AVOD, meaning Advertising-based Video On Demand, is the second monetization model working effectively in the CTV and OTT space. Through this service, you can generate revenue by selling ads displayed at the beginning, end, or middle of the video or audio. These can be commercials, pop-ups, or any other type of sponsored content. The biggest perk for advertisers is that these creatives are non-skippable and thus can reach out to a larger audience across multiple devices.
How does AVOD function?
So you can tap into a programmatic DSP advertising platform
, like BidMind by Fiksu
, to drill down to the relevant watchers and listeners prone to respond to your ad creatives more readily. With AVOD granular targeting opportunities, advertisers can leave far behind age and geo and employ more precise data about their audience's interests
. Moreover, it's possible to advertise on one or several AVOD inventory platforms in connected TV
, and mobile ecosystems
Today, AVOD has promising potential. More and more companies choose AVOD for their business development due to subscription fatigue - a growing tendency among OTT and CTV viewers as streaming services proliferate and viewers find themselves juggling increasing amounts of subscriptions.
Through this service, you can generate revenue by selling ads displayed at the beginning, end, or in the middle of the video. These can be commercials, pop-ups, or any other types of sponsored content. YouTube and 4OD come to mind first when you think of the AVOD video on demand model.
When adopting the OTT AVOD service, you can profit from advertising without charging extra fees from your viewers for access to the content. AVOD isn't as popular among premium content owners and streaming giants mainly because this model generates less revenue compared to SVOD.