Connected TV

AVOD Will Gain More Than 3x the Viewers of Subscription OTT in 2023

AVOD Will Gain More Than 3x the Viewers of Subscription OTT in 2023

3 Min Read

Ad-supported video-on-demand (AVOD) is expected to continue its rise in popularity this year. According to new research from eMarketer, AVOD services will eventually overtake subscription OTT video in terms of viewership. That wouldn’t be all too surprising, but the report also indicates that AVOD will attract more than triple the number of viewers compared to paid subscription services. With an estimated increase of 13.3 million viewers (including 4.3 million from free ad-supported platforms) the total number of AVOD viewers is expected to reach 157.1 million. Subscription OTT viewership, on the other hand, will rise by 4.3 million viewers—bringing its total viewership to 222.2 million.

This growth in interest from viewers for ad-supported content is helping to draw even more ad dollars to Connected TV. This year eMarketer reports that CTV is the fastest-growing ad format, with ad spend projected to reach $25.09 billion. As streaming services continue to focus on maximizing profit, those increasing ad dollars—and the AVOD services that serve the ads—will no doubt look more and more attractive. By implementing new advertising plans, like the one that has thus far proven successful for industry leader Netflix, and adopting fresh ad formats, like those introduced by rebranded platforms like Max; AVOD providers are strategically positioning themselves to capitalize on the evolving landscape of Connected TV advertising.

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