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What is AVOD? Understanding Advertising Video on Demand

4 min read
AVOD

Advertising Video on Demand (AVOD) is a type of VOD streaming technology like SVOD and TVOD used to monetize online video content. AVOD is predominately used by free, ad-supported streaming services like Hulu and YouTube. Platforms that operate on an AVOD model are called AVOD platforms.

Although the principle behind advertising Video on Demand has been around since the birth of online video, it is not widely used by online video publishers. Many publishers prefer subscription video-on-demand models (SVOD) for monetizing their video content. But, the development of mobile devices has given rise to AVOD as one of the most efficient ways to make money off of mobile audiences.

Most AVOD- advertising-based video on demand platforms utilize pre-roll ads, which are advertisements at the beginning, in-between a video, or at the end of the video. AVOD is an effective monetization method because it allows viewers to watch a significant amount of content without paying a subscription fee or purchasing any items within the platform’s ecosystem. Simultaneously, publishers are still able to generate revenue from streaming content. That’s why it’s an excellent way to monetize video content.

In this blog post, we’ll cover the following topics:

  • What is VOD and what does AVOD mean?
  • Top List of AVOD Platforms
  • AVOD Business Models
  • AVOD Market Size & Its Growth
  • Benefits of AVOD streaming services

So, let’s get started!

What is AVOD?

AVOD acronym is a popular category in VOD streaming technologies. When individuals listen to the term, a common question is what AVOD stands for.

The term AVOD stands for Advertising Video on Demand. This method is a VOD streaming technology used to monetize online video content.

AVOD platforms are advertising-based video platforms that allow users to watch content without a subscription, usually intermixed with commercial advertisements. Many streaming providers use the AVOD method to generate revenue. Companies like Hulu, YouTube, and MetaCafe use the AVOD technology.

AVOD Business Models

AVOD business models are advertising-based that generate revenues with ads. In this model, viewers can usually watch content for free, and advertisers pay to air their commercials or promotions on a specific show or channel. These three groups typically form one AVOD Business Model:

Content Creators/ Publishers:

Content creators create quality contents that attract the audience to view and advertisers to pay for ads. When the content attracts a lot of viewers, they become a source of revenue for the publishers by generating ad revenue. At the same time, advertisers become more interested in paying the publishers for ads.

Advertisers:

In the AVOD business model, Advertisers pay the publishers to promote their products or services to receive more attention from the content viewers. Advertisers depend on content publishers to make sure they reach the relevant viewers. Also, advertisers pay for certain time slots or channels to reach their targeted viewers and measure their campaign’s return on investment (ROI).

Audience/ Viewers:

The audiences are the main customers in the AVOD business model because they come to watch content, and advertisers pay for their attention when they watch ads. Viewers are the medium between publishers and advertisers.

List of Top AVOD Platforms

Advertising video-on-demand (AVOD) streaming platforms have become popular in recent years. With the success of AVOD companies like Hulu and YouTube, many people are turning to online media for entertainment.

Some of the popular AVOD platforms services are listed below.

  • YouTube
  • Hulu
  • Pluto TV
  • Xumo
  • Ruko Channel
  • Crackle
  • Tubi
  • Movies Anywhere
  • Dailymotion
  • Vudu

AVOD Market Size and Its Growth

AVOD market size is a massive market that advertisers and content creators or publishers aim to tap into. The market is expected to grow as the more advanced technology allows further advancements in this business model. Below are the reasons why the AVOD market size is getting bigger.

  • Advancement in streaming technology
  • Increase the number of smartphone users
  • Increase in online content creation.

AVOD’s business model is expected to grow even more because it has a huge market and can grow exponentially. The AVOD industry is expected to grow by 144% over the next decade, reaching $66 billion in revenue across 138 countries.

Streaming technology will be more advanced, making streaming faster and videos clearer for viewers. This means they will watch longer and more videos. The number of smartphone users will increase because more people can afford one. There is also an increase in the number of online content creations since the popularization of cryptocurrency. All these factors combined will result in a huge AVOD market size that can benefit all parties involved.

Benefits of Advertising Video on Demand (AVOD)

Boost Audience Engagement: Use ads to draw the viewers’ attention and make them more interested in the content. It also encourages audiences to watch small clips or previews before opting for paid content.

Increase Audience Reaches: AVOD services are flexible in geolocation since advertisers can choose their targeted viewers. With AVOD, the targeted audience can see your ad and visit your website or store while waiting for their paid content.

Verified Users: The ad-based video streaming technology- AVOD offers a more personalized approach to advertisers. They can track the ROI of their campaigns through verified users’ data collected from advertisements on videos. Also, advertisers have a better idea of where to place their ads to reach the maximum number of users possible.

Final Thoughts

AVOD is a flexible business model that allows advertisers to target specific audiences. AVOD can grow exponentially because of the advancement in streaming technology, making it available to more people across the globe. Audience engagement will be increased through ads served with video content.

However, AVOD is a model with a lot of competition since it is trendy.

In conclusion, AVOD is a great model that can benefit all parties involved, so long as the number of viewers grows.

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