Monetization is a crucial topic in the video streaming industry, as all businesses involved want a stable revenue stream. SVOD (subscription-based video-on-demand), TVOD (transactional-based video-on-demand), and AVOD monetization (advertising-based video-on-demand) are common revenue-generating models in the VOD industry.
Recently, AVOD platforms have gained major popularity. People switch to them to consume free content as it is impossible to purchase all the subscriptions available in the market. Viewers even don’t mind watching ad commercials during the playback.
Since many providers opt for AVOD monetization, it is vital to know how you can benefit from it.
Understanding AVOD Monetization
Advertising-based video-on-demand platforms usually allow people to watch any content available on a free basis. When this money making model is not combined with another one, it implies that videos are chargeless but include ads. There are different types of ads: pre-roll, mid-rolls, post-rolls, overlays, and so on.
Providers generate revenue by running ads during video playback. AVOD platforms are also beneficial for advertisers since they can reach their target audience.
Furthermore, thanks to targeting functionality, you can show ads to those who might be interested in the products and services advertised. You save money that would otherwise be spent on showing ads to everyone as it works with traditional television.
One of the crucial things you should consider about the advertising-supported monetization approach is a balance between generating revenue and providing a high-quality experience.
What is Server-Side Ad Insertion (SSAI)?
SSAI, or server-side ad insertion, is one of the methods to insert ads into a video. When you opt for SSAI, it means that all the ad-inserting manipulations will be done on the server side instead of the client side, as it happens with CSAI (client-side ad insertion).
With SSAI, a commercial is stitched together with a video. As a result, they are inseparable, and ad blockers cannot detect an advertisement. Furthermore, since ad blockers are unable to identify and remove ads, your revenue is saved.
Also, server-side ad insertion can personalize commercials improving the quality of experience.
Benefits of Server-Side Ad Insertion for AVOD Platforms
Let’s explore the benefits of SSAI for advertising-supported VOD platforms in detail.
1. Bypassing ad blockers
Ad blockers are specialized plug-ins or software that users utilize to prevent commercials from appearing on a website or during video playback.
SSAI helps content providers bypass them by inserting advertisements into the stream before it actually loads on the user side. A video and a commercial are as if glued together, creating one smooth stream. As a result, ad blockers cannot detect and remove ads.
2. Personalizing ads
Ad insertion allows content providers to deliver content to viewers based on the data about them. For example, it is possible to take into account geographical location, demographics, search queries, interests, and behaviour. The result maximizes the chances of reaching people interested in advertised products or services. Furthermore, the revenue is also maximized.
3. Saving and increasing revenue
Since SSAI bypasses ad blockers, your revenue is saved. Advertisements receive more impressions, and more people can learn about the product or service advertised.
Furthermore, targeting functionality based on user data helps you increase the chances of showing ads to people actually interested in the products. A 20-year-old girl will likely have different interests than a 30-year-old woman. You can stop spending resources on streaming the same ad to both of them and send the commercials each of them might like.
If you run an AVOD platform, you probably want to get all you can from it. Since advertising-based revenue-generating models depend on clicks, impressions, and other parameters, you will likely want to do everything possible to increase these data. One of the ways to do this is a server-side ad insertion, which helps you bypass ad blockers and personalize ads. Consequently, your revenue is saved and increased.