The growing gravitational pull toward streaming on OTT platforms has taken us beyond geographic limitations, broadcast schedules, physical barriers and traditional media stereotypes. There has been a fundamental change in the way any streaming video is produced, consumed and sold. AVOD is touted as a widely used advertising-based monetization model in the VOD industry. It has gained greater traction in the video streaming market due to improved demand for online advertising, and AVOD offers multiple advantages over any other monetization alternative.
AVOD is emerging in the professional content creation space as more and more businesses and organizations are ready to monetize their content through AVOD with built-in tools for best video hosting platforms on websites or best video streaming platforms.
Benefits of AVOD’s Realization Model
Enterprises can use AVOD to deliver free content with advertising to customers on a variety of inventory platforms, including connected TVs, desktops and mobile ecosystems.
The most significant advantage of AVOD is the ease with which new audiences can be found. With few or no barriers to entry, viewers can become engrossed in your material without any difficulty.
With audience interest data that is more accurate than age and geographic data, AVOD allows for highly granular targeting.
The low barrier to entry for subscribers leads to a rapidly expanding reach for those who don’t want to pay for video on demand.
Advertising is a much faster and easier method to implement than subscription services. This is a great time to build an OTT business.
Because of its openness, it attracts a large audience, making it easy for publishers to attract advertising and make money.
What’s behind the rapid growth of AVOD solutions?
- Targeted advertising
Thanks to improved ad insertion solutions, addressable ads can now be placed on OTT platforms. This has greatly supported the growth of the AVOD model. This advertising strategy is more targeted to different customer segments and is preferred by companies all over the world. On the other hand, addressable OTT digital ads reduce the number of ads and make them more relevant to the target audience based on their location and interests. 2.
- More variety of content
The collection of archival content on AVOD servers is well known. This expands the library available to consumers and advertises for their respective targets. Consumers can access a variety of content in one location. In addition, operators will be able to monetize the entire collection of archived content.
- Growth in investment in streaming advertising models
By 2023, global investment in VOD advertising is expected to reach $47 billion. This rapid expansion demonstrates how the AVOD model is increasingly dominating the industry. For emerging market players, more investment means better solutions and more revenue.
As a result, AVOD’s popularity has recently increased. To provide diversity and maximize profit opportunities, the OTT player offers a vast database of thousands of movies, TV series, documentaries and other archived content. It offers a win-win situation for content creators and advertisers, which is the reason for the growing popularity of the advertising model.
Advertising strategies and formats in AVOD include sponsored content, display banners, video ads and other in-stream advertising innovations such as pause and binge ads. Increasingly, streaming platforms and advertisers are making ads more popular with consumers. Entertaining ads in streaming content are beneficial to streaming platforms, viewers and advertisers alike, as they are often more likely to be viewed than content that feels disruptive. If you have a relevant OTT business you can contact us!