what is avod

What is AVOD? Meaning of Advertising Video On Demand

Just a year after YouTube’s launch, Google acquired the online site for $1.65 Billion. Netflix, motivated by growing subscription figures ( 60m to 110m in a period of three years) has expanded its content expenditure every year. Netflix is the biggest paid video streaming service on a global basis, with 195 Million subscribers and $17 billion yearly content expenditure. On the whole, predictions tell us that a complete revenue stream from video-on-demand fragment is expected to reach a scale of US$98.69 Billion in 2022. 

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

VOD or 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 2022. The pandemic has a positive effect in 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. 

Great.. You must be musing about..

Advertising Video On Demand (AVOD)

Why Choose AVOD?

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.. 

 
Thinking Of Starting Your Own Advertising Based Video on Demand Service?

AVOD – Benefits

Here are some reasons why AVOD is an ideal choice for advertisers, wanting them to approach their consumers directly.

what does AVOD mean

High-level User Acquisition Creates A Room – As it’s a free model it is hugely attractive for 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.

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.

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.

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.

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 CSAI and the other from 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.

Client Side Ad Insertion
How CSAI Works

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.

Server side Ad Insertion
How SSAI Works

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 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.

what is avod, svod, tvod

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.

All the more, the best AVOD platforms are likely to provide instant accessibility to the alluring content which makes it worthy to put up free!!

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, SVOD platform 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 – Subscription (SVOD) is 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 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.

Conclusion

Operators in a zone where Disney+, Netflix, Apple TV, and Amazon Prime 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!
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Movie streaming blogger and VOD Expert in CONTUS VPlayed. Interested in digging deep into VOD streaming platform media business tools and Love to discuss and share views on the latest technologies tips, and tricks.

20 Comments

  1. Sarah Reply

    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.

  2. Britto Reply

    Through this article, we could know the meaning & definition of advertising-based business model AVOD with regular servers is that video streaming.

  3. John Reply

    This article clearly explains who needs an advertising revenue model AVOD streaming server and how will it benefits them

  4. Kevin Bunnings Reply

    The article explains what is Avod, what does avod stands for & advertising video on demand, and all the technical terms. Thanks

  5. Jason Staurt Reply

    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.

  6. Sandy Reply

    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.

  7. Feranado Reply

    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.

  8. Manza Reply

    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.

  9. Levi Raj Reply

    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.

  10. Henry Reply

    Very good post on AVOD with ad-based revenue model. I definitely appreciate this blog with more information. Keep writing!

  11. Lucas Reply

    Hi, I see of all your articles, keep coming up with new topics.
    Thanks for sharing an interesting post on the advertising video on demand(AVOD) revenue model. I also find an extra site with super Links to your article also learn about what does avod mean.

  12. William Reply

    Very nice post on an advertising vod. I just stumbled upon your blog and wanted to say that I’ve truly enjoyed surfing around your blog posts. I will be subscribing to your feed and I hope you write again about what is AVOD very soon!

  13. Samuel Reply

    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.

  14. Richard Branson Reply

    Really great breakdown of Steps to create your own AVOD monetization model. Thanks for sharing. I like to know more about your services.

  15. Harrison Reply

    It was a very insightful article on AVOD definition and clearly explains what does AVOD stand for. Thank you

  16. Jack Reply

    Helpful information on AVOD meaning with monetization details. Stunned by the level of detailed definitions.

  17. Meryem Reply

    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.

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