AVOD Video Monetization
Building a successful ad-supported video business requires operators to consider operational costs, such as ad serving, SSAI, commissions to supply side platforms (SSPs) and CDN costs. From the other side you have 3 components of generating ad revenue which include impressions available to sell, CPM rates and sell through rates. The basis for generating revenue from video ads starts with total ad impressions you generate through marketing, social sharing and watch time. The standard for estimation ad impressions is based on ads per hour typically being 2 ads inserted every 10 minutes. Sell through rates are the actual number of impressions that are actually sold. AVOD monetization on its face is pretty straight forward A user clicks on a video which triggers a preroll ad. Ad server delivers ads to Server-Side Ad Insertion (SSAI) to stitch ads into the video experience on the server-side, with the ability to deliver dynamic targeted ads to users. The biggest problem with monetization is having enough “tonnage” or ad impressions to get advertisers to stand up and take notice of your inventory. More valuable content will drive higher CPMs whereas user generated content or low tonnage will fetch lower CPMs. Minimizing your costs, such as ad serving and SSAI goes a long way to netting a profit for your AVOD initiative. You need to generate enough views to get noticed by advertisers and generate good CPMs. Originally published at setplex.com