Many people spend time watching videos online. Many online video platforms emerged in a few years. There is a lot of media content available online for people to watch. Many broadcasters and individual video creators have launched their own video platforms rather than depending on popular video platforms like Youtube. Many businesses and larger organizations have started using video platforms as marketing tools for sales and promotion, while others use them for conducting training sessions.

Due to an increase in demand for online video streaming, many businesses and video creators have started monetizing on-demand video content to make money out of it. There are three main monetization methods: Subscription-based Video on Demand (SVOD), Transaction based Video On Demand (TVOD) and Advertisement Based Video On Demand (AVOD). In this blog, we are going to concentrate only on Ad based Video on Demand. 

What is Advertisement Based Video On Demand?

Ad based Video on demand is the method in which viewers can access the video content freely as they do not need to make any payment to access the video. Instead, they have to watch advertisement videos in between the video content. The advertisement may appear at the beginning, middle or even at the end of the video. Video owners or platform owners make money for placing ads of the advertisers in the video content based on CPM or CPC basis. This type of platform typically aims to attract a broader audience so that ads can be displayed to a broader audience and platform owners or video creators can make money for ads views. 

The perfect example for AVOD is Youtube. AVOD is similar to the satellite or cable networks where advertisements are displayed in between the main programmes. These platforms give new targeting options for advertisers. These platforms are run on both websites and apps. It is also accessible on all devices, maybe mobiles, desktops and TV as well. Many business and video creators have started building their own video platforms because streaming on their platforms gives complete control over the video content. While streaming on another platform, you lose partial ownership. Streaming on your own platform results in the generation of more money than streaming on another platform. 

There are two types of advertising: Direct advertising and advertising networks. Direct advertising is the process where video creators get in touch with the business that wants to place their ads in the video content. Another method is Advertising networks, where they connect Video creators with businesses searching for ads space placing ads in the video content. Advertising networks get a commission for connecting video creators with the advertising company.

Type of ads: Skippable ads and non Skippable ads. Skippable ads are ads that can be skipped after playing it for 5 seconds. Whereas in non-skippable ads, ads cannot be skipped users have to sit through ads before starting to watch the main video content.

Pre Roll Ads: These are ads that are played before streaming the main video Content.

Mid Roll Ad: Ads that are played in the middle of the video content

Post Roll Ads: Ads that are played after the video content ends.

What type of video content should be monetized with AVOD?

Advertisers pay the fee for every ad placed on the video. Some platforms automate transactions between video creators and advertisers. This type of video monetization method got popular with Youtube. Many business and video creators have moved from youtube into building an independent video hosting platform that comes with AVOD tools to monetize the video content.

Not all the videos you upload should be monetized. For example training videos for employees should not be monetized with ads. A major goal is to create quality video content so that the user can spend time watching the video. If you want to monetize the video content with ads then the content should be worth it. Even though people do not spend money to watch ads, they spend their time watching ads in between videos.

It better monetizes video with ads for educational and entertainment videos. Video can use AVOD for how-to, tips and other course videos. Adding the ad to the videos that give value to the users is the best way. But adding ads to the promotional video will not be a great move.

Viewers nowadays don’t enjoy advertisements in between videos so place ads wisely so that it won’t ruin users' viewing experience. Make sure that viewers are not frustrated by Ads. Then for your audience and your business, it’s better to monetize video content with AVOD.

Why you should use AVOD with a professional video hosting platform 

Monetizing the video content in independent professional video platforms has huge advantages like complete ownership of the content and no restrictions in content creation.

Youtube is well known for its AVOD monetization model. But youtube comes with time limitations and content restrictions. You lose partial ownership. With an individual video hosting platform, you can start monetizing video content from the beginning whereas on youtube you have to pass through certain categories like 4000 watch hours and 1000 subscribers to enable a monetization option. The best move is to monetize video content with a professional video hosting platform. Some advantage of using AVOD is it generates more revenue for the businesses and helps reach more people as most people like to watch video content without paying any money. 

Conclusion 

Using AVOD as the method to monetize the video content is also very profitable with a larger audience base. It’s simply taking some seconds for your viewers to watch advertisements while watching video content so that it helps content creators make money with video content. It is better to start with a professional video hosting platform with AVOD Ad based monetization support.