avod

Advertising Video on Demand (AVOD) is a video streaming model in which viewers can watch content at no or low direct cost, with revenue earned primarily from advertising. Ads are typically shown before, during, or after playback and may be targeted based on user data and viewing behavior. This model contrasts with subscription video on demand (SVOD), where access is paid by subscribers, and with transactional video on demand (TVOD), where users pay per title.

AVOD platforms range from large licensed catalogs to aggregators of free, user-generated and curated content. Examples include YouTube, Pluto TV, Tubi, and the free tiers of hybrid services such as Peacock and Hulu. In some markets, dedicated FAST (free ad-supported streaming television) platforms resemble traditional TV with ad-supported channels and on-demand libraries.

Revenue is driven by advertising impressions, sold through direct deals or programmatic markets, with pricing based on metrics such as CPM. Advertisers may use demographic, interest, and contextual targeting to reach audiences. The model can provide broad reach and low entry barriers for viewers, supporting content discovery and a larger potential audience for creators and distributors.

Challenges include maintaining an acceptable ad experience, competing with SVOD for viewer time, ad-blocking efforts, fragmentation across platforms, and privacy concerns around data collection. The AVOD approach has grown alongside the expansion of connected devices and digital advertising, and remains a major segment of the streaming landscape.