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Home / Glossary / What Is Advertising Based Video on Demand (AVOD)?

November 2, 2023

What Is Advertising Based Video on Demand (AVOD)?

What is AVOD?

AVOD, or “Advertising-Based Video On Demand,” is a digital streaming service where users can access and watch video content for free, but are presented with advertisements during the viewing experience, generating revenue for the platform and content creators.

AVOD, SVOD, TVOD: What Are They and How Do They Compare?

Advertising Based Video On Demand (AVOD) is a streaming service that lets users watch video content for free. Instead of a monthly subscription fee like SVOD (Subscription Video On Demand) or pay-per-view costs of TVOD (Transactional Video On Demand), users watch ads. This ad-supported model offers content for free to the viewer while generating advertising revenue for the platform.

The Differences

AVOD provides content for free, punctuated by video ads. SVOD services like Amazon Prime Video and Hulu operate on a subscription-based model. Users pay a monthly subscription to access content. TVOD, on the other hand, lets viewers pay for what they watch. It’s akin to the online video renting.

Pros of AVOD

Benefits of AVOD are manifold. Content creators gain from advertising revenue. Advertisers get their message to a broad audience. Users enjoy premium video content without shelling out a subscription fee. Additionally, with server-side ad insertion, the user experience remains seamless. Ads are directly inserted into the video stream, ensuring that the viewing experience is uninterrupted.

AVOD’s Popularity

The rise of AVOD platforms like Hulu has marked a significant shift in the OTT landscape. Premium Video On Demand services have seen a surge, especially with the growth in AVOD models. Fast channels and AVOD have transformed video delivery, making online video content more accessible.

Choosing the right video platform is essential. While SVOD offers a vast library for a fee, and TVOD provides pay-per-view, AVOD remains a favorite for many. It merges the benefits of free content with the potential for content creators to earn through video advertising.

Understanding the OTT Landscape: Where Does AVOD Fit In?

OTT, or “Over The Top”, represents a new frontier in video content delivery. With OTT, content is streamed directly over the internet, bypassing traditional distribution methods. Amazon Prime Video, Hulu, and other streaming video services have soared in popularity, paving the way for diverse monetization models.

AVOD’s Niche in OTT

Advertising Based Video On Demand (AVOD) is gaining ground in this OTT era. Unlike SVOD, where a monthly subscription fee is charged, or TVOD that relies on pay-per-view, AVOD provides content for free. It’s ad-supported. Advertisers benefit by reaching an extensive audience, and users access premium video content without a subscription fee.

The Symbiosis with Other Platforms

AVOD platforms, like Hulu, coexist harmoniously alongside subscription-based platforms like Amazon Prime Video. While SVOD charges users, AVOD relies on advertising revenue. This dual model gives viewers choices: watch ads and consume content for free or pay a subscription fee for an ad-free viewing experience.

The Technology Behind

Server-side ad insertion plays a pivotal role in AVOD. It ensures a seamless user experience by embedding video ads directly into the video stream. This innovation not only benefits content creators but enhances the viewer’s experience.

Why AVOD is the Talk of the Town

The rise of AVOD can’t be ignored. Its growth is evident. The reasons? AVOD offers free content, a boon for viewers. Content creators gain from advertising-based revenue models. Advertisers find a platform to showcase their products. A win-win for all.

AVOD has carved a significant niche. Whether choosing the right video platform as a consumer or launching an AVOD platform as a business, understanding its place in the OTT world is crucial.

The Mechanics of AVOD: How Does AVOD Work?

Advertising Based Video On Demand (AVOD) stands out in the digital realm. Think Hulu. Think free content with a catch: ads. It’s a monetization model powered by advertising revenue.

The Art of Monetization

Content creators partner with advertisers. They serve video ads, seamlessly embedded into streams using server-side ad insertion. Users watch ads, and in turn, enjoy premium video without any subscription fee. It’s an online video revolution where ad-supported content reigns.

The Role of Advertisers

Advertisers are the lifeline of AVOD. Platforms such as Hulu and Amazon Prime Video offer ad-supported options, connecting brands with large audiences. Ad revenue flows in, making content for free possible. Every video ad watched plays into the advertising-based revenue model, supporting both the platform and content creator.

Distinguishing AVOD from SVOD and TVOD

SVOD, like Netflix, charges a monthly subscription. TVOD, on the other hand, is pay-per-view. AVOD? Completely different. No fees. Users simply watch ads, ensuring a unique viewing experience. The rise of AVOD signals a shift in streaming video services, as more users opt for free content over subscription-based or transactional models.

Benefits and Growth

The benefits of AVOD are clear. For users, premium video on demand without monthly commitments. For advertisers, a platform to showcase products. The growth in AVOD is undeniable. The reasons? Users get to choose the right video content without barriers, and advertisers reach wider audiences.

AVOD, with its unique video monetization strategy, is reshaping the OTT landscape. It’s a blend of popular video content, innovative ad delivery, and a revenue model that promises sustainability and growth.

Choosing the Right Video Platform: SVOD vs. AVOD

Advertising Based Video On Demand (AVOD) delivers free content. Users watch ads; they get premium video on demand. It’s a direct result of the advertising-based revenue model. You’ve seen it: popular video platforms like Hulu. Then there’s Subscription Video On Demand (SVOD). Think Netflix. Users pay. They get online video, uninterrupted.

The Pull of AVOD

AVOD is rising. Fast channels and AVOD platforms sprout everywhere. The reasons? The benefits of AVOD are vast:

  • Ad-based video: Users love free. Watch some ads; enjoy your show. Simple.
  • Video Advertising: For brands, it’s a goldmine. Directly into the video goes their message. Server-side ad insertion ensures seamless blending.
  • Growth in AVOD: More people choose AVOD. Streaming video services are booming. The stats back it up.

SVOD’s Shine

Not a fan of ads? SVOD’s your game. Pay a fee, get uninterrupted content. It’s premium video on demand, no strings.

Making Your Pick

Consider your audience. Do they prefer ad-supported content or uninterrupted streams? Evaluate video delivery needs. If launching an AVOD platform, be ready. The tech, the ads, the content – all must align.

Want to choose the right video platform? Understand your goals, gauge your audience, and dive in.

Related Articles:

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About Brian Meert

Brian Meert is the CEO of AdvertiseMint, a full service digital advertising agency and regular contributor to our Advertising Blog. Brian has written in-depth articles and marketing infographics that are used by marketing executives around the world. He writes about topics relating to Meta Ads Agency, Instagram Ads Agency, TikTok Ads Agency, Snapchat Ads Agency, YouTube Ads Agency , Amazon Ads Agency, Google Ads Agency, and Pinterest Ads Agency. After completing his MBA in marketing, Brian has spent the last 20 years working in digital marketing and helping clients like Coca Cola, Newegg, Grant Cardone and Consumer Affairs run profitable advertising.

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