today's fast-paced digital world, various streaming models have emerged to cater to different consumer needs. One such model is Advertising-Supported Video on Demand (AVOD). But what exactly is AVOD, and why is it gaining traction?
What is AVOD?
AVOD stands for Advertising-Supported Video on Demand. It's a streaming service model where users can watch content for free, but with intermittent advertisements. Unlike subscription-based models (SVOD), AVOD relies on ad revenue to support its operations.
Brief History of AVOD
The concept of ad-supported media is not new. Traditional television has operated on this model for decades. However, AVOD's digital evolution began in the early 2000s, with platforms like YouTube leading the charge. As internet speeds increased and mobile devices proliferated, AVOD became a viable alternative to paid subscriptions.
How AVOD Works
The Business Model Behind AVOD
AVOD platforms generate revenue by displaying ads to viewers. These ads can be in various formats, such as pre-roll, mid-roll, and banner ads. Advertisers pay the platform based on metrics like impressions and clicks. The platform, in turn, offers free content to attract a large audience, creating a win-win situation for both advertisers and viewers.
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