Series: Five OTT trends to watch in 2021 — Part 3
One of your biggest decisions when launching a new OTT service involves determining how you will monetize your content.
The two primary revenue models commonly used by OTT content providers are ad-supported video on demand (AVOD) and subscription video on demand (SVOD) — each of which comes with its own unique opportunities and challenges.
2020: A year of hypergrowth for AVOD
AVOD has long been the “weak baby brother” of its mighty SVOD (subscription-based VOD brother). However, everything changed in 2020! Now Media Play News calls AVOD ‘Hollywood’s rising star’ and Broadcasting & Cable referred to it as the new ‘Media Gold Rush’.
Why AVOD makes sense?
The new era of AVOD brings a huge opportunity for niche players with valuable content to launch a successful monetization model.
Better targeting means more money
Data allows for precise user-level targeting, making it an increasingly attractive option for advertisers. The concept is fairly simple to understand: if you have compelling content for cars, and -based on a wide array of attributes and online behavior- you know that your user is looking for a luxury SUV, then Tesla, BMW, Porsche, or Lexus will be willing to pay top dollars to be in front of that potential buyer.
This is the new reality of successful AVOD companies: gather relevant data and implement a dynamic advertising model for brands.
Incorporating live streaming into an AVOD service is a must.
This helps to extend audience reach as well as revenue opportunities, as live video is a great way to reach new viewers and keep current viewers engaged with new content, original shows, podcasts, and user-generated content, with creative options like games, chats, and polls.
Streann: innovation in AVOD
Want to launch your Advertising-supported Video on Demand? Our robust platform converts your content library into a money-making machine, through unique engagement and monetization features and the most robust advertising revenue models.