Are you a marketer looking to up your game in the streaming landscape? Look no further than AVOD, or advertising video on demand, a new giant in the world of streaming entertainment.
From Hulu to Vudu, AVOD provides viewers with free content in exchange for being delivered targeted ads.
But what exactly is AVOD, and why is it so important for marketers to understand?
In this article, we’ll dive into the world of ad-supported streaming platforms and explore the ins and outs of AVOD. Get ready to unlock new marketing opportunities and reach audiences like never before.
What is AVOD?
AVOD is a type of streaming platform that generates revenue through advertising.
Unlike subscription-based platforms, like Netflix or Disney+, AVOD lets users watch content for free but includes advertising in between shows or movies. AVOD can be found on a variety of platforms, such as YouTube TV, Peacock, and Crackle.
If you’re looking to incorporate AVOD into your marketing strategy, here are a few pros and cons to consider.
One big pro is that AVOD offers a wider reach as it’s available to anyone with an internet connection, regardless of affordability. Not only that, but because AVOD platforms have access to user data, they have the ability to offer targeted advertising to specific demographics.
On the flip side, some viewers may find ads interruptive and annoying, leading them to switch to subscription-based platforms. Advertisers also have to compete with other ads to capture viewers’ attention, meaning it can be challenging to stand out from all the other noise.
AVOD vs. SVOD vs. PVOD
AVOD, SVOD, and PVOD are the three major distribution models for streaming services.
As we already described, AVOD is a free streaming service that relies on ads as its revenue source. Viewers can watch shows and movies without any subscription fees, but they have to put up with ads that run intermittently.
On the other hand, SVOD, or subscription-based video on demand, requires viewers to pay a monthly or yearly fee to access its content. This model does not have any ads and provides unlimited streaming to its subscribers.
PVOD, or premium video on demand, is a model that provides rental or purchase options for new releases. Viewers can rent or buy movies – that are sometimes still in theaters – for a premium price.
What Are Some Popular AVOD Platforms?
Widely known as the go-to platform for TV shows, Hulu boasts a massive library of content from major networks such as ABC, NBC, and Fox. With its personalized viewing experience, Hulu allows users to create profiles and customize their recommendations.
For marketers, Hulu offers a variety of advertising opportunities, including traditional ad spots and interactive ad formats like sponsored content and branded integrations.
Next up is Crave, a Canadian AVOD platform that’s been gaining popularity in recent years. With a mix of domestic and international titles, Crave offers a diverse selection of content to its users. Its standout feature is its partnerships with premium networks such as HBO, Showtime, and Starz.
This means users can access hit shows like Game of Thrones, The Handmaid’s Tale, and Billions all in one place. As for ad opportunities, Crave offers pre-roll and mid-roll ads as well as sponsorships for specific content categories.
Finally, we have Vudu, a Fandango Media-owned AVOD platform that’s known for its affordable rental and purchase options for movie and TV titles.
One of the more unique features of Vudu is its Disc-to-Digital service, which allows users to convert their physical media (DVDs, Blu-rays) into digital copies that they can watch on Vudu. As for marketing opportunities, Vudu offers pre-roll and mid-roll ads as well as sponsored content options.
Benefits of AVOD for Marketers
AVOD has gained significant popularity over the years, and it’s not hard to see why.
With AVOD, you can target your ads to a specific group of people – based on factors like demographics, location, interests, and more. This means you can create ads that resonate with your target audience and achieve a higher conversion rate. Moreover, you won’t be wasting precious ad spend on people who are not interested in your product/service.
Plus, AVOD platforms provide marketers with a wealth of audience insights and data. You can learn more about your audience, such as their viewing habits, preferences, and feedback. This knowledge is incredibly valuable, as it allows you to create highly tailored campaigns that speak directly to your audience’s needs and interests.
Compared to traditional advertising, AVOD offers a range of more affordable options. You can find advertising slots that fit your budget, and some platforms even allow you to bid on ad space to get the most bang for your buck. This means you can reach your target audience without breaking the bank.
Challenges for Marketers
Despite the benefits AVOD presents, there are also some challenges.
One is competition. With so many ads vying for people’s attention, it’s easy to get lost in the clutter. This means your ad must stand out to capture the attention of your target audience. You can do this by focusing on creating unique and engaging ads that speak to your audience’s needs and interests.
Not only that, but many viewers now use ad-blockers to skip over ads, which can significantly impact your ad’s reach. Some people have concerns (rightfully so) about data privacy, which means targeted advertising might not be as effective as before.
Therefore, we need to be transparent about how we collect and utilize data and respect user privacy.
The Takeaway
If you haven’t already, it’s time to consider exploring the world of ad-supported streaming platforms. Whether you’re a small business or a large corporation, there’s immense potential to reach new audiences, strengthen brand awareness, and ultimately drive sales.
As the media landscape continues to evolve, it’s important to stay ahead of the curve and embrace new opportunities for growth – and AVOD is a great place to start exploring.
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