OTT is on a phenomenal rise; especially in India. Millions of consumers who are adopting OTT as an entertainment and information medium and hence, it has become one of the rapidly growing and preferred advertising platforms as well.
Various services have been developed using the advertising features on an OTT platform. One of those is AVOD services. It stands for Ad-supported Video on Demand service.
The Video-on-Demand is a free subscription service that compiles videos from all types of sources, some of which may not be internet-based.
We all are familiar with YouTube, and it might interest you to know that YouTube is an AVOD service. VOD part of this service is that the users can log in anytime and live stream the content; or download it for offline viewing later.
There is no cost in the form of a subscription fee involved. The introduction of the ‘Advertising’ feature in this VOD platform offers video-makers the support to monetize their videos.
Phando is not far behind in offering this service as AVOD services allow our video-makers to monetize their creations and earn profits while selling their video contents online.
AVOD and its Benefits
Video-on-Demand means that users can access videos, movies, or other AV clips without restricting themselves to any broadcasting schedule.
On the one hand, the users enjoy ubiquitous availability of this medium; on the other, the advertisers derive benefits, such as:
a. Millions of users on VoD services give advertisers a ready-made audience. They ride on the popularity of the service. So, the only job left is to do research and make ads appealing to the users’ sensibilities.
b. Low competition market is available for advertisers at VoD. Since the viewing is not restricted to a limited time frame, there is no cut-throat competition to win for the slots. It automatically means low cost.
c. Since VoD is available to access all 24 hours of the day, the advertisers garner more views and eventually more returns per unit dollar spent.
In addition to users and advertisers, the AVOD creates earning opportunities for the video makers too. They can monetize their creations by providing ads’ space to the advertisers.
Hence, apart from selling the content to the OTT platforms, the makers can strike advertisement deals and generate more revenues from the videos, movies, games, etc., running on the VoD platform.
You must have come across Outros in the YouTube videos. Outros are the signing-off screen or exit videos that come after the end of the video.
It is used mostly for branding purposes and to share contact details of the brand for which the video is made.
In the AVOD monetization model, these outros can be preceded by post-roll ads. Similarly, in-content ad insertions and ads at the start of the videos are other options available to monetize the video content.
Phando offers unmatched monetization support to video makers by providing solutions like pre-roll, mid-roll, and post-roll. These solutions are the same as the ad insertion spaces mentioned in the YouTube videos’ example above.
Top Advantages Of AVOD And How Phando Helps Avail These Advantages
AVOD is a new-found panacea that can provide solutions for better reach at a low cost. It allows advertisers to think differently and accomplish the objectives by adopting a few well-planned strategies, such as:
a. It allows the advertisers to filter the audience genre-wise. The advertisers can serve the promotional materials and ads by considering the requirements of people coming to AVOD for their unique purposes. For example, various genres available at VoD are sports, movies, news, travel & tourism, fashion, etc. Thus, serving the right content will mean more chances of conversions for the advertisers.
Video transcoding solutions and a responsive video streaming platform developed by Phando can provide the technical assistance needed to achieve better reach. These solutions help reach customers far and wide on multiple devices and platforms they use to access VOD service. Further, pre-roll, mid-roll, and post-roll coding solutions at Phando serve as the right tools for segmenting ads based on content or genre type.
b. The Ad-supported VOD allows segmenting the markets geographically too. One can identify the markets as the USA, Europe, Asia, and others. Advertisers can work on the ads according to the geographical regions, the VoD platform plans to reach.
According to the Transparency Market Research Report, the geographically diverse markets are available to leverage due to favorable conditions developing in various parts of the world.
While Asian countries offer a wider viewer base advantage, the Pacific and the Middle East regions have got the Government’s support to propel businesses to adopt AVOD-based promotion models.
Phando’s multiple geolocation support can boost the businesses’ sentiment as it offers ease of delivering content as per the target geographical regions’ rules.
Further, the availability of multiple currencies and languages and global broadcasting support eases the advertisers’ jobs.
Phando, with its clarity in approach and a better understanding of technical requirements, offers purpose-driven AVOD services.
These act as seamless enablers of video monetization processes, which can help businesses cash the increasing popularity of VoD platforms and the advantage of advanced functionalities.