The United States has overtaken China to become the biggest spender on AVOD services, with global spending set to double to more than $53 billion by 2025, according to the latest findings from Digital TV Research.
In detail, the researcher reported that China’s spending had dropped by 8.9% in 2019 as a result of its economic downturn. That allowed the United States to claim the top spot with a spend of almost $8 billion, which is predicted to soar to more than $24 billion in five years time. A combination of Covid-19 and a continued economic downturn is also predicted to cause China’s AVOD spending to fall by a further 11.4% in 2020, although 2021 will improve.
While the United States and China were well ahead of other countries in their AVOD spend, with a combined expenditure of more than $14 billion in 2019, the United Kingdom, Japan and India are expected to grow strongly over the next five years too.
“We expect high AVOD growth to return globally from 2021. The United States will triple its AVOD expenditure by 2025 to reach $24 billion. This is 45% of the global total – up from a 33% share in 2019. This is faster growth than most other countries,” said Simon Murray, Principal Analyst at Digital TV Research.
“Global AVOD growth will dip during 2020, but it is not expected to fall. The coronavirus and subsequent lockdowns hit the whole advertising sector as confidence and expenditure plummeted. However, online advertising is the least affected medium as it is one of the youngest and fastest growing. Online viewing has increased substantially during the lockdown to boost AVOD,” he added.
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