3 Benefits of AVOD Streaming Services

The video streaming business is growing rapidly. The number of on-demand video consumers will soon be 2 billion. A specialist needs to deal with various services to achieve significant results in the field of video marketing:

• Internet sites;
• apps;
• YouTube, Tik-Tok, Facebook, Instagram, etc;
• email of potential advertising consumers.

Positive streaming trends force advertisers to pay more attention to their target audience. They try to emphasize the positive qualities of their products, increase the effectiveness of competition, and their own profits. 

To take advantage of all the benefits of streaming video, you need to consider the current trends. In this article, we will look at the three main advantages of today’s AVOD streaming platforms and elaborate on why they have become so popular and their future prospects.

Types of monetization

Modern OTT streaming platforms support different ways of monetization. Today, there are several common types of monetization:

1. SVOD is a type of content delivery based on a paid subscription that allows the customer to view the videos the platform offers at all times. The users with a subscription have access to perfect quality content without any promotional material.     
2. AVOD is a way of offering content together with advertising. In this case, the subscriber does not pay for viewing materials because advertisers pay for streaming platform services. AVOD differs from the usual cable TV ads by the possibility to watch not the whole clip but only a part of it.   
3. TVOD – offers subscribers videos on a specific topic only. Viewing the video is paid, but the viewer only pays for individual content without a traditional subscription. This type of monetization is provided not only by VOD platforms, but also by other services, which are ready to please their viewers with interesting streams of high quality.    
4. FAST is a method related to the provision of regular TV services. The user does not have to pay for the content, but advertising is offered to him. Broadcasting is done according to a specific schedule, like regular cable TV.
5. Mixed options – can combine several of the above video payment methods at once. 

Currently, SVOD and AVOD are the two main ways of providing streaming services worldwide. Nowadays, AVOD is gradually replacing the classic types of monetization. The main reason for this is not only the ability for users to access content for free. Today, more and more platforms that support SVOD are actively integrating advertising into their content, thus reducing the cost of services for their viewers. What other benefits do AVOD services have?

Low entry threshold

Free access to resources and the refusal of permanent subscriptions allows AVOD owners to increase their viewership quickly. Platforms with high attendance have a better chance of increasing personal income by attracting advertising investors. After all, as the number of users increases, the intensity of ad views rises rapidly. As a result, its placement becomes more profitable for numerous advertisers.   

Increased availability for subscribers

Streaming platforms allow users not to be distracted by advertising and to view the offered material without interruption. This way of absorbing content is initially more convenient for users than including commercials in different parts of a TV show. 

However, as the cost of such services increased, subscribed viewers became less and less interested in continuing to use such plans. At the same time, platforms that offered ads announced enticing discounts for their customers. It was much more profitable for subscribers to view the ads than to pay for the service.    

More opportunities for foreign-language content

AVOD platforms are interested in providing content in different languages to increase the number of viewers. It is one of the main advantages of modern streaming services. This way of offering information is beyond the capabilities of regular TV channels today. The possibility to watch videos in the native language reduces any national barriers and allows customers of such services to consume personalized content without restrictions.