Why You Should Embrace Advertising-Based Video on Demand (AVOD)

Advertising-based video on demand (AVOD) has emerged as a powerful platform for brands to engage with their target audiences. AVOD services offer free, ad-supported access to a wide range of video content, making it an attractive option for both consumers and advertisers. In this article, we will explore some key insights for brands looking to embrace AVOD and discuss recent and relevant case studies that highlight the effectiveness of this advertising model.


  • Expanding reach and targeting capabilities

AVOD platforms offer brands the chance to connect with an extensive and diverse audience. The surge in streaming service popularity has been exponential, exemplified by platforms such as YouTube, Hulu, and Tubi, which boast millions of active users. These platforms empower brands to fine-tune their advertisements according to user demographics, interests, and viewing patterns, allowing for precise audience targeting.

  • Enhanced engagement and personalisation 

AVOD platforms provide brands with the unique opportunity to foster audience engagement through interactive and personalised advertising experiences. In contrast to conventional TV commercials, AVOD ads can be customised for individual viewers, aligning with their preferences and creating a more captivating experience. 

For example, Spotify introduced dynamic video ads on their AVOD service. These ads dynamically incorporate personalised user data, such as the music they recently played to create a unique and engaging ad experience. The campaign resulted in higher ad completion rates, increased brand favourability, and improved user satisfaction.

  • Measurable and data-driven advertising

With AVOD platforms, brands can gain access to robust analytics and data insights. They can measure the effectiveness of their ad campaigns in real-time. Advertisers can have an overview of detailed metrics such as views, clicks, and conversions, enabling them to optimise their campaigns for maximum impact.

  • Cost-effective advertising solutions

For brands with limited budgets, AVOD platforms are perhaps a cost-effective advertising solution, particularly compared to traditional TV advertising. AVOD provides a more flexible ad duration, frequency, and targeting options. Brands can reach a large audience without the high costs associated with traditional TV ad placements.

Dollar Shave Club, a subscription-based grooming brand, achieved remarkable success through its YouTube AVOD advertising strategy. By creating engaging and humorous video ads tailored to their target audience, Dollar Shave Club gained millions of views and achieved a significant increase in brand awareness and customer acquisition. The cost-effective nature of YouTube AVOD advertising played a crucial role in their success. 

Advertising-based video on demand (AVOD) presents valuable opportunities for brands to engage with their target audience in a cost-effective and highly targeted manner. The ability to expand reach, personalise ad experiences, leverage data insights, and optimise campaigns makes AVOD a compelling advertising platform. The case studies discussed in this article demonstrate the effectiveness of AVOD in driving brand awareness, engagement, and conversions. By embracing AVOD, brands can unlock new avenues for growth and establish meaningful connections with their consumers in the ever-evolving digital landscape.


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