What is Ad-Supported Video on Demand (AVOD)?
Ad-Supported Video on Demand (AVOD) is a streaming model where users can watch video content for free or at a lower cost, with advertisements integrated into the viewing experience. Unlike Subscription Video on Demand (SVOD), which relies on recurring fees, AVOD generates revenue through ad placements that appear before, during, or after the content.
Platforms such as YouTube, Tubi, and Pluto TV operate under this model, providing users with unrestricted access to vast libraries of movies, TV shows, and original programming without the barrier of a subscription. For marketers, AVOD is an attractive space where audience attention is high, and content consumption is driven by its accessibility and convenience.
Why AVOD Matters for Marketers
AVOD sits at the intersection of engagement and advertising opportunity. With the growing demand for free, on-demand entertainment, this model is opening new ways for brands to reach consumers directly within premium content environments.
The global AVOD market is projected to surpass $91 billion by 2028, powered by the increasing adoption of smart TVs, mobile devices, and connected ecosystems. For mobile marketers, this means expanded reach—particularly among younger audiences and emerging markets where users prefer ad-supported experiences over paid subscriptions.
The beauty of AVOD lies in its unique blend of user choice and advertiser visibility. Viewers willingly opt in to watch ads in exchange for content access, making ad impressions more valuable and often less intrusive than traditional formats. This mutual benefit is a key factor in the success of AVOD.
How AVOD Works
AVOD platforms rely on a steady flow of advertisers who pay for video ad slots—ranging from pre-roll to mid-roll and interactive placements. Advanced targeting capabilities allow advertisers to deliver contextually relevant ads based on user demographics, interests, or viewing behavior.
The model benefits all parties involved:
- Viewers enjoy free access to entertainment.
- Platforms earn steady ad revenue.
- Advertisers reach audiences in an environment where attention is already captured.
The data-driven nature of AVOD makes it a goldmine for performance marketing. By analyzing completion rates, engagement patterns, and device usage, marketers can optimize campaigns for better results and retarget users across multiple touchpoints.
The Mobile Edge
Mobile devices play an increasingly dominant role in AVOD consumption. Many users stream short-form and long-form content directly from their smartphones, whether through standalone apps or social media integrations. It creates an opportunity for brands to craft vertical, mobile-optimized video ads that blend naturally into the content experience.
In regions where mobile internet drives digital entertainment, AVOD platforms are key entry points for reaching new consumers. For marketers, mobile AVOD campaigns offer precision targeting, measurable engagement, and scalable reach—all critical components of modern digital advertising.
The Future of AVOD
As more SVOD platforms introduce hybrid, ad-supported tiers, the line between subscription-based and free streaming continues to blur. Exciting innovations like interactive ads, shoppable video formats, and AI-driven personalization are reshaping how brands engage with audiences, opening up a world of potential for the future of AVOD.
For mobile marketers, AVOD represents a fast-evolving ecosystem where creativity meets analytics. The key lies in delivering value—ads that entertain, inform, and resonate—within an experience users choose to engage with. In the streaming world, attention is currency, and AVOD offers one of the richest opportunities to earn it.