AVOD Monetization: What is it and how does it work?

Do you know the meaning of AVOD Monetization? OTT (Over The Top) platform services have become increasingly popular both as a consumption method and as a business model. In this sense, giants of the stature of Netflix or HBO have been able to take advantage of this, monetizing their service through the different methods that OTT platforms offer.

One of the most widely applied models is the AVOD (LINK POST) method (Advertising video on demand) thanks to its incredible advantages. If you want to know more about this type of OTT monetization, we invite you to continue reading more to learn about AVOD monetization and how it really works.


What is AVOD and how does it work?


Today’s growing increase in digital consumers has made both the media and the ways of consuming content constantly change. This is the case of traditional TV servers, which little by little have been supplanted by OTT platforms.

Due to the pandemic we are currently facing, events, presentations, concerts and conferences around the world have had to be canceled. As a consequence, with almost everyone at home, the consumption of OTT platforms has not stopped increasing. As many wonder, wouldn’t this be an excellent idea for my business?

In addition, you have options to choose from, since there is not one, but several options to monetize with OTT platforms. As we mentioned at the beginning, one of the most popular is the AVOD method which consists of advertising video ads to be monetized. But this is not all, and is that, in most cases, AVOD allows you to consume the content for free without paying or subscribing to the service.


When to use AVOD as a monetization technique?

As you have seen so far, AVOD is a monetization technique in OTT that depends mainly on the visibility of videos and advertisements by a certain amount of public to be economically feasible. The ad creator is only paid a certain amount of money for every 1000 impressions per ad. Therefore, to see favorable and sustainable results, it is necessary to attract enough public.

With the above in mind, the AVOD monetization method is ideal for online news platforms and sites like YouTube and Vimeo whose main source of income is provided by the huge number of audience served.

Of course, too many ads in the same video or a bad viewing experience can tire your users. Keep the balance between entertaining your consumers and making money so that your AVOD monetization technique works perfectly.