Advertiser-funded Video on Demand (AVOD) is the term used for streaming services funded by advertising, where platforms offer viewers free access to content online and on-demand (via connected TVs, set-top boxes, mobile devices, or PCs) in return for watching ads.
Advertising on AVOD platforms can appear as sponsored content, display banners, and video ads. AVOD includes platforms that focus on TV content, such as Broadcaster Video on Demand (BVOD) platforms from traditional broadcasters and the free ad-supported subscription tiers offered by some hybrid Subscription-based Video on Demand (SVOD) platforms. It also includes video-sharing platforms such as YouTube, which focus on user-generated content (UGC). Further examples of AVOD platforms include Rakuten TV, Roku, and Pluto TV.
Some AVOD providers offer hybrid models — also known as Hybrid Video on Demand (HVOD) — where viewers have an option to pay a subscription fee to watch fewer ads or no ads or to pay a one-off fee to watch premium content.