Video On Demand (VOD) is any content distribution service that gives viewers the ability to stream video content through the internet, from wherever, and whenever they want. There are three main VOD advertising models that advertisers have been taking advantage of over recent years to gain revenue from video-on-demand streaming and platforms.

    However, with TV and digital technologies constantly evolving and advertising trends changing rapidly, it leaves us wondering is VOD still effective? Well, here’s our take on whether VOD advertising models are beneficial for your brand in 2022.

    What is VOD advertising?

    Video On Demand advertising is any form of advertising that is streamed through on-demand services and OTT platforms, whether they be paid services or free platforms. There are three main VOD advertising models – SVOD, AVOD and TVOD.

    Subscription video-on-demand (SVOD) is an on-demand service in which users pay a subscription fee for a paid service that grants them access to watch as much video content they want until the subscription expires. This model allows its viewers to consume as much content as they like at a flat rate every month.

    Advertisement based video-on-demand (AVOD) is a VOD streaming model that allows users to watch its content library completely free of charge, relying on advertisements for revenue. Users must watch advertisements before or during the service’s content, however, these ads often have a ‘skip ad’ option.

    If you are looking for advice or assistance on the best AVOD solution for your brand, you should consider AVOD services by Finecast for tailored help from the experts.

    Transactional-based video-on-demand (TVOD) is a pay-per-view service that allows consumers to enjoy the content. Instead of paying a flat charge to consume as much content as you like, you pay a one-time fee for the permanent purchase or rental of a single piece of content.

    How to use VOD advertising in your brand’s marketing

    Though SVOD is the most popular VOD service among consumers in terms of the content it offers, AVOD is the best model for advertisers. Advertisement based video on demand is free for consumers to stream as it relies on ads for revenue. Since AVOD relies on ads, this is the best VOD model for brands to advertise on.

    The AVOD advertising strategy increases brand awareness and attracts new customers while also generating a passive income revenue for your business. AVOD services have a huge number of users since they are free services, and users are always watching a variety of content and material. YouTube is one of the most popular AVOD services – and it allows users to post their own content – attracting millions and millions of viewers to a whole range of different videos.

    AVOD advertising in 2022

    Marketers should still be interested in this video advertising model in 2022 since it takes advantage of the large audiences who interact with internet video content regularly. YouTube and other AVOD services are not going away anytime soon – in fact, video sharing services like TikTok are only getting bigger and bigger. Since everyone is on their phones all the time, and thus watching the likes of YouTube regularly, this advertising strategy is one you don’t want to miss out on.