
• Muvi LLC
• Vimeo.com, Inc.
• Roku, Inc.

By Type	By Content	By Region
Pre-Roll Advertisement Mid-Roll Advertisement Post-Roll Advertisement	Media & Entertainment Education Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Advertising Video on Demand Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Advertising Video on Demand Market, By Type:

• Pre-Roll Advertisement
• Mid-Roll Advertisement
• Post-Roll Advertisement

• Advertising Video on Demand Market, By Content:

• Media & Entertainment
• Education
• Others

• Advertising Video on Demand Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE