Online media is awash with new ways to consume content which makes it an exciting and dynamic industry to work in. Connected television (CTV) remains one of the fastest-growing channels, 16% of global CTV ad spending is forecasted for 2022. According to Leichtman Research Group, 82% of US households have at least one connected TV device. The exponential rise in the popularity of connected television (CTV) has significantly boosted technological development, leading to a rise in the number of options consumers can choose from. One of the most interesting aspects of this change is broadcast video on demands’ (BVODs) rise in popularity.
What is BVOD?
BVOD is a concept that refers to the creation and publication of online media content by a traditional broadcaster. The relatively low barrier to entry for major broadcasters means BVOD has become a popular format. The content is available at no charge to customers, however, they have to watch external ads in return, similar to commercials on linear TV. The exception is the BBC and its iPlayer platform which does not allow any external advertising and is funded by the license fee.
BVOD content platforms have become particularly popular in Australia (with Foxtel Now, 7plus, SBS On Demand, 10 Play, iView and 9Now proving popular). BVOD revenue for the total 2021 year was $363 million, up 67.8% year-on-year. According to ThinkPremiumDigital’s research, ads placed on broadcast video on demand platforms are better remembered and liked comparing to Facebook and YouTube video advertising. One of the reasons for BVOD’s popularity is the growing appetite of consumers to watch high-quality content on a big screen on their own schedule.
There are three basic formats of video on demand (VOD) platforms that you should be aware of. They offer different options for publishers to monetize their content. These include:
- SVOD (Subscription Video on Demand): This model is based on user subscriptions, usually on a contract that guarantees unlimited access to the content offered on the platform. Good examples of such a platform are Netflix, Amazon Prime Video, Stan, Disney+.
- TVOD (Transactional Video on Demand): A TVOD service does not charge the user to open an account and instead charges its customers for the content they view. Examples of TVOD include Sky Box Office and Google Play Movies & TV where films can be rented for a certain period of time.
- AVOD (Advertising Video on Demand). This model allows viewers to watch content for free as the platform generates its revenue via advertising. A great example is YouTube where videos are available for free but are interrupted by advertisements.
Where does BVOD fit in?
Linear TV has a number of drawbacks compared with BVOD and we can start off with the obvious one, namely reduced consumption options. The adverts that companies can run on linear TV have to appeal to the broadest audiences possible to generate a meaningful impact and there’s a lesser degree of ad placement control too. This results in ad content that is high volume, low impact, and media that is often dumbed down to appeal to the lowest common denominator.
With BVOD you can overcome these issues. BVOD platforms enjoy low subscription churn rates and are free to use. Most importantly, advertising is far more specifically targeted to individual interests and offers more opportunities to deliver relevant ads. Let’s look into this in more detail.
The benefits of BVOD advertising
BVOD media platforms offer a number of interesting advantages to advertisers. Let’s take a look at some of the best reasons why that format is so effective.
- BVOD media content is tapping into the CTV revolution as more people start to use CTV devices instead of traditional cable television in their homes. It’s a new, open field that offers a considerable advantage to those advertisers that enter the landscape sooner. With BVOD advertising you’ll be receiving an audience that can consume your advertising almost anywhere and at any time which isn’t reachable on traditional broadcasters. As CTV continues to gain popularity, this audience will only continue to expand.
- The level of detail you can employ in BVOD advertising is highly specific and you can effectively target niche audiences to ensure that your ad content is easy to budget and worth every penny. In contrast to linear TV, BVOD allows marketers to carefully select specific audience groups based on a demographic, interests, geolocation, etc. to make sure that those people are most likely to be interested in a product/service you offer. All that makes it possible to reach your target audience in a most cost-effective way.
- You can feel rest assured about the safety and status of your brand as BVOD enjoys a good reputation amongst the media-consuming public. BVOD advertising is perceived favorably as the platforms it runs on already have high-status reputations. In essence, BVOD represents a safe bet, you know what you’re advertising on. And furthemore, your ads are guaranteed not to appear next to inappropriate content by accident as that content isn’t allowed on television.
- Unlike commercials on traditional TV, BVOD advertising allows you to track your ad content’s performance so that you can analyze who watched your ads and make immediate improvements. The programmatic approach gives you even more flexibility in your strategy.
BVOD is absolutely at the vanguard of media development and those already working in related fields should look into getting involved. The attractive combination of reliable, brand-safe platforms that offer extensive targeting opportunities and allow you to change ad content as and when required is one advertisers would do well to note. The world is somewhat unstable at the moment but certainly BVOD is a sure bet for media and advertising success.