What is AVOD? The ultimate beginner’s guide

AVOD is one of three main strategies for monetising VOD services. ‘Video on demand’ is any service that allows consumers to view what, when and where they watch content online, and for advertisers this can be a money-making goldmine. SVOD and TVOD are two VOD models that require viewers to pay some sort of fee, but AVOD requires no fee at all.

So, how can you take advantage of VOD services in your advertising campaign? Here is the ultimate beginner’s guide to Advertising Video-On-Demand.

How AVOD works

AVOD stands for Advertising Video-on-demand. While other VOD business models require consumers to pay some kind of fee to watch a certain amount of content, AVOD allows users to watch the service’s entire content library for completely free of charge without having to pay any subscription or one-off fees. However, as the name suggests, viewers must sit through and watch ads before or during content – much like with traditional TV broadcasting.

 On many AVOD platforms, there is a lot of original material, including use-made original content. Take Youtube for example – users can upload their own content which opens up the doors for various content types, meaning just about vey specified target audience that a business may be targeting can be found on the platform as there is content for everyone and no major restrictions on what users can upload.

How AVOD makes money

Before or during the content streamed on AVOD services, viewers must watch ads. These are, however, often skippable or can be cut short. Ads that stream on AVOD services, unlike conventional broadcasts, are frequently tailored to the individual consumer since they may access data over the internet.

Premium content owners rarely deploy and embrace AVOD since it tends to generate less revenue than SVOD and TVOD with it not charging a single fee for viewers to access and watch the content provided. Advertisements are how AVOD services like Youtube, who have implemented the AVOD model, make money and actually earn revenue from its video on demand system. TV advertising services such as Finecast can help your business find success with the AVOD business model.

AVOD is resurrecting linear TV

The AVOD business model is generally associated with traditional linear television, the original cable and satellite way of viewing. However, in recent years, it has gained in favours and appeal among consumers with many AVOD services attempting to revive the free TV trend – and why not? The SVOD streaming battle is heating up with many services coming about and demanding subscription fees – a free service may be the best option for those who can’t decide and don’t want to break the bank.

Examples of AVOD services

Some prime examples of Advertising VOD services include Youtube, Dailymotion, Pluto TV ITV Hub, and All 4. Most satellite TV channels provide their own streaming service so that viewers can catch up on and stream content that has aired on linear TV, without having to wait for it to air again at a scheduled time. Channel 4 and ITV both have AVOD services in the form of All 4 and ITV Hub which are free for users to stream its entire content library, with advertisements before or during streams acting as its main form of revenue.