AVOD Services Reached $1.9 Billion in Ad Revenue During Q1

2 Min Read

Consumers are continuing to cut-the-cord on their cable subscriptions in favor of other viewing formats. Nielsen found that total time spent watching linear TV by consumers has dropped—down 5% to 2.89 billion minutes. As a result, it looks like some advertisers are also spending less through this channel. A recent report from MoffettNathanson Research analysis found that while total Q1 American linear TV advertising spend was up 4.7% (reaching around $9.1 billion), without NBC’s Winter Olympics that spend would have dropped by 2.6%.

Advertising video-on-demand (AVOD), on the other hand, saw a huge jump in ad revenues during the same time period. MoffettNathanson’s report found that AVOD services were up 63% to $1.9 billion in ad revenue in Q1, and suggested that this was a result of changing campaign priorities by advertisers, “to the extent AVOD can capture digital demand shifting for more brand-focused campaigns, then this may insulate the impact from weaker linear TV ratings as well.” The AVOD service that saw the most growth, Peacock (which benefited from the Winter Olympics), rose 420% to $378 million in ad dollars spent on their platform. However, Hulu still leads the AVOD space, and grew 25% to $877 million.

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