A popular news platform revealed, ‘’42% of survey respondents are watching more Internet-connected television, including 35% consuming ad-supported VOD content.’’ As a business and video content owner, most of you’ll have heard highly of SVOD, TVOD, etc. models, but did you know that AVOD streaming services are soon coming to light?
A few video content owners are using AVOD streaming services, but did you know that this video monetization platform model can impact your OTT revenue highly?
Having an AVOD platform doesn’t just benefit advertisers alone, it gives VOD solution content owners like you the ability to promote your content. But how is this possible with an AVOD model?
This blog covers all the essential details related to AVOD, meaning, perks of using an AVOD revenue model, etc.
6 Ways Revenue Can Be Driven From An AVOD Streaming Service
AVOD trends are common to anyone who follows it. But are you aware of how this AVOD revenue model works?
Here is an overview of the same:
1. Learning about Ad Fills
Ad fills help you understand how many of your ad slots are filled up. For instance, if your ad slots are 100% filled, every ad slot has ads in them. You need to calculate and find the percentage for the same, and the formula is the number of ads served / total number of ad requests and multiply the same by 100.
2. Enhancing all Ad fills
It is always better to have almost all your ad slots filled, however, even if you don’t have the complete slots filled, a good number should be enough. But if you’re struggling with this, you can enhance your ad fills in multiple ways, such as customizing your ads better, investing in a good advertiser, etc.
3. Create Target Ads
The issue with ads is that some don’t match users’ interests. But what happens when you target your ads to the right user? The probability of it being viewed will be high, and users will watch till the end instead of skipping it. Use data to understand your users viewing habits and display ads that cater to their interests.
4. Use multiple formats for ad filling
Ad formats are multiple in number. It is always better to explore and use such ad formats to seamlessly fill in the slots without disrupting or interfering with anything, such as the speed or quality of the VOD content.
5. Invest in good advertisers
When you invest in a good advertiser, chances are your ad slots will be filled quicker. Don’t engage with any advertiser for the sake of it. For instance, if you’re selling fitness VOD content, engage with brands that fall under the same industry. This gives you a better partnership and drives revenue with a good fee in return for placing the ad.
6. Conduct programmatic advertising
Programmatic advertising is becoming quite the topic, especially in the OTT sector. Programmatic advertising uses technology that will be automated and is commonly used to help buy advertising spaces. You can engage with such advertising space providers where they will buy your ad space and then send you ads that match your AVOD streaming service platform.
4 Ways Revenue Is Driven From AVOD Services
There are multiple ways to earn revenue as a business or video content owner. Thus here are the four ways advertisers will pay you and increase your revenue count.
1. Cost per impression (CPI)
As the name suggests, you earn revenue from the number of ads that are being viewed.
2. Cost per click (CPC)
With cost per click, you will earn revenue from the number of clicks that have appeared from the ad. These clicks could be anything, such as mouse clicks, etc.
3. Cost per millie (CPM)
Another way you can earn revenue is with CPM. Cost per millie functions the same way as the cost per impression. However, the M here is referred to as the roman numerals 1000. So, you receive the revenue when your ad impressions hit 1000.
4. Cost per action (CPA)
Lastly, with cost per action, you will earn revenue if the user has conducted a form of action. For instance, if an ad that is placed expects users to fill out a form, once the user does the former, you will receive your revenue.
6 Tips On Building A Rewarding AVOD Revenue Model
Now that you’re aware of what AVOD is and how you can earn better from it, here are six steps to consider when building your AVOD platform in 2022:
1. Create a VOD platform
Before you get started with your AVOD revenue model, it is important first to set up a VOD platform where you can exhibit your brand, the VOD content you offer, etc.
2. Invest in a video monetization platform provider
Investing in a reliable video monetization platform provider is always better since they offer better benefits that can enhance your AVOD platform.
3. Provide a free trial
Free trials help your user explore and understand your AVOD platform better. Use this time to tap your users’ attention and convert them into loyal users.
4. Incorporate the AVOD model concept
While other video monetization methods are available such as SVOD, TVOD, premium, etc. Incorporate the AVOD streaming service revenue model because, as seen above, your brand revenue can be generated well.
5. Provide valuable content
Offer your users valuable content so that they can continue to retain their attention on your AVOD platform.
6. Decide on cost for the advertiser
Before investing with any advertisers, you should first decide how they can benefit your brand. Once selected, decide on pricing that works for both parties in terms of profit and driving revenue for the long term.
4.Use multiple formats for ad filling
Ad formats are multiple in number. It is always better to explore and use such ad formats to seamlessly fill in the slots without disrupting or interfering with anything, such as the speed or quality of the VOD content.
5. Invest in good advertisers
When you invest in a good advertiser, chances are your ad slots will be filled quicker. Don’t engage with any advertiser for the sake of it. For instance, if you’re selling fitness VOD content, engage with brands that fall under the same industry. This gives you a better partnership and drives revenue with a good fee in return for placing the ad.
6. Conduct programmatic advertising
Programmatic advertising is becoming quite the topic, especially in the OTT sector. Programmatic advertising uses technology that will be automated and is commonly used to help buy advertising spaces. You can engage with such advertising space providers where they will buy your ad space and then send you ads that match your AVOD streaming services platform.
Conclusion
If you’re considering AVOD streaming service as a form of revenue generation, the above tips are great to help you get started. The AVOD model has always been kept in the backseat for fear that it cannot generate more revenue compared to other monetization models. But now that you have the details above, use them in the right way to enhance your revenue growth further. But before you can get started, invest in a good video monetization platform provider that could offer you a better opportunity to set up your business as well as offer tons of benefits that can augment your AVOD platform. So, tell us, when do you plan to get started?
