The Rise of Streaming, SVOD & AVOD

With Sky and Virgin Media forecasting a loss of one-sixth of their combined subscriber base in Western Europe over the next five years, marketers are increasingly considering streaming alternatives. According to a survey conducted in 2022, 83 percent of respondents utilized Netflix, 63 percent used Amazon Prime, and 51 percent used YouTube. So, how can advertising take advantage of the fact that streaming is becoming a more popular alternative for content consumers?

For starters, what is the difference between SVOD and AVOD? 

SVOD stands for Subscription Video-On-Demand, a recurring cost for uninterrupted video material (i.e., Netflix). In contrast, AVOD stands for Advertising-based Video-On-Demand, when content is streamed for free, but users must watch adverts to see the content (i.e., Netflix). 4OD and YouTube are two examples of this.

Agencies and media buyers must get in front of target audiences to reach them on their televisions. They may jump from AVOD to AVOD or even to a hybrid AVOD/SVOD, where subscriptions are cheaper for viewing advertisements without restrictions. You may use programmatic advertising on AVOD to ensure you acquire the ad that will reach the appropriate audience and receive direct access to relevant demographics and targeting kinds through hyper-targeting by advertising on AVOD.

We can now stream on various devices, from tablets to laptops and televisions, thanks to contemporary technology. These gadgets all have distinct advantages and disadvantages, such as the device’s portability or size. While televisions are often the largest gadgets in a home, they have a greater impact on viewers; they are also the least mobile, restricting them to a single location compared to a tablet or portable device.

This implies that one of the most important aspects of streaming is the ability to reach a customer across many devices.

Finally, with 83 percent of UAE consumers willing to watch ads in exchange for free streaming content and 19 percent entirely watching ads while streaming, the ability to target consumers on specific shows and get them to resonate with or view your brand differently is now more important and viable as a marketing option than ever before.