Advertising Video on Demand [AVOD] is a video formatted advertisement that runs before, along side, throughout and or at the end of video on demand streaming content. The AVOD advertising model works by allowing viewers to consume streaming video content at no monetary cost, for the exchange of being exposed to video formatted advertisements.
Streaming video platforms like YouTube and Hulu and hardware oriented streaming devices provided by entities like Roku are just a few examples of companies that take advantage of the AVOD model. Such a model allows streaming video content to be assessible to larger audiences by making it financially viable for video on demand service providers to provide their service for free to the end user. AVOD provides a revenue source to video on demand service providers by allowing advertisers to pay for access to audiences utilizing the free streaming service.
According to John Glenday, a news reporter from ‘The Drum‘, consumers prioritize choice over distractions when it comes to video streaming [Source 1]; and as long as that continues to be the case, the AVOD model will continue to be a viable option for advertisers and service providers alike.
Sources
Source 1: The Drum | Roku study evidences strong hunger for AVOD streaming – including the ads [Author: John Glenday] – Published on September 9th, 2021