Advertisers are expected to nearly double their spend on ad-supported video-on-demand in the next five years with AVOD growth outpacing other paid media, according to WARC Data.
The advertising metrics organisation projected that global AVOD spend will reach US$46.6 billion by 2023 – up from US$23.8 billion this year – with China expected to overtake the US to become the world’s largest AVOD market for the first time this year.
While AVOD is still nascent – this year’s expected brand investment equates to a 5.2% share of global ad spend – WARC claims that it is growing ahead of other paid media when compared with data in WARC’s International Ad Forecast.
“Consumers’ voracious appetite for video content anywhere, on any device, has been propelled by SVOD services such as Netflix. But it is AVOD platforms which present the opportunity for advertisers to marry rich consumer data with pinpoint targeting during engaging content,” said James McDonald, data editor, WARC.
“This is why AT&T and Amazon are exploring moves into the AVOD sector next year, with the ultimate aim of taking the lion’s share of a market expected to be worth US$47bn by 2023.”