What Is AVOD and Why Both Advertisers and Publishers Love It

Cord-cutting in the cable and satellite TV industries has been at an all-time high for a few years now since millions of consumers have been shifting toward alternative video-delivery services. Video on demand (VOD) has proven to be the ideal replacement and has seen unprecedented growth lately. But with the decline of the TV industry and the rise of VOD platforms, many advertisers have been forced to look for alternative places to advertise. That is where AVOD came to save the day.

What Is AVOD?

Advertising video on demand (AVOD) is an ad-based monetization model widely used in the VOD industry. This model entails users having to watch online video ads to watch their desired content (similar to TV commercials), which is entirely free. In other words, this video monetization model allows publishers to monetize content on a pay-per-view basis.

“AVOD is able to accurately quantify through its audiences’ data for advertising partners, creating better ROI and far greater accountability.”

Tim Mulligan, Research Director and Video Analyst at MIDiA Research

AVOD has gained a lot of traction in the video streaming industry due to increased online advertising demand. Although some believe there are other, more lucrative VOD monetization models (like TVOD and SVOD services), that is highly disputable. AVOD has plenty of advantages over its monetization alternatives.

Why Choose AVOD?

AVOD is free, making it incredibly accessible for average users. This monetization model is highly sought-after by advertisers worldwide since it allows them to put their brands in front of massive numbers of users and build brand awareness. That is why AVOD is the obvious choice for advertisers looking to go directly to the consumers.

“Advertisers want to reach viewers across different platforms – and AVOD finally creates the ability for them to reach viewers on TV as well…”

Justin Gupta, Head of Broadcast and Entertainment at Google (UK & Ireland)

Aside from the above, the AVOD market size is massive and growing by the day. According to Advanced Television, the year 2020, in particular, has witnessed the AVOD industry’s rapid expansion and branching out across various global markets. European and Latin American markets appear to be the most interested in AVOD.

Numbers further back up this AVOD market growth. According to Influencer Marketing Hub, online ad revenue has risen by 15.9% throughout 2019 and is still on the rise in 2020! That just comes to show the height of digital ad demand currently.

Advantages of AVOD Monetization Model

When compared to other video streaming monetization models, AVOD has a lot going for it. Here are some of the most notable advantages of AVOD over its alternatives for both publishers and advertisers:

• High User Acquisition (Because It’s Free) — The fact that AVOD is a free viewing model makes it incredibly attractive for broad audiences. Although many people might be willing to pay subscription fees for premium content, many more will be ready to consume it if they can watch it for free! 
• Excellent Revenue Potential for Publishers and Advertisers — AVOD has incredible potential for advertisers and publishers since both are investing more and more into it. According to Statista, global video ad spend is projected to reach around $36 million by 2025. That is why the perfect time to take advantage of this growing trend is now! 
• Wide Variety of Available Advertising Methods — Both publishers and online advertisers have a lot of flexibility in advertising options. Not only is ad serving easier than ever with the sheer number of different ad networks out there, but the variety of video ad formats at one’s disposal is massive.
• Opportunity for Personalized Ad Delivery — Every marketer worth their salt knows the value of personalization. Using personalized advertising allows advertisers to better zone in on their target audience. That helps them make more sales and improves user experience.

As you can see, advertisement-based video on demand can be an incredibly potent source of income for publishers and a fantastic opportunity for advertisers.

How to Get Started With AVOD

Getting started with AVOD is not hard, but you still have to do quite a few things. The essential first step is to find an AVOD platform that meets your business needs. But what should you look for in an AVOD provider? Here are a few of the most notable features you’ll need:

• An intuitive and user-friendly video CMS
• State-of-the-art security and privacy features (password protection, ad fraud prevention, etc.)
• Stable infrastructure and a reliable CDN
• Smooth video and live streaming capabilities
• Industry-standard video monetization options (instream and outstream ads, ad pods, header bidding, ad waterfalling, VAST & VPAID ads, etc.)
• Various third-party integrations or full platform API

The above are just the essentials video content publishers will need to set up a reliable AVOD business. But where do you start your search?

If you need help with that, we suggest you consult our online video platform market analysis. We have done in-depth research into some of the best OVPs on the market in 2020 and compiled our results in a comprehensive blog post. 

But if you don’t want to spend countless hours researching and just want to find a reliable AVOD-focused video platform quickly, we at Brid.TV can help you.

We are an online video platform and a video monetization solution that offers all of the industry-standard video advertising options and more. At Brid.TV, you can enjoy an easy-to-use video CMS, high-end security, and countless video player and live stream customization options. On top of that, our recent partnership with Protected Media guarantees all our publishers full protection from ad fraud.

Do you want to get started? Sign up for our free plan and try our platform out or send us an email and request a free trial with full platform access!