With the growing popularity of online video content and streaming, in particular, OTT provides incredible opportunities for publishers and advertisers. This technology allows them to diversify revenue streams and distribute content to the broader audience, engaging more active viewers on numerous platforms. Distributors find the perfect way to carry free digital space into effect, while advertisers spread their ad messages among millions of viewers. Branded ads for publishers to monetize their ad inventory have become more accessible due to innovative, publisher-centric ad platforms.
The way viewers consume video content changes as well. Today, streaming video fans can be divided into two major groups – those who prefer SVOD and those who stick to AVOD. These are different models in the world of video on demand. As such, SVOD is a paid package, similar to ordinary TV. Users buy monthly subscriptions and watch their favorite channels online, including HBO, Netflix, Hulu, etc. Unlike SVOD, AVOD is a free service. Viewers get free access to desired content, but they should be ready to tolerate ads that ensure free access. Good old YouTube is a great example.
If you are looking for an opportunity to deliver your ads around the world, you should consider AVOD as a part of your marketing campaign. The same is for publishers – they get an opportunity to earn money without losing valuable space.
Source: Marketing Week
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Why Do Major Companies Choose AVOD?
AVOD is appealing for everyone – viewers, advertisers, and publishers. AT&T announces that HBO Max will launch an ad-supported tier in 2024. Quibi claims it will have an ad-supported tier (75% of users are expected to opt for it). And for years, YouTube proves that ad-driven businesses are extremely profitable. On the other hand, we see viewers who are happy to access their most-liked shows and movies free of charge. They are not fixed to the subscription plan. Here are the reasons why the AVOD model is the best solution:
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It works perfectly with the most popular types of content
Short videos, comedies, and how-to guides attract massive audiences, with youngsters being the most rapidly growing group (and they are not likely to pay for content every month). Good news – AVOD works perfectly with such a format. First, people won’t pay for the content that is available for free, so they are more likely to choose ad-based platforms. Second, they will stay watching the video when the ad appears, since they don’t want to miss the show.
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It is great for mobile devices
AVOD suits mobile devices perfectly. Available on multiple screens, AVOD lures viewers on the go. According to Statista, 139.8 million US users were watching video content on their mobile phones in 2018. This number has grown to more than 175.4 million in 2019. Viewers play small videos online using their mobile devices, and they don’t mind watching ads. People used to TV sets are used to the ad-breaks. What is more, free content that includes ads seems like something natural and fair.
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Low customer acquisition costs
The ads implemented in free content are sufficient enough to cover the charges for hosting and production. They are not expensive to create, implement, and distribute.
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Targeting opportunities
Advertisers can provide relevant and targeted ad messages to their viewers. The approach utilizes customer behavioral and demographic data to deliver ads they are interested in. This way, your ads appear on the screen of people who would be really interested in your goods and services.
Source: Medium
CTV Ad Monetization Options for Publishers to Consider
All the benefits of AVOD encourage marketers and publishers to discover new technology – special platforms that enable CTV ad monetization. In simple words, companies like TVP connect CTV publishers and advertisers directly. They help the latter ones to dive into a winning advertising environment.
Brands benefit from directly purchasing ad spaces from different publishers. Direct deals between publishers and advertisers ensure advantageous and resultative placement of ad content.
How Does an Ad Monetization Platform Work?
- Publishers choose an integration method (via VAST-tags or an SDK) and implement it with the help of a dedicated support team;
- By browsing through an extensive library of direct advertisers, publishers can choose partners to make a deal with;
- From the very launch of ad campaigns, video publishers can track each ad’s performance and thus adjust the settings accordingly.
Thanks to cooperation with such platforms, the publisher is more likely to sell the entire ad inventory, and increase its fill rate.
Source: mintegral.com
Benefits for Both – Advertisers and Publishers
- How publishers benefit from partnering with tech vendors like TheViewPoint?
Of course, publishers that cooperate with ad monetization platforms are in clover. They get an opportunity to sell ad inventory directly. This means that they don’t have to worry about selling their inventory – they don’t lose anything and get the most of their business. No more remnant space!
- How can advertisers benefit from CTV/OTT monetization platforms?
Advertisers have a chance to buy ad inventory from numerous publishers simultaneously. Even those companies that have a tight budget can get cheap unsold ad spots for their ads. What is more, such campaigns are easily measured in terms of efficiency – the adjustments and changes can be implemented whenever the advertiser desires.
Wrapping Up
AVOD is the kind in the world of streaming content It is beneficial for all sides of the “deal”: viewers get free access to tons of shows and movies, publishers monetize their CTV apps, advertisers get affordable and effective advertising opportunities. It seems like this model satisfies the needs of everyone engaged in content production, streaming, and consumption. Considering the amazing opportunities provided by AVOD, it is no wonder that major companies jump on the bandwagon.
