Fifty Explains is a series that breaks down the different technologies, lingo and jargon of the ad tech world.
VOD. What is it and what does it stand for?
VOD stands for video on demand. It is essentially any piece of video content that can be started whenever a viewer wants – hence ‘on-demand.’
Right, so like Netflix?
Kind of – yes and no. Netflix can be considered VOD, but it is also considered an OTT service, which stands for “over the top”. The crucial difference between OTT and VOD, is that OTT requires an internet connection whereas VOD is any video content, launched on demand, so that can also be via a satellite or cable box such as Sky’s VOD service that users can access via their Sky+ box.
OTT describes technology outside (or on top) of traditional broadcast media, but don’t worry, we have a whole other post about OTT, right here.
Ok, back to VOD.
Another defining element of VOD is that it is pre-recorded content, not live. That means the same platform can have VOD and non-VOD content: a livestream on Youtube for instance, is not VOD, while a regular Youtube video is.
To add to the complication, VOD can be accessed in all sorts of ways. The content can be free to access like Youtube but there is advertising, accessed via subscription like Netflix, through a broadcaster service like Sky+ or purchased on an ad hoc basis, like renting a movie on iTunes.
These are the different monetisation models known as AVOD or “advertising video on demand”, SVOD or “subscription on demand”, BVOD “broadcaster video on demand” and TVOD or “transactional on demand”.
So how does advertising placement work with AVOD? Is it different to television advertising?
Well, AVOD is a much more precise and targeted method of reaching viewers. While traditional television advertising placement is more broad in its targeting, often on a regional or national basis, AVOD allows companies to choose the precise traits they want to target, whether that be demographic, location-based or particular interests.
The analytics you can get from digital content also means you will have a much greater understanding of your audience and who is engaging with your campaign compared to television. Rather than just working on building brand awareness, AVOD enables brands to understand how audiences convert as well.
Got it, so it’s highly targeted and measurable. Anything else that I need to know?
VOD is an incredibly popular form of content viewing, and is only set to grow. According to Ofcom, nearly half of UK adults now consider online video services to be their main way of watching TV and film, whether that be on desktop, mobile or through an internet-connected television (CTV – another acronym, you can learn more about here). What’s more, amongst 18-34 year old, almost half (46%) said that they could envisage not watching broadcast tv at all in five years time. A third (29%) of people within the 55-64 age group agreed with this statement –– indicating a significant uptake of VOD across various demographics.
What this ultimately means is that if you want to create a successful campaign strategy that has greater impact, you simply cannot ignore VOD.
To discover more about how Fifty can deliver performance uplift on your VOD strategy, get in touch with our Sales team or book a free demo today.
