When video content broadcasters and video creators are able to make money by sharing it online, it is called top video monetization platfrom. The live content streaming market will be massive and likely to reach $124.6 billion by 2025 and $338 million by the end of this year. Nearly 50% of viewers prefer live stream ads instead of subscription fees.
Choosing a Platform for Video Monetization
Video monetization typically includes the collection of cash by way of paid advertisements for a subscription business model, single point transactions on any platform, or direct transactions. By building its own online VOD platform for optimized video ad monetization since studies show that video ad monetization especially by OTT content distribution is likely to reach $44.2 b by 2022.
A Video on demand platform will include video hosting, monetization, player customization, easy embedding, advanced security, and other features. Creating a branded VOD streaming platform is an excellent way to monetize your video content.
A video on demand delivery platform is a type of media distribution system that hosts and distributes content over the internet.
Here are some pointers on the benefits of video ad monetization or Advertising Video on Demand (AVOD).
Benefits of Video Advertising Monetization
OTT advertising is a more personalized experience due to AI-backing making important recommendations or internet-driven TV sets running programmatic OTT tech. Hence, better control on audience-targeting is possible, as discussed below:
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Push Revenue
Advertising revenue from videos is expected to lead to $47 billion by 2023. They are a major revenue for businesses. Electronic advertisements are star earners in this category.
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Supporting every device
Video ads can be played on every type of device, ensuring that the video content can be accessed by every type of device. Target audiences are likely to view live video on smartphones 56% of the time and on tablets 44% of the time, hence video ads will allow viewers to watch at zero cost.
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Increasing Audience Base
Because 69 percent of US households subscribe to OTT services, and 38 percent have two or more, the audience base will always be maximised. Revenues are therefore higher due to more ad views, and higher visibility of ad results.
Video Monetization Platform Revenue Models
The three ways to’monetize’ or ‘get paid for content’ are as follows: first, provide access to video content (like purchasing a new movie on Netflix), second, provide access to the audience (like purchasing ad sports on YouTube videos), and third, provide access to the platform ( like a subscription to Amazon Prime video library).
Hence your monetization options are based on accessing “Video on Demand (VoD)” of which there are three types: Subscription Video on Demand (SVOD), Transaction Video on Demand(TVOD), and Advertising Video on Demand ( AVOD).
Subscription Video on Demand (SVOD):
SVOD platforms, In this method of video monetization, revenue to publishers is paid from the subscription amount paid by the viewers. Therefore, viewers get an ad-free experience, since no advertising is allowed. For example Netflix, Amazon Prime and HBO, Disney Plus
Advantages – This method is most effective in building recurring revenue streams as it builds lifetime value rate (LTV) from engaged users. Word-of-mouth marketing helps to build brand loyalty. In the United States, the market for SVOD services is expected to reach 1.161 million by 2025.
Disadvantages – This method must take into account the creation of exclusive and engaging video content that is not available elsewhere; otherwise, subscribers are likely to cancel.
Advertising Video on Demand ( AVOD):
In this type of monetization model, company advertisements run on the video content. Viewers have to watch it before watching the content they desire. AVOD is best used in OTT viral videos since no one will pay for such videos. Memes on platforms like Pluto TV or Crackle. The videos are very short but will have millions of views. Use advanced techniques like real-time bidding optimization for advertisement placement.
Advantages – In this model, the videos are free to view and the audience is immense. This attracts advertisers and publishers to generate revenue.
Disadvantages – Too many videos often disengage the viewers and do not offer ownership rights, like the TVOD model. However, this issue can also be curtailed by frequency capping.
Transaction Video on Demand(TVOD):
In this monetization method, users will pay to view a single video content such as a TV series season. Hence, this method is also called pay-per-view. The prices, though lesser than SVOD, provide greater operational convenience, pay attention to integrated payment systems, and purchase videos easily. This method is popular to buy and rent movies of studio quality.
Advantages – This model is ideal for content package options, since it can assign a movie per transaction, season. Is the ideal money-making option for publishers to provide timely access to TV show releases.
Disadvantages – This method is easy to retain viewers for purchasing content with additional marketing, retargeting.
HYBRID MODEL
The best features of the above models are used in this monetization method based on end-user needs. While viewers will have access to AVOD-based content libraries, access to premium content will require a subscription. For example Hulu, Roku channel, Zee5 app.
Advantages – Users shall begin with the ‘try before you buy option to build trust. Solid viewer loyalty is built where content meets their needs. AVOD options will have a wider audience and eventually become SVOD subscribers.
Disadvantages – TVOD, SVOD, AVOD each have their own specialties and are difficult to raise revenues. A hybrid model will help publishers to better manage their efforts.
Conclusion
OTT platforms are the hot-spot for video monetization. Publishers should use an optimized model which will best fit their video content and lead to rewards. As advertising technology comes to dominate digital monetization of content. Goals and strategies for optimising the four models mentioned above are required. VPlayed and other solution providers are recommended. To assist you in getting started with video monetization and long-term recurring revenue strategies.
