New AVOD opportunities expected to prop US online video ad revenue to $27 billion in 2023

New Ideas in MarketingEssential news for marketers, summarised by YouGov
December 17, 2019, 6:48 AM UTC

Recent entrants like Apple TV+ and Disney+ are expanding the ad inventory.

This article cites an IHS Markit report predicting that 2020 will see more ad-supported video on demand (AVOD) services being provided following the launch of Disney+ and Apple TV+. These AVOD opportunities are expected to increase the US online video ad revenue to $27 billion in 2023.

Sarah Henschel, senior research analyst at IHS Markit says data strategy, user acquisition and content will determine the success or failure of AVOD players. So far, Disney+ has generated a $20 million in app revenue which can be an indicator of the role smartphones and tablets play in daily video consumption.

The dynamic AVOD space could “create opportunities and confusion for advertisers”. Also, more placement options for TV ads can lead to further fragmentation.

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