17% of U.S. internet users viewed one or more AVOD services in the past month, vs. just 13% in the third quarter of 2019, according to a survey conducted by UK research firm Ampere Analysis. The research company says Tubi, recently purchased by Fox for $440 million, is leading the usage surge, based in large part by its extra-large content library, which features more than 29,000 movies and TV show episodes.
Subscription streaming video’s alter-ego, advertising-supported VOD, continues to gain traction among consumers — and advertisers. New data from eMarketer suggests AVOD revenue will grow more than 25% this year compared to 2019.
When TV advertising finds a new normal after the pandemic, targeted ads are more likely to be a bigger part of the ad mix, experts say. They also predict some “share shifting” of ad dollars away from broadcast TV toward ad-supported streaming services, social apps (such as TikTok) and other emerging video categories. And they said the pullback by some advertisers, including ones in travel-related businesses, has led to increased opportunities to advertise on platforms that are seeing a surge in viewing, including connected TV and over-the-top outlets, at reduced rates.