Wikipedia:

average bitrate

Average bitrate refers to the average amount of data transferred per second. This is commonly referred to for digital music or video. An MP3 file, for example, that has an average bit rate of 128 kbit/s transfers, on average, 128,000 bits every second. It can have higher bitrate and lower bitrate parts, and the average bitrate for a certain timeframe is obtained by dividing the number of bits used during the timeframe by the number of seconds in the timeframe. Bitrate is not reliable as a standalone measure of audio/video quality since more efficient compression methods need less bitrate to encode material at a similar quality.

Average bit rate can also refer to a form of variable bitrate encoding where the encoder will try to reach a target average bitrate or file size while allowing the bitrate to vary between different parts of the audio or video. As it is a form of variable bitrate, this allows more complex portions of the material to use more bits and less complex areas to use fewer bits. However, bitrate will not vary as much as variable bitrate encoding. Two-pass encoding is usually needed for accurate ABR encoding, as on the first pass the encoder has no way of knowing what parts of the audio or video need the most bitrate to be encoded.

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