AVOD
Also called: Ad-supported Video On Demand, advertising-funded, advertising-supported, advertising-based or ad-based video on demand.
AVOD (Ad-supported Video On Demand) is a streaming model in which viewers select video content from an on-demand catalogue and advertising funds some or all of the service. Ads may appear before, during or after the selected programme and can be delivered dynamically. AVOD services commonly provide free access, although some combine advertising with a subscription fee.
Detailed definition
What does AVOD mean?
AVOD stands for advertising-based video on demand, also described as advertising-funded or ad-supported video on demand.
In an AVOD service, viewers decide what to watch and when to watch it, while the provider generates revenue by placing advertisements around or within the content.
Many AVOD services are free to viewers (e.g: Youtube). However, free access is not an absolute requirement in every industry definition. Some organisations use AVOD broadly enough to include lower-cost subscription tiers that also show advertising. Other frameworks classify services combining subscription payments and advertising as hybrid video on demand (HVOD).
How does AVOD work?
A typical AVOD session follows this process:
The viewer selects content. Unlike a scheduled channel, the viewer chooses a film, episode, clip, user-generated content or programme from a catalogue.
The platform identifies advertising opportunities. Ad markers or playback rules determine where advertisements can appear, such as before, during or after the programme.
An ad decision is made. An ad server may choose an advertisement using information such as the content category, device, location, campaign rules or consented audience data.
The advertisement is inserted. Client-side ad insertion requests ads through the viewer’s application, while server-side ad insertion can combine advertising and programme content into a more continuous stream.
Playback and measurement data are recorded. The platform may report impressions, completed views, errors and other events used for campaign measurement and revenue calculation.
Is AVOD always free?
AVOD is commonly free to viewers, but the term is also used for services that combine advertising and subscription revenue.
For clarity, a paid service with advertisements can be described as an ad-supported subscription tier or a hybrid subscription-and-advertising model.
AVOD compared with other viewing models
| Model | How viewers access content | How it is funded |
|---|---|---|
| AVOD — Advertising-funded video on demand | Viewers select a title and start playback when they choose. | Advertising, sometimes combined with subscription fees. |
| SVOD — Subscription video on demand | Viewers access an on-demand catalogue through a subscription. | Recurring subscription fees; some tiers also carry advertising. |
| TVOD — Transactional video on demand | Viewers rent or purchase individual titles. | Payments for each title or transaction. |
| FAST — Free ad-supported streaming television | Viewers tune into scheduled linear streaming channels. | Advertising, with no subscription charge for channel access. |
What is the difference between AVOD and FAST?
AVOD and free ad-supported streaming television (FAST) both use advertising, but they describe different viewing experiences:
AVOD is on demand: The viewer chooses a particular title and starts it when desired.
FAST is linear: The viewer joins a scheduled channel and watches whatever is currently playing.
AVOD and the tech stack
Launching and operating an AVOD service requires more than inserting advertisements. Media teams must prepare and manage content, metadata and advertising opportunities across the full distribution workflow.
Typical operational requirements include:
Ingesting and cataloguing programme assets.
Confirming territorial, platform and advertising rights.
Creating streaming renditions for different devices and connection speeds.
Preparing clean masters and, where necessary, versions containing ad markers.
Managing captions, subtitles, audio descriptions and localized versions.
Associating titles with accurate editorial and advertising metadata.
Applying content and advertising compliance rules.
Packaging and delivering content to an OTT platform.
Checking programme and advertisement playback through automated and manual QC.
Monitoring availability windows, failures and delivery status.
A Media Asset Management (MAM) or media supply chain platform can support these processes by connecting content, metadata, processing tools and distribution destinations. However, a MAM does not automatically constitute an AVOD service: the consumer application, video player, content delivery infrastructure and advertising technology are also required.
External references
Amazon Ads: AVOD, SVOD and TVOD explained — viewing models and AVOD versus FAST.
IAB UK: Advertiser VOD — definition and hybrid funding models.
Examples: Tubi: Why are there ads? and Pluto TV.
Related terms
VOD (Video on demand): The broader viewing model in which viewers choose when to start content.
FAST (Free ad-supported streaming television): Scheduled, advertising-funded streaming channels.
SVOD (Subscription video on demand): Subscription-based access to an on-demand catalogue.
TVOD (Transactional video on demand): Rental or purchase of individual titles.
OTT (Over-the-top): Internet delivery of video; AVOD is one funding model used by OTT services.
