You have quality and engaging over-the-top (OTT) content – kudos!
Now, you need to start monetizing it in a way that will earn you the highest possible revenue.
In this article, we’ll explain how you can monetize your OTT content with ads, also known as AVOD.
What is AVOD?
The most popular method used by OTT publishers monetize their apps is AVOD, or advertising-based video on demand.
This approach employs video ads to generate revenue and offers viewers free and unrestricted access to your content in exchange for watching ads.
This approached differs from other OTT monetization models like SVOD, TVOD, which use subscriptions or pay-per-view to generate revenue.
Advantages of AVOD
The AVOD OTT monetization model has been growing in popularity due to two primary advantages:
Ability to Attract Viewers
In today’s world of free content, viewers are always searching for high-quality content that doesn’t cost a penny. AVOD provides exactly that, creating an effective monetization strategy.
The success of this approach is exemplified by YouTube, which currently boasts a staggering 2.6 billion monthly active users, all thanks to its AVOD model.
With ad placements that are smartly positioned and timed, most users don’t mind watching ads in exchange for free content. As a result, AVOD streaming services are quickly outpacing their SVOD counterparts.
Advertisers Want OTT Content
As OTT content continues to grow in popularity, advertisers are increasingly drawn to it.
That is why they are willing to pay significantly higher CPMs for OTT ads compared to traditional display ads. The reason for this is that OTT ads offer more advanced targeting capabilities, increased viewability, and larger budgets.
Disadvantages of AVOD
There are two major disadvantages to the AVOD model.
User Experience
There’s no reason to sugarcoat it: ads effect user experience. Most people are used to seeing ads and understand that they are necessary to access free content, but still, some users still prefer to have no ads.
That’s why, as a publisher, you must find the middle ground between showing enough ads to generate revenue, but not so many that it overwhelms the viewer.
Market Uncertainty
When there is a market downturn, advertising budgets are one of the first things to get cut.
And when advertising budgets are cut, that means less revenue for publishers using the AVOD model.
How to Implement OTT Ads
To implement OTT ads, you’ll need to work with a monetization partner that has expertise in programmatic video advertising.
Here are the steps you should follow to implement OTT ads effectively:
Choose an Effective Monetization Company
Look for a monetization company that has a strong record of success.
Integrate your Partner’s SDK
To serve ads, you’ll need to integrate your partner’s software development kit (SDK) into your OTT content.
Configure and Optimize Ad Preferences
Configuring and optimizing ad formats, placements, and frequency is crucial to ensure that you are maximizing your ad revenue.
How to Maximize Your OTT Ad Revenue
The success of AVOD monetization hinges on the level of competition for your ad inventory. The more high-quality advertisers competing for your ads, the more you can charge for them. However, the challenge lies in attracting a broad range of advertisers to your platform.
Although Google has the world’s largest ad exchange and is the go-to platform for publishers, it was a latecomer to the OTT game, with its first OTT and CTV monetization product only launching in 2022.
As a publisher, partnering with a monetization company such as Adnimation, which has access to Google’s OTT demand, is critical.
Such a partnership can help you tap into the power of competition, driving up your revenue and yielding significant results. By working with Adnimation, you can gain access to Google’s vast OTT video demand, which will provide you with a significant advantage over competitors.
To learn more about Google’s OTT monetization solutions, get in touch with us today.
