Advertising (AVoD) - United States

  • United States
  • The Advertising (AVoD) market) market in the United States is projected to reach a revenue of €22.48bn in 2024.
  • This represents a significant growth, with an annual growth rate (CAGR 2024-2027) of 11.35%.
  • By 2027, the market volume is expected to reach €31.04bn.
  • Additionally, the number of users in the Advertising (AVoD) market) market is projected to reach 217.3m users by 2027.
  • The user penetration rate is expected to increase from 61.5% in 2024 to 63.1% in 2027.
  • The United States will generate the highest revenue in the global comparison, with €22.48bn in 2024.
  • Furthermore, the average revenue per user (ARPU) in the Advertising (AVoD) market) market is projected to be €107.90 in 2024.
  • The United States is experiencing a surge in AVoD advertising, with companies investing heavily in digital platforms to reach a wider audience.

Key regions: France, India, Germany, Europe, South Korea

 
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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.

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.

Visión general

  • Revenue
  • Analyst Opinion
  • Users
  • Global Comparison
  • Methodology
  • Key Market Indicators
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