An AVOD channel also gives Netflix access to the format’s rapidly growing ad spend. US AVOD ad spending reached $8 billion in 2021, and will nearly triple to $22 billion this year, according to MoffettNathanson Research. Still, adding an AVOD isn't as simple as pulling a lever.

Global spending on product placement was projected to be $23.3 billion in 2021, per PQ Media. That’s a 13.8% increase versus 2020, a significantly greater growth rate than marketing spending (5.9%) on the whole. Despite that, product placement is less favored as a brand touchpoint across generations, falling behind most others in a 2021 Data Axle study.

TikTok kills two birds with one stone: The platform needs to court advertisers and become the most creator-friendly social platform. Its new initiative could do both.

ByteDance properties Douyin and TikTok have been making waves inside and outside China for several years. Their combined spectacular growth will result in ad revenues of more than $30 billion for their parent company in 2022, leaving ByteDance in fifth place among ad publishers worldwide.