We admit it. We are SUPER guilty of using acronyms in this business.
And AVOD is another acronym that gets tossed around without much explanation.
So, what is an AVOD and should it be part of your advertising media mix?
Let's answer those questions.
AVOD means Ad-Supported Video On Demand.
When used in the context of streaming an AVOD app is any app that has advertising to support any part of the business model. An AVOD can include tiered subscription based channels like Hulu, Paramount+ and Netflix (SVODs) and free ad-supported apps like Pluto and Tubi (FAST channels).
So, SVOD apps and FAST channels can both be AVODs.
The AVOD model of streaming is growing as more streaming channels discover that subscription monetization has less incremental upside.
For example, Netflix's “Squid Games” is a hit show that has gotten millions of views. Its popularity has likely resulted in some new subscribers. The real value, however, is the advertising revenue that rolls in when someone binges the show on Netflix's ad-supported tier.
More streaming companies are moving to partial or 100% ad-supported streaming. Just last month, Amazon launched an ad-supported tier of prime.
This means the way we view streaming is a lot more like the way we watch linear TV. The major difference will be that streaming advertising has a lot more data points to laser target advertising to specific customers.
If you are selling a luxury car, for example, you can target consumers based on their household income. This means less advertising waste to customers who can’t afford your product.
If you're interested in advertising on streaming, speak with one of our experts who can direct you to the best streaming product for your goals.