CTV & video · also called Advertising-based video on demand
AVOD
AVOD (advertising-based video on demand) is streaming video that viewers watch on demand for free or at reduced cost, funded by showing ads before or during the content.
With AVOD, you pick what to watch, when you want, and pay with your attention instead of a subscription fee. YouTube, Tubi and many broadcaster catch-up services are AVOD. The line has blurred as subscription services add cheaper ad-supported tiers, sometimes called hybrid or "ad tier" models; Netflix and Disney+ launched ad tiers in late 2022, and Amazon Prime Video began showing ads by default in several markets in 2024.
AVOD ads are typically Pre-roll and Mid-roll video, delivered via VAST and often SSAI, and bought directly, through programmatic guaranteed and private marketplace deals, or in open auctions. Ad load, the number of minutes of ads per hour, is a key lever for revenue and viewer experience.
AVOD differs from FAST, which is scheduled linear-style viewing, and from pure SVOD, which has no ads. For buyers, AVOD on CTV offers premium content but requires verification, since the same apps are targets for app spoofing.
Think of it like this
AVOD is like a free film screening where the sponsors get to show adverts before the film and during the interval.
An example
A viewer in Mexico watches a free film on an AVOD app on her smart TV; she sees a 30-second pre-roll and two 90-second mid-roll breaks, each sold to a different advertiser.
Related terms
SVOD
SVOD (subscription video on demand) is streaming video paid for by a recurring subscription, traditionally without ads, such as the ad-free tiers of Netflix or Disney+.
FAST (free ad-supported streaming TV)
FAST (free ad-supported streaming TV) channels are free, linear-style streaming channels with scheduled programming and ad breaks, delivered over the internet to smart TVs and apps.
CTV (connected TV)
CTV (connected TV) is any television connected to the internet, such as a smart TV, streaming stick, games console or set-top box, and the advertising shown in streaming apps on it.
Pre-roll
Pre-roll is a video ad that plays before the content the viewer chose to watch begins.
Mid-roll
Mid-roll is a video ad or ad break that plays partway through content, interrupting it, like a traditional TV commercial break.
Sources: IAB Tech Lab CTV standards, IAB Tech Lab VAST