AVOD stands for Advertising Video On Demand, which refers to a digital content distribution model where viewers can access video content for free but are exposed to advertisements during the viewing experience. AVOD platforms generate revenue by selling advertising space within their content, allowing advertisers to reach a large audience while offering viewers free access to movies, TV shows, and other video content.
Significance and Uses
AVOD is significant as it allows content providers to offer their content to a wide audience without requiring a subscription fee. It provides advertisers with an opportunity to reach engaged viewers through targeted ads during the streaming experience. AVOD platforms generate revenue by delivering relevant and personalized ads to viewers, providing a win-win scenario for both content providers and advertisers.
Example
A popular video streaming platform offers a free tier that allows viewers to watch movies and TV shows with intermittent ads. Viewers can enjoy the content without paying a subscription fee, but they are exposed to targeted advertisements during breaks in the program. Advertisers benefit from the platform’s wide user base and the opportunity to engage with viewers through targeted ads, while viewers can access a vast library of content without incurring a financial cost.