What is AVOD?

Advertising-Supported Video on Demand (AVOD) is one of three Video on Demand (VOD) services. In this model, consumers watch ads to access free or discounted streaming content.

Take Pluto TV, for instance. Ads intermittently air before and during whatever show or movie the viewer is watching, keeping viewership free and easily accessible. Other popular platforms that leverage this AVOD model include:

• Peacock TV
• Freevee
• Tubi

AVOD is a win-win for both advertisers and audiences. Viewers are able to consume shows and movies at a low (or no) cost, whenever and wherever they want. At the same time, publishers are still able to generate revenue from their ad-supported content.

The AVOD video-monetization model is a simple, yet effective way for content creators with a large or growing audience to monetize their video content. Rather than advertise a product or service outright, content creators offer space to companies or organizations to run their own advertisements.

What makes AVOD unique?

There are three types of video on demand: AVOD, Subscription Video On Demand (SVOD) and Transactional Video On Demand (TVOD). Not surprisingly, these acronyms are often confused for one another.

AVOD can best be distinguished from its counterparts in the way it drives revenue. In a SVOD model, viewers sign up for a subscription to access on demand-content. TVOD services also rely on a fee — viewers pay a one-time fee to watch to download or own individual pieces of content.

On the other hand, revenue in an advertising-supported video on demand (AVOD) model is entirely fueled by advertising, rather than payments made by viewers.

Each method has its own benefits. AVOD has become especially attractive to advertisers and viewers alike because payment plans and log-ins are not required. The result? The barrier to entry is low, giving advertisers access to a massive, diverse base of viewers.

AVOD has grown in popularity with today’s digital-first viewers, too. AVOD provides content that is easily accessible, on-demand — and perhaps most importantly, free. Unlike broadcast television, these ads are often shorter and less frequent, making the viewing experience even better.

The AVOD opportunity for advertisers

Video on demand – specifically AVOD – offers a unique opportunity for advertisers to create advanced TV targeting strategies that reach audiences who are highly engaged with the video content they consume. VOD viewers watch more television than most viewers on average. AVOD viewers are a golden opportunity for advertisers to reach selective, engaged and intentional viewers who are most likely to engage in relevant advertising content when it appears before them because of the self-selecting bias.

Through our TV+® platform, Simulmedia has direct integrations with over 250 networks and  publishers in the linear, connected TV (CTV) and streaming TV landscape, including every major streaming service, so advertisers can plan, buy and measure across AVOD programming. Our proprietary technology takes into consideration the hundreds of combinations of target audiences, programs, and platforms on which a given ad can run, and creates the most predictably successful campaign strategy based on your baseline metrics and campaign goals.

Alongside targeting AVOD viewers, TV+ allows advertisers to place ads across networks, platforms and programs with different audiences and goals, to create a holistic, 360-degree approach to achieving a successful campaign. And your ad strategy can pivot as the results roll in, adopting a test-and-learn approach to optimization. Most importantly, our unique access to linear, CTV and streaming TV inventory allows advertisers to understand where their audiences intersect and how best to reach them with guaranteed scale and speed that no one else can deliver.