Global Ad-Supported Video on Demand Market: Overview
The demand for ad-supported video on demand technology is increasing as advertisers play advertisements using this technology. Ad-supported video on demand is a widely preferred revenue model as the advertisements are integrated with videos having a wide audience and can be managed to get a lot of views. For example, news sites are combined with business advertisements to get a lot of views. Video service providers are demanding ad-supported video on demand for advertisements as monetization of video services is available, but a video on demand is converted to ad-supported by adding advertisements in videos streaming.
The ad-supported video on demand (AVOD) is an advertisement-based revenue model and users are not paying any amount for such advertisements. Using the ad-supported video on demand free content is delivered to users screen to watch online, and also contains commercials or advertisements. In a way, the service provider is delivering video content in exchange for spending time watching advertisements
Global Ad-Supported Video on Demand Market: Drivers and Restraints
Major factors driving the growth of the ad-supported video demand market include the increasing number of mobile subscriptions and the high adoption of mobile connected devices, especially smartphones, in developing countries as smartphones are the major media for consumption of video services. Currently, OTT content and related services are more perceived to be attractive and are being adopted as feasible alternatives for entertainment and due to this trend, advertisers also prefer this technology. Viewer preference is also changing to better managed video services, such as YouTube, so the audience traffic can be easily tracked on a real-time basis, using which advertisers are streaming advertisements to generate more revenue from views. Other factors driving the ad-supported technology market include the availability of better network connections for playing advertisements and availability of new features and advanced capabilities in smartphones. On the other hand, unavailability of the required bandwidth in developing or underdeveloped countries, player/UI functionality and privacy issues are the major challenges associated with the growth of the ad-supported video on demand market.
Global Ad-Supported Video on Demand Market: Segmentation
The ad-supported video on demand market can be segmented on the basis of content type and access type. Based on the content type, the ad-supported video on demand market can be segmented into entertainment and infotainment, food, travel and fashion, gaming & sports, and others. Segmentation on the basis of content type is performed on the basis of the type of content used in providing advertisements when the videos are played by end users. Based on access type, the ad-supported video on demand market can be segmented as OTT streaming devices, desktop & laptops, smartphones & tablets, smart TVs, and others.
Global Ad-Supported Video on Demand Market: Industry Key Players
Key vendors in the ad-supported video on demand technology market are Hulu, Muvi LLC, Comcast Corp., Koala, Nielsen, Canoe Ventures LLC, Vdopia, Inc., Value Click Media, Tremor Media, Specific Media, Telaria, Inc., and others. These vendors are constantly innovating to sustain the competition and attract more customers.
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The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments. The report also maps the qualitative impact of various market factors on market segments and geographies.
The demand for ad-supported-video-on demand technology is primarily driven by advertisers that use this technology to run their advertisements. This technology is gaining preference as a revenue model amongst the advertisers as advertisements when integrated with videos gain a larger audience. Business advertisements in combination with news sites are the most evident example of ad-supported video. Demand for ad-supported videos has increased from the video service providers who want to monetize their videos with the help of advertisements.
Over The Top (OTT) content has become a major trend in the market, attracting the video service providers, creating new opportunities for the advertisers. Better managed video services such as YouTube are gaining preference amongst the viewer, creating revenue prospects for the advertisers.
Entertainment and infotainment content along with the travel and fashion segment generate major revenue in the global ad-supported-video-on-demand market. Other prominent content types are food, gaming, and sports. In terms of access types, OTT streaming devices are gaining rapid popularity in the market. Desktops & laptops, smart TVs, and smart devices are the other major access types available in the market.
Major players established in the global market include Muvi LLC, Vdopia, Inc., Koala, Nielsen, Specific Media, Value Click Media, and Canoe Ventures LLC.