Over the last few years, the popularity of advertising video-on-demand (AVOD) services has been increasing rapidly. With the prediction of Deloitte Global that almost two-thirds of consumers in developed countries will use at least one AVOD service monthly by the end of 2023, the trend is likely to continue.
Moreover, by 2030, the majority of online video streaming subscriptions are expected to be partially or wholly ad-funded, catching up with emerging markets where ad-funded video-on-demand is the usual norm.
The rise of AVOD can be attributed to several factors, including steep inflation rates eating up income gains for many consumers. Many streaming video services in developed markets used to offer ad-free experiences as part of the benefit of a subscription, with the expectation that viewers would never return to ad-supported services.
This subsequent change has been quite impactful in its way!! You might be wondering how you can leverage all of it ??
Then, let me tell you..
It is observed that in this growing demand, there has been a steep increase in premium productions all over the world, which is in part because of ready-to-use available technology.
YES.. Really it is!
As people have become accustomed to being at home most of the time, the OTT revenue model or over-the-top platforms responded to the increasing at-home media usage. Also, popular revenue channels just like Ad-supported Video Streaming Revenue on Demand or AVOD are one among the important models that will work for operators and is an excellent way to monetize your VOD platform. And, of course it is said to be a master-striking monetization strategy amongst others.
Now let’s look into the..
Overview of VOD or On-Demand Content Platform
What is VOD? Video-on-demand is a type of content distribution platform that offers viewers the ability to opt for how, when, and where they see media. They just have to click on a link and begin watching a video.
Video-on-demand has some basic advantages like it lets viewers view the content at any time – consumers can play content whenever they like. Users can control what they watch and have extra opportunities to select what they see, in comparison to conventional TV scheduling. When all this is combined, top VOD platforms offers audiences the complete freedom to see content in a user-friendly, convenient and reachable way.
– a few of which you use every day. It has become more valuable than before in the current COVID-19 pandemic scenario.
AVOD Meaning – What it Really Is?
What is AVOD? Advertising-based video on demand or Ad-based revenue model is a kind of service where consumers have to view ads for free to watch the actual content that they decide to watch. When you’re looking to simply put it, the most popular form of AVOD or to name an example of AVOD talks about YouTube, DailyMotion, MX Player, etc. AVOD is mostly useful for people with a big fanbase or focused audience since ad views offer minimal amounts of investment & acquire massive volumes of actual revenue.
There has been growth in AVOD in 2021 and more is expected in 2023. The pandemic has a positive effect on the on-demand streaming industry. As a matter of fact, more broadcasters are acquiring vast scope to bring in something new to audiences.
Indeed, this trend has been rising throughout putting the growth drive into high gear despite COVID-19 pandemic implications in other industry streamlines.
AVOD Business Model
AVOD (advertising-based video on demand) business model is based on generating revenue via advertisements. This highly used model has three key players: content creators/publishers, advertisers, and audiences/viewers. Let’s take a closer look at each one:
We all will agree that content creators and publishers are the backbone of any AVOD business model. They are the ones who put all the effort into creating high-quality content that attracts end-users and advertisers. The more the content gets the views, the more revenue it generates for the publishers through ad revenue, thereby creating a mutually beneficial relationship.
Advertisers are another crucial player in the AVOD business model. They pay publishers to promote their goods or services to an audience that is truly interested in what they have to offer. In this case, advertisers completely rely on publishers to ensure that they reach the correct audience, which can then be converted into a paying customer.
The audience is critical to the AVOD business model as they spend their valuable time watching the content. When viewers view ads, advertisers pay for their attention. Here, viewers become a prominent point of attraction for both parties. As a result, creating a positive user experience for the audience is critical for retaining their loyalty and attracting new advertisers to the platform.
Various Ad Options for your AVOD Businesses
AVOD, or Advertising-based Video on Demand, is an innovative and fast-growing business model that allows users to access video content for free in exchange for watching ads. As this model benefits both advertisers and content providers, it has become an increasingly popular strategy in the online video streaming industry.
1. Video Ads
When it comes to AVOD, it becomes essential to provide various types of video ads to attract different types of advertisers and target audiences from various geographical locations. Indeed, offering different video ad formats can help businesses meet the needs and objectives of advertisers while providing a better experience for the audience.
2. Pre-Roll Ads
Pre-roll ads are an excellent option for businesses as they ensure that viewers will see the ad before accessing the content that they are very much eager to watch. Pre-roll ads are highly effective in capturing the end-users attention, especially when they are a bit relevant to the content that follows after the advertisement.
3. Mid-Roll Ads
Basically, Mid-roll ads are played during the online video stream, in the middle of the content. They are highly effective because they appear at a point where the end-user has already gone deep into the content, making it more likely that they will continue to watch and finish the advertisement. In short, due to content curiosity, the end-user will definitely watch the advertisement till the end.
4. Post-Roll Ad
When it comes to post-roll ads, the ad is played at the end of the video stream, and is a good option for advertisers looking to maximize engagement and ensure that viewers watch the entire ad. Post-roll ads are displayed after the content ends, making it more likely that the end-user will watch the entire ad before moving on to the next piece of content.
In conclusion, we can say that by providing a variety of video ad formats, AVOD businesses can attract advertisers and provide a better user experience for the audience. By understanding the different types of video ads available and their respective benefits, businesses can choose the right video ad formats that meet their needs and objectives.
Great.. You must be musing about..
Why Choose Advertising Video On Demand (AVOD) For Your Streaming Business?
AVOD is completely free, which makes it extremely accessible to any kind of audience. Advertisers all around the world want to implement this monetization model since it helps them to get their brands in front of a large number of people and build brand recognition. As a result, AVOD proves to be naturally the best alternative for advertisers trying to reach customers directly.
Now, customers are looking for sports broadcasts, television shows, and other forms of content. The AVOD sector, in particular, has seen fast expansion and spreading out across numerous markets worldwide. The markets across Europe and Latin America appear to be the most interested in AVOD.
Let us discover what makes AVOD or Ad-based model a #1 recommended option for video monetization platform.
What Are The Benefits Of Using Advertising VOD Platform?
Here are some reasons why AVOD is an ideal choice for advertisers, wanting them to approach their consumers directly.
1. High-level User Acquisition Creates A Room:
As it’s a free model it is hugely attractive to a wide range of audiences. Though a lot of people are willing to pay subscription fees for high-value content, a lot more will be available to consume it if they can see it for free.
2. Optimum Revenue Source Is A Plus:
AVOD has outstanding potential for platform owners & advertisers as both can gain maximum traction of digital ads, leading to profit perks since they are on demand currently.
3. Forecasts Indicate Huge Scope for Broadcasters:
Subsequently, insights from Global video ad expenditure let us know that it is expected to rise revenue & reach nearly $36 Million by 2025.
4. Customization of Ads Gears Microtargeting:
With personalized advertising, advertisers are better placed with their target audience. This aids them in making more sales and enhances the user experience.
5. Variety of Ad Video Formats:
Advertising formats in AVOD comprise display banners, sponsored content, and other streaming ad creations like binge and pause ads. That’s because streaming platforms and ad collaborators are increasingly making ads more appealing to consumers.
Having said that, it’s an ideal time to take advantage of this advancing trend and of this advertising-based business model.
How AVOD Works In Insertions – CSAI & SSAI?
Basically, Ad-based revenue models can be leveraged in video streaming business with two major ways. One with the other from CSAI vs SSAI. While talking about the CSAI or client-side ad insertion solution, it works through an application which sends API requests to the ad server, for it to serve or deliver ad streams.
Then, when we look into SSAI or server-side ad insertion, we come to know that it stitches or inserts the ad media directly to the main video stream, thus eliminating the need for a server request to receive adverts.
Let’s explore both of its intricate functionality..
Client-Side Ad Insertion
CSAI is the process of sending ads to clients via mobile, gaming consoles, desktop, etc; in which the client-side player requests the ad-server for the advert during the time it reaches the particular ad-markers in the stream or manifest file.
When the server receives a request at the client’s-side player, it makes use of the data to know which is the suitable ad to cater to that particular client’s player. Then, it responds with the information of the ad. After that, the player automatically pauses for a bit in the middle of the video. Followingly, the ad gets played and then the video resumes.
Server-side Ad Insertion
SSAI – also referred to as DAI or Dynamic Ad insertion is an insertion technique whereby media (video and audio) are put on directly into the video that is currently being streamed – at the server in cloud but not at client’s server on-premises.
Moreover, in SSAI, the CSAI is quite different from SSAI to facilitate ad insertion. Since it’s a popularly chosen top video monetization platforms amongst top brands, currently SSAI is preferred than the other one.
AVOD – How Is It Different From Other Revenue Models?
AVOD can be a perfect option for content creators and platform owners to monetize their content, since it can be sailed through while investing to have lump sum returns. In order to profit immensely, an AVOD model does not require to create or sell a product outright.
Instead, space in your video is simply offered up to companies for running an advertisement. This gives you an extremely simple and hands-off method of monetizing content in a jiffy.
Now you must be thinking if given a chance, which would be the best option to monetize? Is it SVOD, TVOD & PVOD??
If you ask me, you can explore two ways of monetizing your top AVOD platform. One is, you could combine PPV(TVOD) & PVOD, and SVOD platforms to facilitate your viewers with a general subscription service & charge extra for premium gated content. Or, you can also try having a combination of instream-ads injected into subscription videos for viewers choosing monthly subscription. Besides that, if you want to also utilize all three, that’s also a way!! Ultimately, it’s up to you to decide to leverage pay-per-view in livestreams, throw skippable ads for good measure!!
Ofcourse, there’s a question coming up in your mind!
Why is VOD supposedly held as suitable revenue monetization compared with the rest??
Then, let me tell you how it evolved.. VOD began with movies. Users turned to streaming platforms such as Netflix and VOD services that were linked to cable subscription accounts instantly. As people have become accustomed to being at home most of the time, the OTT revenue model or over-the-top platforms responded to the increasing at-home media usage.
To add to this growing demand, there has been a steep increase in premium productions from all over the world, which is in part because of ready-to-use available technology.
Get to know the other types of monetization models that you can explore:
SVOD – What is subscription video on demand, the money-generating model and the most common type of VOD services provided by media companies presently. It’s a type of service that gives users access to a whole video library for a small repeated fee.
TVOD – Pay-Per-View or TVOD is a transactional video on demand service that lets you purchase content on the basis of, as the name suggests, viewing each content as your consumers pay.
PVOD – No wonder why 55% of Americans use Netflix or alike where a billion hours of streaming is done per week. Premium video on demand, lets you simultaneously strategize broadcasts just before the theatrical window comes up.
Instances When a Streaming Business Can Monetize with AVOD
AVOD usually connects with paid or free aired content to generate surplus revenue that boosts your business as compared to others. For example, PPC or getting paid per click is a great way to get in money from your blog. Google will go look for advertisers or deal directly with companies searching to spend money on advertising.
AVOD is a great option as an advertising-based revenue model for all else except new content, famous blockbuster movies, and popular content of which a famous celebrity is a part.
AVOD business model is extremely well-suited for content providers or operators who have a broad variety of content like TV content, catch-up content and influencer content like vlogs from celebrities which appeal to the youth of today.
AVOD is super good for content aggregators who have a great deal of content pouring in from varied sources, and super great for broadcasters who have new and saved content.
AVOD is well-suited for free-to-air channels on TV that can offer an optimal revenue stream. Some kinds of content are more suitable for AVOD like lengthy content and old movies as there is adequate time to show ads as a part of the whole package to make fair the cost.
Operators in a zone where Disney+, Netflix, Apple TV, and Amazon TV app are seizing market share, AVOD may be what you are finding to offer an extra revenue stream. AVOD is a service that generates free traffic and the excellent advantage to providers is its ability to gather user information which can be used to improve an SVOD offering.
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!
Frequently Asked Questions (FAQ):
Advertising Video On Demand (AVOD) is a sort of service in which users have to watch advertisements in order to view the content they want to watch for free. Like many other advertising models, the primary goal of AVOD advertising is to generate revenue from streaming content.
AVOD is just one of the several viable ways to monetize on-demand videos. The primary goal is to provide free viewership. AVOD monetization is a low-risky method of earning handsome revenue. Here, publishers can attract more and more diverse advertisers. Overall, AVOD streaming benefits all parties in a great way.
Consider the following factors for choosing the right platform provider – Your intended audience, the level of privacy & security you may require now or in the future, the type of content you wish to deliver, etc. You should also consider other video on demand advertising models before coming to a conclusion.
In general, the AVOD monetization model is highly sought-after by advertisers as it allows them to put their brands in front of a large number of users and build brand recognition. That is why AVOD advertising becomes an ideal choice for advertisers in every single situation. As a content creator, AVOD is a terrific strategy if your videos get a lot of views.
The AVOD monetization strategy is used by some of the most well-known video streaming providers out there. When it comes to prominent and well known examples, the names include – YouTube, Instagram, Dailymotion, MX player, Roku, Pluto TV.
Hi VPlayed, We are building an AVOD focused on contemporary men’s style content with live shopping capabilities for fashion retailers.
Hello, I have 30 episodes and 900 minutes of content with 50gb file size and would like to know if you offer web application and tv app templates. I would like to know the requirement for avod business model to my platforms and do you offer in-house ad approval or just third party.
Hi, we are a digital agency based in Dubai. We would like to know how we can utilize your platform to run our AVOD OTT campaigns. Would like to get a demo of your platform.
Hi Team, Interested in test driving any of your AVOD monetization that has integrated live FAST channels and AVOD titles. Also interested to learn if you have integrated with AMAGI, WURL, etc.
Hi, I would like to know prices & meaning of the AVOD in particular. Furthermore I would like to know if you have solutions for a 1-to-many VOD streaming and its cost. Thank you Best regards,
Hi, Were into field of advertising and are now planning to enter into AVOD platform. Need more information about white label solution for the App and for TV and cost. Awaiting for your reply. Thanks
Hello, I am currently exploring options for YES TV (yestv.com) to venture into having it’s own OTT platform. I do have some initial conversations scheduled with some of your competitors and was hoping to see how VPlayed could be potentially a better fit. We would be looking (quite likely) at launching free service initially but growing towards an AVOD model eventually. The potential of a linear stream at some point would also be on the table. App support for users would be a big one for us. Looking forward to chatting,
Hi, So how much is the price? Is it subscription or one time payment? Lastly I am interested on having a Wix video channel website & looking to monetize them with video ads or in this case AVOD’s.
Hello, We are looking for a platform to move our AVOD streaming over to. The current company we are with isn’t capable of supporting our needs. Need to be set up on Apple TV, Roku, iOS, Android, and Amazon Fire to start.
Hi, We are building a website on WIX, we just wonder if we can use OTT platforms on the site for AVOD, and etc.
Hi, we are a startup company and we are in the process of launching an AVOD platform with AVOD. Kindly share your subscription packages
Hello, We’re looking into building an AVOD / SVOD service for our international customers and would like to learn about international availability, pricing model, scalability etc.
Hi, I would like to know more about your pricing for a cross platform video on demand platform that supports Video advertising platform, SVOD, and TVOD. Thanks,
Looking for OTT delivery platform that will provide TV and Mobile Apps, Marketing capabilities, global CDN network to market video and podcasts SVOD, AVOD with Best AVOD and TVOD. What are VPlayed fees?
Hello, We own & operate streaming channels with AVOD service. We’re looking to control our ad serving & monetization. If relevant to your services please get in touch. Thanks!
Hi there, Runtime is an OTT publishing company with a large library of premium long form content. I’m currently looking for a solution to build out a full suite of AVOD OTT apps. Thanks,
Hi, We are looking at the OTT solution for supporting 2 AVOD streaming channels and 12 SVOD channels in July 2021 with approx 1-4 TVOD every month ramping from July 2022. We currently have a high bandwidth CDN with the DCP for MPEG-DASH – we are looking for Channel Scheduling/content management, transcode & Player (mobile, web and TV) and CRM/Paygate integration for management of the Subscription level access
Hello, I would like to stream my video content over Roku, Apple, Firestick etc and be able to monetize my content through video advertising. I would like rate information.
Greetings, this is our business requirements: We are a newspaper company in Puerto Rico and we want to make a video on-demand service like Netflix with about 40 movies to our viewers, which will be initially about 2000 users and expanding. We are planning in the beginning to use AVOD and interstitial ads, and also banner ads to offer to our subscribers while we can get more users and then charge a monthly fee… Can you provide us with a solution to do this and what would be the approximate price for it?
Hi, I have a Roku Channel and I would like to receive info on how I can make money via AVOD Monetization and Video On Demand for my channel.
Hi, We’re looking to roll out a fairly standard AVOD product for movies, TV shows and their associated clips across the various OTT platforms (Fire TV, tvOS, Tizen, webOS, etc.)
Hi, Complete OTT platform solution with Web, Android, iOS apps having monetizing facilities, SVOD, AVOD and occasional live streaming.
Hi there, I’d like to learn VPlayed’s pricing for OTT that includes TVOD and avod platforms. Thank you so much for your help with this! Best,
We are interested to work on a platform for skilled people who wants to show their talent and want to make money. ott AVOD and Tvod with an artistic interface. But we also want to add a 3d design for online art and photo exhibition. You guys will be hired for continous development of the platform.
Requesting the ballpark pricing for an AVOD streaming service for films and shows. Something comparable to Tubi.
I’m interested in knowing more about your end-to-end video platform for a new AVOD service in Portugal
Hi there! We’re currently with Brightcove, and I’m exploring other OTT platforms. We’re in production now, but have been unable to put avod streaming plan in place due to BC issues. Would love to talk to someone ASAP for demo/discovery. Thanks!! -Stacy
We are a content creator and looking white label solution for OTT including AVOD monetization integration.
Hi, I am a part of an Indie Filmmaker group called My Indie Productions. We are looking to start in indie film channel. We have tried a VOD but people are just not willing to fork out money (even small amounts) for indie films. I am inquiring about an avod advertising video on demand setup through your company if it’s available.
We are looking for a AVOD services that would enable us start our Nigerian video content across various devices.
Hello, I am Inquiring about the price range for an AVOD streaming service for movies and shows. Tubi-like service.
Hi In addition to showing their talent and making money, we are interested in working on a platform where skilled people can show off their skills. The interface of the Avod and Tvod is artistic. In addition, we would like to incorporate a 3D design for online exhibits of art and photos. You guys will be hired for continous development of the platform.
Hi, I am looking for more information about your end-to-end video platform for a new AVOD service in Portugal
I am unable to make phone calls at this time. It would be helpful if you could provide me with pricing information. Can you tell me about the license cost? What’s that all about? How does your AVOD work?
Hi, Looking for AVOD integration and white label solutions for OTT are important for us as content creators.
Hello, we plan to launch an AVOD streaming channel in Ireland at the end of December. Emerging talent can showcase their work through the streaming channel. Content in Ireland needs to be more diverse and inclusive. Our new content channel will be hosted on a platform that has IO based and programmatic advertising capabilities. Our channel will be free to view.
A quick chat and demo of your product would be helpful for us as we look for a avod monetization for our platform. Would it be possible for us to chat with you and see the demo this week? For their participation, I am including my Ops team in this thread.
Hello, Currently, we are looking to start an independent film channel. Despite our best efforts, people aren’t willing to pay for indie films (even small amounts). If your company offers an ad based revenue model, I would like to inquire about how it can be set up. Thanks for your time and I look forward to hearing from you.
Hi, Our company is looking for a top advertising video on demand platform that can provide us with Nigerian video content across different platforms.
Hi, I stumbled across your website while looking for AVOD platforms. In light of our new status in the OTT space and our inability to make a large investment just yet, I am interested in exploring capabilities and pricing. Best Regards
Hi, I want to know how much a VOD/AVOD solution + OTT (all mobile devices and TV apps) of 1.000.000 minutes (10 TB) of video delivery per month. Thank you.
Hi, I have an Ott channel on Roku, Amazon fire and Apple TV through Moore studios and I have not been happy with their customer service. I’m looking to move all my content to a new provider that can help monetize my channel like a ad based revenue model . Thank you in advance and look forward to hearing from you soon.
I would like to set up a platform for AVOD (Advertising Videos On Demand). What are the pricing & customization features available?
Hi VPlayed, We are looking for the perfect partner to expand from Roku to Everything. Type: hybrid with AVOD platform, SVOD, PPV and Live. Platforms: OTT- Roku, Appletv, FireTv HTML5 – web, android and apple Fast- how many can we afford/scale too? Important to us: Google AdSense integration Live on all devices Social sharing Multiple subscription offers CTV advertising Affiliates Then its up to you to impress us. 🙂
Hello–we are looking for a DTC platform for our SVOD service (and potentially TVOD, FAST and AVOD services) that is rich in viewer features, offers significant control on the management end of the platform, and provides lots of detailed and helpful analytics. Additionally, we have specific requirements on the payment end regarding credit card storage, sales tax and billing support. Let me know if you are interested in talking with us.
I am planning to release my feature films through an advertising based business model . I read that you have got monetisation solutions through Ads. I would like to know more please.
Hello, We are building an AVOD focused on contemporary men’s style content with live shopping capabilities for fashion retailers. What does avod stand for and how much does it cost to build a platform?
Hi there, I own a subscription-based videos-on-demand service called STORM TV. I am interested to know what is avod and like to include AVOD. I am interested in speaking to someone about pricing, plus a few other questions that I have. The videos on Storm TV are in the genre of entertainment and reality tv. Thank you for your time.
Hi, we are a digital agency based in Dubai. We would like to know how we can utilize your platform to run our avod monetization. Would like to get a demo of your platform. Thanks,
Hi, Just checking out your website. Anyway I’m using Strimm.com for a Linear TV presence and Vimeo as a CDN. I have roughly 1.17 TB of content (TV series, Movies, Cartoons) . I’m paying the two $170 monthly. $129 to Stream $35 to Vimeo. I need video monetization through which I’m not getting from those two. And I would consider changing from Linear to SVOD or AVOD if that would be best. Can you do for Satellite? What would be the cost? (approximately)
Thanks for sharing about the high-quality advertising video. Professionally produced content delivered to highly engaged audiences through AVOD curated user experiences in a brand-safe context. Well explained.
Through this article, we could know the meaning & definition of advertising-based business model AVOD with regular servers is that video streaming.
This article clearly explains who needs an advertising revenue model AVOD streaming server and how will it benefits them
The article explains what is Avod, what does avod stands for & advertising video on demand, and all the technical terms. Thanks
Advertising VOD video is the perfect streaming solution if your organization is concerned with security, privacy, and easy integration with existing networks. Looking to discuss it.
Nicely explained about what is Avod and also I want to have an ad-based video streaming platform with the server, tell me the cost.
Lots of features of ad based video revenue model this gives the clear clarity of its uses.
I want to build an advertising video on demand for video streaming business for both the website and the app kindly tell me the packages.
I’m from the entertainment business, I want to monetize my video business using the AVOD revenue model on my website. Kindly tell me the pricing.
Greetings! Very useful advice on what is AVOD and AVOD stand for definition within this post! It’s the little changes that produce the greatest changes. Thanks a lot.
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Hello there! I could new been to this site, but after looking at some of the articles I realized it’s new to me.
I’m definitely happy I stumbled upon it, and I’ll be checking back frequently more about the monetization model and what is AVOD.
Really great breakdown of Steps to create your own AVOD monetization model. Thanks for sharing. I like to know more about your services.
Very detailed analysis of what does avod mean. Awesome AVOD blog! Thanks for sharing with us.
It was a very insightful article on AVOD definition and clearly explains what does AVOD stand for. Thank you
Helpful information on AVOD meaning with monetization details. Stunned by the level of detailed definitions.
Really great breakdown of all the differences in AVOD monetization model & what it is. Thanks!
Thanks for taking the time to put this all together how businesses make money by selling ads on their videos on the advertising video on demand(AVOD). It’s much appreciated.