There are currently several monetization models depending on the type of OTT platform. In this sense, monetization of AVOD services is an increasingly seductive option because consumers prefer streaming with ads over other on-demand content monetization options.
It is an attractive and free model for the user, but it requires concrete efforts to really bring good economic results to the producer. Below, from JUMP Data Driven, a business data management platform designed specifically for video service players, we tell you how to boost the monetization of AVOD services by understanding user behavior and analyzing content performance.
What is the monetization model of AVOD services?
AVOD (Advertising-based Video on Demand) or advertising in streaming content is one of the ways to monetize content by inserting advertising in it.
This model is opposed to subscription-based platforms, SVOD, as it provides viewers with a catalog of free content, but with advertising interruptions.
Ways to monetize your AVOD platform
To permanently increase the monetization of AVOD services it is necessary to have a content planning, which attracts advertisements and commercials. Ads can be shown before, during, or at the end of the video.
One of the ways to schedule these productions in a simple way is through a BMS (Building Management System), a specialized control and management system such as VSNCrea, which allows you to organize all types of content, their associated metadata and even broadcasting rights.
3 steps to understand user behavior in AVOD services
The reality is that AVOD is already one of the established models in the OTT market. Its consumers have no objection to accept commercials and advertisements in exchange for free and quality content.
Moreover, experts argue that the AVOD model is better suited to audience segmentation and interests. It seems that these sessions are more likely to reach the target audience and be of greater relevance.
In this framework, AVOD has largely surpassed SVOD showing a great future ahead, although it still has to jump some hurdles, such as the reluctance of some viewers to watch ads on their favorite streaming.
What do we need to understand about user behavior to boost monetization of AVOD services? Mainly, the following 3 steps:
- Determine what they are looking for and why they choose one content over another.
- Establish what is the right time to incorporate commercials and advertisements within a production or audiovisual content.
- Discover the causes of abandonment generated by the ads in certain users, to increase the acceptance of AVOD content, analyzing our audience with JUMP RETENTION.
How to analyze and improve content performance to improve the monetization of your streaming service?
The effort to boost the monetization of AVOD services requires a complement between the study of consumer needs and behavior and the analysis of content performance.
For example, we must determine whether the content of our video service has the desired reach in terms of number of viewers, and analyze which aspects of the material influence whether the desired results are achieved.
It is also vital to understand whether the characteristics of the content are adapted to the needs of our target audience. For this, it is crucial to understand the psychology of the users we are targeting and to know what content they are looking for.
If we can do this, we will have taken a big step towards boosting the monetization of AVOD services, because platforms with more viewers will always be more attractive to advertisers and, consequently, will become more profitable.
