AVOD Platforms to Generate $66.5Bn Global Ad Revenues by 2026

AVOD spending on TV episodes and movies will climb by 144% between 2022 and 20226 to reach $66bn across 138 countries. The explosive growth of  AVOD services is set to surpass SVOD this year in audience size, and the changing demographics of a free streaming universe that remains young and multicultural while becoming more reflective of a national audience average in education and affluence.

Free streaming's audience will grow larger than paid streaming by mid-2022. AVOD audiences grew twice as fast (+16 per cent) as SVOD (+88 per cent) in 2021. In 2022, the number of AVOD users surpassing SVOD. This attributable to a variety of factors, including subscription fatigue, ubiquitous hardware, cord cutting and increased broadband access. While total view time (TVT) is still led by SVOD, the opportunity for AVOD to expand TVT is forecast to increase due to rising inflationary pressures on household consumable items.

Streaming will become the fastest growing video format in both viewership and media investment. Connected TV and OTT (CTV/OTT) ad spend grew 34 per cent in 2021, compared to 7.4 per cent for global broadcast and cable. The CTVMA forecasts that half of all internet users will use free streaming services by 2024, and by 2026, ad-supported video on demand (AVOD) revenues will triple 2021 levels, reaching an estimated $31.5 billion.

The competition in the streaming market is intensifying as leading providers such as Disney include an advertising option for consumers around the world, while national and international media companies launch proprietary streaming services in home and overseas markets.

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