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The break from ads is over - How to save streaming (Authored Article)

Here’s a surprising fact: the CW’s average viewer is 58 years old. If you’ve ever seen any of the network’s content – shows like Arrow or The 100 – you would be forgiven for finding this surprising. Nonetheless, the statistic is backed up by recent figures from audience measurers Nielsen.

By Dan Goman

To help keep prices as low as possible, SVODs have been exploring different approaches outside of the traditional subscription model. One of these is Advertising Video on Demand (AVOD), which incorporates unskippable adverts into streaming. AVOD cuts the cost of subscription fees, or in some cases removes them entirely, with the businesses paying to advertise picking up the additional costs.

Customers pay less, while companies can enjoy some of the results they enjoy from OTA TV. And while those with more disposable income might choose to forgo adverts, currently 60% of the UK support their addition if it means free content.

AVOD models are also an opportunity for platforms to provide customers with customized adverts that traditional TV could not, further boosting their potential. Using digital media supply chain platforms, content providers can narrowcast their messages, targeting their commercials to make truly valuable advertising for their viewers in a similar way to cookies online.

SVOD providers have already proven to themselves that analyzing data can boost their subscription figures, it just makes sense to continue the trend with their in-platform advertising.


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