How AVOD Model Is Driving The OTT Game?

The influence of OTT platform streaming has liberated us from geographical constraints, rigid broadcast schedules, physical barriers, and conventional media stereotypes. This shift has brought about a fundamental change in the production, consumption, and distribution of streaming video content.

“The surging demand for video streaming marks the digital transformational leap for any brand.”

Beneath the technology, a diverse range of business models has emerged, granting unprecedented access to content. Advertisers are now focusing their spending on digital transformation as the popularity of  VOD platforms continues to rise, prompting them to seek alternative advertising avenues.

The dominant business models employed in the realm of OTT services are Advertisement-based Video-On-Demand (AVOD), Subscription Video On Demand (SVOD), and Transactional-based Video On Demand (TVOD).

“By 2023, AVOD is projected to surpass SVOD in global revenues, exceeding 100 billion.” We provide VOD platforms in India

What is AVOD? The advertising-based video on demand, or ad-based model, is experiencing steady growth in popularity as marketers leverage the opportunities presented by ad-supported video streaming solutions. The advancement of advertising technology is driving the growth of AVOD.

“AVOD precisely quantifies data for advertisers, providing greater accountability and improved return on investment (ROI).”

AVOD is widely hailed as the most utilized monetization model in the VOD industry. It has gained substantial traction in the video streaming market due to the increased demand for online advertising, offering numerous advantages over alternative monetization methods.

AVOD has ventured into the realm of professional content creation, as more businesses and organizations choose to monetize their content using AVOD and benefit from built-in tools available on top video hosting and streaming platforms.

“AVOD is simply irresistible.”

Advertising VOD The number of AVOD-infused platforms has grown exponentially across the globe, with India leading the way with over half a billion free AVOD users, followed by the United States with nearly 200 million users. We provide Online video platform in India

AVOD brings viewers, content creators, and advertisers together, fostering the popularity of monetization in video streaming services.

“OTT advertisers fully leverage personalized advertising to reach their target audiences.”

OTT enables advertisers to display ad content across a wide range of devices, including streaming devices, mobile devices, smart TVs, gaming consoles, and connected TVs. Advertisers and content producers can deliver relevant OTT ads to achieve their goals and objectives.

Monetizing With AVOD

Monetizing content requires a nuanced approach, as not all uploaded content needs to be monetized. AVOD should be used to monetize content that adds value to the audience in various ways. Instead of serving ads on promotional videos for your business, consider utilizing industry-specific crash courses or tutorials that are more worthy of ad placement.

In any scenario, user experience plays a vital role in the success of your streaming platform, so it is crucial to prioritize viewer engagement.

“Advertisers worldwide use AVOD to build brand awareness and showcase their brands to a massive number of viewers.”

AVOD offers advertisers accessibility to viewers across different platforms, making it the obvious choice for advertisers to directly engage with their target consumers. Market numbers support the growth of the AVOD market, with ad revenue rising by approximately 20% due to the current digital demand.

Perks of Using the AVOD Monetization Model

OTT has become a prime avenue for revenue generation, and AVOD fuels this revenue growth by offering notable advantages over alternative business models for advertisers and publishers. Advertisement-based VOD serves as a potent revenue source for publishers and presents brilliant opportunities for advertisers.

Increased ROI Potential for Advertisers and Publishers – As advertisers invest more, AVOD presents incredible potential for revenue growth. Statistics indicate that video ad spend will reach 36 million by 2026, making it the right time to capitalize on this trend.

Wide Range of AdvertisingModels – Advertisers and publishers enjoy immense flexibility in terms of advertising possibilities. Ad serving becomes easier with the availability of diverse ad networks, and there is a wide variety of video ad formats to choose from.

Scope for Personalized Ad Delivery – Personalization is key for marketers, and the use of personalised advertising allows advertisers to target their audience with precision. This not only boosts sales but also enhances the user experience.

Rise of Ad-Supported OTT Services – The growth rate of ad-supported streaming services has doubled in recent times, with the pandemic further fueling this trend. OTT platform streaming has seen a significant increase of 115% in 2021. Creating a video streaming website to generate revenue through ad-supported businesses is currently in demand.

Consumers Promote Ad-Supported Streaming – Consumers are increasingly turning to streaming content, particularly video on demand. Over 63% of consumers opt for free or less expensive ad-supported services over costlier alternatives. Such ads do not hinder the viewing experience and seamlessly integrate with the content.

Video Ads Have Higher Completion Rates – Unlike traditional TV advertising, viewers cannot skip ads through the use of ad blockers or channel changes in OTT streaming. This increases the chances of the ad being seen in its entirety.

Monetize Your Streaming Platform with Video Ads

VOD streaming platforms enable advertisers to capture and create impressions among viewers in a comprehensive manner. Investing in OTT ads, coupled with technological advancements, can elevate any brand and lead to promising business profits.

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