Here’s how advertisers are approaching AVOD services, and how they can navigate ongoing challenges in the buying process

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Insider Intelligence

DIGITAL MEDIA

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As cord-cutting shifts the revenue model of media companies, the ad-supported streaming space is poised to take off — here are the key players brands need to know, and how to work with them



* This chart and data were pulled from The AVOD Ecosystem Report by Insider Intelligence. Purchase the report here to get immediate access to the full analysis.
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Ad-supported OTT services are proliferating alongside SVOD services—and ad spend that goes toward these services will grow as US households increasingly adopt connected-TV devices, access a growing number of ad-supported streaming services on those devices, and as cord-cutting erodes audience reach on traditional TV.

Two major subsets of premium AVOD will capture the majority of ad spending increases flowing into ad-supported OTT services. These include hybrid subscription-based AVOD services (like Hulu) and free AVOD services, which include platforms operated by media companies, CTV hardware-makers, and Amazon.
  • Hybrid VOD services — which charge a monthly fee for access in addition to having some ads — are emerging as a viable business model for new-to-market SVOD services. Notably, these services are subscription-based, but each also offers ad-supported tiers at lower price points compared with their ad-free tiers of service.
  • Among these services, the biggest current player in terms of both total users and ad spend is Hulu. Hulu will generate $2.23 billion in US net ad revenue in 2020, up 18% year-over-year (YoY) from $1.89 billion in 2019, per eMarketer estimates updated in June.
  • Usage on free AVOD services is growing, but as a category, these services make up part of the long tail of time spent that goes to streaming video. While usage is growing in terms of monthly users and viewing hours, usage metrics among these services are typically...
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