What Is AVOD? Meaning Of Advertising Video On Demand

In today’s world, where people are spending more time at home and have become accustomed to on-demand media consumption, the revenue models of over-the-top (OTT) platforms have evolved to meet the increasing demand. One of the most significant revenue channels in this space is Ad-supported Video Streaming Revenue on Demand (AVOD), which has emerged as a powerful monetization strategy for VOD platforms. In this article, we will explore the concept of AVOD and its role in the streaming industry.

Understanding VOD Platforms

Before delving into AVOD, let’s first understand the concept of Video-on-Demand (VOD) platforms. VOD refers to a content distribution platform that allows viewers to choose when, where, and how they consume media. With a simple click, viewers can start watching a video of their choice. VOD platforms offer several advantages, such as the freedom to watch content at any time, control over what to watch, and a user-friendly and convenient viewing experience.

AVOD Meaning and Definition

AVOD, or Advertising-based Video on Demand, is a type of service where viewers watch advertisements in exchange for free access to the desired content. It is the most popular form of monetization in platforms like YouTube, DailyMotion, and MX Player. AVOD is particularly beneficial for content creators with a large fan base or a focused audience, as it allows them to generate substantial revenue through ad views with minimal investment. We provide VOD platforms in India 

The Growth of AVOD

The AVOD model has experienced significant growth in recent years, and this trend is expected to continue in the future. The COVID-19 pandemic has further accelerated the growth of the on-demand streaming industry, providing more opportunities for broadcasters and content creators to engage with audiences. Despite the challenges posed by the pandemic, AVOD has thrived and emerged as a resilient monetization strategy.

The AVOD Business Model

The AVOD business model involves three key players: content providers, advertisers, and viewers. Content providers are the backbone of the AVOD ecosystem, as they create high-quality content that attracts viewers and advertisers. Advertisers pay publishers to promote their products or services to a targeted audience. Viewers play a vital role by watching ads, which generates revenue for content providers and advertisers alike. This interplay between content providers, advertisers, and viewers forms the foundation of the AVOD business model. We provide VOD streaming platform in India

Ad Options for AVOD Businesses

To effectively implement AVOD, businesses need to offer various ad options to cater to different advertisers and target audiences. Some popular ad formats include video ads, pre-roll ads, mid-roll ads, and post-roll ads. Video ads can be customised to suit specific advertisers and provide a better user experience for the audience. By providing a variety of ad formats, AVOD businesses can attract advertisers and create a more engaging viewing experience for their audience. we provide video on demand solution in India

Benefits of AVOD

AVOD offers several benefits for advertisers, making it an ideal choice for reaching consumers directly. The free model attracts a wide range of audiences, ensuring high user acquisition. It provides a significant revenue source for platform owners and advertisers, leading to profitability. AVOD has seen rapid expansion across various markets worldwide, with Europe and Latin America showing particular interest. Customised ads enable microtargeting, allowing advertisers to reach their desired audience effectively. The availability of different ad formats enhances the appeal and effectiveness of AVOD. we provide VOD Solution in India

Incorporating AVOD into Your Streaming Business

To launch an AVOD service, it is crucial to choose a robust streaming platform that provides a powerful content management system (CMS) for easy access and collaboration. An advanced analytical tool is also essential to track video performance and improve marketing strategies. Monetization models that ensure 100% revenue generation should be considered. By understanding the benefits of AVOD and the available ad options, businesses can leverage this monetization model to drive revenue and provide a better user experience for their audience.


When implementing AVOD, businesses can choose between two major insertion techniques: client-side ad insertion (CSAI) and server-side ad insertion (SSAI). CSAI involves the client-side player requesting ads from the ad server when it reaches specific ad markers in the stream or manifest file. On the other hand, SSAI involves inserting ads directly into the video stream at the server level, eliminating the need for server requests to deliver ads.

CSAI allows for more personalised ad targeting, as the ad is requested based on the client’s player data. The player pauses briefly to play the ad before resuming the video. SSAI, on the other hand, seamlessly stitches the ad media into the main video stream, providing a smoother viewing experience. Both techniques have their advantages and can be implemented based on the specific requirements of the streaming platform. Since it’s a popularly chosen top video monetization platforms amongst top brands, currently SSAI is preferred than the other one.

In conclusion

AVOD has become a prominent monetization strategy in the streaming industry, offering a free model that attracts a wide audience and provides revenue opportunities for platform owners and advertisers. By offering a variety of ad formats and leveraging advanced insertion techniques, businesses can maximise the benefits of AVOD and create a successful streaming platform.

If You Already Have An Idea About Launching A Video Monetization Platform, Schedule A Free Demo And We’ll Get You On The Road To VOD Streaming Success!

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