North America Advertising Video-on-Demand (AVOD) Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

North America Advertising Video-on-Demand (AVOD) Market Trends and Insights

Ongoing Cord-Cutting and Subscription Fatigue

Cord-cutting has become a structural condition for the North America advertising video-on-demand (AVOD) market because it moves viewing time from traditional television packages to streaming services. Traditional bundled pay television fell to 43.2 million US households in 2026, down from 83.5 million households in 2016. Streaming subscription costs rose 19.5% in 2025, while the overall inflation rate was 2.7%, thereby increasing the appeal of free and ad-supported services. Netflix raised the monthly price of its Standard with Ads plan from USD 6.99 to USD 8.99, reinforcing the price difference between paid tiers and free viewing options. Ad-supported tiers accounted for 46% of premium subscription video-on-demand subscriptions in 2026, indicating that advertising inventory is also growing within services that began as subscription-led platforms.^{[1]Video Advertising Bureau, “Rising Tides: 26 Streaming Insights That Are Impacting Marketing Plans in 2026,” Video Advertising Bureau, vab.com.}

Migration of Linear TV Budgets to CTV and AVOD

The shift of advertising budgets from linear television to connected television supports the North America advertising video-on-demand (AVOD) market, as streaming inventory provides a direct alternative for television buyers. Connected TV advertising spending increased 16% in 2025, and digital video represented nearly 60% of total US television and video advertising spending by year-end. A 2026 survey commissioned by Premion found that 70% of US advertisers planned to increase connected TV investment by an average of 17%. The additional investment is expected to come from linear television, digital display, paid search, and social media budgets. National and local linear television advertising, excluding political spending, is projected to decline 2.4% to USD 27.9 billion in 2026, while digital television formats are expected to grow 3% to USD 21 billion. The shift means AVOD providers compete directly with linear sellers for agency relationships and television budgets rather than only seeking new advertising spending.

Demand for Addressable and Measurable Video Advertising

Addressable advertising is a major advantage for the North America AVOD market because advertisers can target audiences more precisely than on traditional broadcast television. The available input projected connected TV revenue at USD 20.5 billion in 2025 and USD 30 billion by 2029, reflecting demand for personalized and outcome-based formats. A 2026 Gracenote survey found that 52% of surveyed U.S. brands in technology, financial services, retail, and healthcare had shifted at least 25% of their paid media budgets to connected TV over the prior 3 years. The same survey found that 32% of brand and agency executives considered their connected TV advertising not very effective. The CIMM and 4A’s study found that fragmented metrics and incompatible identity systems can lead to conflicting measurement results across platforms. This creates a greater opportunity for services that can provide reliable attribution while limiting the complexity advertisers face.

Expansion of FAST and Ad-Supported Streaming Inventory

The expansion of free ad-supported streaming television is increasing the amount of inventory available across the North America advertising video-on-demand (AVOD) market. Amagi recorded 6,500 FAST channel deliveries and reported 55% year-over-year growth in global FAST viewing hours during April through June 2026. The United States and Canada accounted for 54% of viewing hours and 74% of ad impressions in that period, confirming the region’s importance to FAST monetization. FAST reached 131.4 million US viewers in 2026, or 54% of all connected TV users, while daily viewing time was expected to rise 9.9% to 23 minutes per viewer. News programming on FAST increased 40.6% from January 2025, while documentaries and dramas supplied the largest volume of FAST content hours. Content specialization can improve the appeal of FAST inventory to advertisers that seek defined audiences and brand-suitable programming environments.

Content Licensing and Premium Rights Cost Inflation

Rising content acquisition costs constrain the North America advertising video-on-demand (AVOD) market because larger libraries and exclusive programming are needed to compete for viewers and advertising demand. The NBA rights structure, which began with the 2025-26 season, was valued at USD 7.5 billion per year, and Amazon signed an 11-year Thursday Night Football agreement valued at USD 13 billion.^{[2]Amazon MGM Studios, “Amazon Prime Video and the NBA Announce Landmark 11-Year Global Agreement,” Amazon MGM Studios, press.amazonmgmstudios.com.} Netflix’s annual content spending stands at USD 19 billion in 2026, based on its public disclosures. Standard rights reversion windows of 18 to 36 months reduce the duration of exclusive access, which can support high licensing costs. Licensing, windowing, syndication, and royalty requirements impose a greater burden on smaller operators than on vertically integrated platforms with broader negotiating power.

Measurement Fragmentation Across Walled Gardens

Measurement fragmentation is a long-term restraint on the North America AVOD market because advertisers cannot easily compare campaign results across closed streaming platforms. The 2025 CIMM and 4A’s study found that platform-specific metrics, incompatible identity systems, and differing methodologies can create competing versions of truth for advertisers. This makes it harder for buyers to assess incremental reach, control ad frequency, and attribute outcomes across connected TV campaigns. NBCUniversal used 6 measurement vendors for its 2026 upfront, showing that no single provider was considered sufficient for a cross-platform campaign. Omnicom’s Q2 2026 initiative allowed Creative ID data to enter a multi-platform clean-room environment, demonstrating the demand for a more unified approach. The gap favors platforms with strong first-party reporting, while smaller advertisers may delay investment when they cannot independently verify performance across services.

*Our forecasts treat driver/restraint impacts as directional, not additive. The impact forecasts reflect baseline growth, mix effects, and variable interactions.

Segment Analysis

By Content Type: Serial Programming Led Revenue While Documentaries Expanded Fastest

TV Shows and Episodic Content accounted for 38.51% of content-type revenue in 2025. Serial programming provides recurring audiences, predictable session lengths, and familiar advertising breaks that align with established television buying practices. Its broad catalog depth also helps general-entertainment platforms sustain viewing across different times of day. Movies and Films remained an important secondary content category because licensed theatrical titles add inventory and can support longer viewing sessions.

Documentaries are projected to grow at a 9.83% CAGR from 2026 to 2031. The format can appeal to advertisers because its subject matter supports interest-based targeting, and its long-form structure can support viewer completion. Ionic Studios took a strategic equity stake in Documentary+ in June 2026 and became the Publisher of Record for its AVOD and FAST channel business. The transaction reflected growing interest in nonfiction programming as a distinct source of advertising inventory. Other content types, including short-form and creator-led programming, are gaining relevance as platforms add creators who can attract younger audiences that previously engaged less with conventional AVOD formats.

By Device Type: Mobile Led Viewing While Smart TVs Changed Discovery and Ad Sales

Smart TVs are projected to expand at a 9.58% CAGR from 2026 to 2031, making them the fastest-growing device category. Their growth is tied to the television operating system's role in content discovery, advertising delivery, and audience data collection. The Video Advertising Bureau reported that 95% of connected televisions display advertising on the home screen when powered on. This gives device platforms a position in the advertising journey before a viewer enters a streaming application.

Smartphones and tablets accounted for 27.99% of the North America advertising video-on-demand (AVOD) market in 2025. Mobile viewing remains important among younger audiences and in Mexico, where mobile access can precede fixed household broadband. This device base supports continued access to the North America advertising video-on-demand (AVOD) market among consumers who watch short sessions outside the home. A survey of 63 senior streaming executives found that 62% regarded Roku as the most strategically important connected TV platform for home-screen visibility. Laptops and Desktops continued to serve workplace, commute, and remote-viewing use cases, especially for news and business programming. Game consoles and set-top boxes provided a stable, supporting inventory for premium broadcast simulcasts and live events.

By End-User: Media and Entertainment Led Spending While Retail and E-Commerce Grew Fastest

Media and Entertainment accounted for 39.71% share of the North America advertising video-on-demand (AVOD) market size in 2025. The sector has a natural fit with video advertising because its products are promoted in the same screen-based environment in which consumers view content. This alignment can support higher pricing than categories with a weaker connection to entertainment programming. Banking, Financial Services, and Insurance, along with Information Technology and Telecommunications, remained important advertisers because connected TV can support targeted campaigns for financial products and technology services.

Retail and E-Commerce are projected to grow at a 10.06% CAGR from 2026 to 2031. Dentsu reported that off-site retail media represented 53% of brand retail media spending in 2025, with connected TV serving as a major channel for that off-site activity. Walmart, Target, and Amazon announced separate shoppable connected TV initiatives in late June 2026. Education and Healthcare remained smaller advertising categories, but could benefit from streaming environments that offer relevant contextual programming. Documentary and drama content on FAST can reach viewers with above-average educational attainment, which can be useful for education and healthcare advertisers.

By Ad Format: Pre-Roll Held the Largest Position While Mid-Roll Grew Fastest

Pre-Roll held a 40.21% revenue share in 2025. The format appears before the selected content begins, giving advertisers a high-attention placement before viewers start watching a program. Media buyers cited in the supplied research indicated that Netflix's live sports inventory commands premium CPMs. This pricing trend showed that premium streaming sports can achieve rates comparable to historic broadcast sports placements. The placement also allows advertisers to reach viewers at a point of strong intent, before audience attention shifts to the live event or program. As streaming platforms expand their live sports offerings, such inventory is likely to remain attractive to brands seeking broad reach, appointment viewing, and high engagement.

Mid-Roll is projected to grow at a 9.91% CAGR from 2026 to 2031. Amazon increased Prime Video advertising load to 4 to 6 minutes per hour in 2025, from an initial 2 to 3.5 minutes per hour. Post-Roll remained smaller and depends more heavily on completion rates, which can make it better suited to long-form documentaries and other programming with committed audiences. Samsung and Amazon announced remote-enabled Interactive Video Ad technology for Samsung TV Plus at the 2026 IAB NewFronts. The IAB Tech Lab finalized guidance for 6 connected TV ad formats in July 2026, including pause ads, which support broader programmatic use beyond pre-roll placements.

Geography Analysis

The United States held 88.43% of the North America advertising video-on-demand (AVOD) market share in 2025. US connected TV advertising spending stood at USD 37.95 billion in 2026 and is expected to exceed USD 52.53 billion by 2029. The country benefits from a large supply of English-language programming, extensive advertiser demand, and established device ecosystems. Alphabet reported USD 11.055 billion in YouTube advertising revenue for Q2 2026, up 13% year over year, and introduced Buy with Google Pay for direct purchase completion on connected TV. Digital video surpassed linear television for the first time in 2024 and accounted for nearly 60% of total U.S. television and video advertising spending at year-end 2025.

Canada had 26.6 million people reachable with streaming advertising in 2026, representing 78% of adults aged 18 and above. Canada’s digital advertising spending rose 16% year over year to CAD 21.1 billion (USD 15.5 billion) in 2025, while video spending rose 26%.^{[3]IAB Canada, “2025 IAB Canada Internet Ad Revenue Survey and 2026/27 Forecast,” IAB Canada, iabcanada.com.} The Canadian digital advertising sector is projected to reach CAD 24.9 billion (USD 18.3 billion) in 2026. In-stream and connected TV advertising account for much of the video revenue, while direct buying led at 71%.

Mexico is projected to grow at a 9.88% CAGR from 2026 to 2031, the fastest rate in the North America advertising video-on-demand (AVOD) market. Rising smartphone use and price sensitivity favor free viewing options over paid subscriptions. These conditions give the market a different growth base in Mexico than in the United States and Canada. The supplied research identified ViX FAST channels as generating USD 219 million during the 2026-2031 forecast window, while YouTube, Tubi, and Pluto TV were expanding Spanish-language inventory. Pay television is declining as consumers adopt streaming alternatives, including FAST, AVOD, and subscription video services. U.S.-originating platforms can extend Spanish-language libraries into Mexico without incurring the full cost of local production, supporting platform entry and advertising interest.