In the ever-evolving landscape of media and entertainment, streaming video has become the most powerful tool for engaging audiences. For content owners, especially those in broadcast or leveraging FAST (Free Ad-Supported Streaming TV), AVOD (Advertising-based Video on Demand), and CTV (Connected Television) channels, the primary challenge is transforming that engagement into revenue. With competition on the rise, optimizing your content monetization strategy is critical for success.
In this post, we’ll explore actionable strategies you can implement to maximize revenue from video content.
Understanding the Differences Between FAST, AVOD, and CTV Channels
What’s the difference between FAST and AVOD?
FAST and AVOD are similar in terms of monetization, but differ slightly in how content is accessed. FAST content is served up in a linear, schedule-based format that cable viewers will be instantly familiar with. It’s an “always on” experience, supported by ads. AVOD content, however, is accessible on-demand, meaning viewers can choose when to start the ad-supported content.
How does CTV factor in?
Connected TVs (CTV) usually offer an “all of the above” assortment of FAST and AVOD channels, as well as Subscription-based Video on Demand (SVOD). Interestingly, most manufacturers of CTVs — Samsung, Vizio, and LG for example — also offer their own FAST channels (many set to autoplay when a TV is first turned on), opening up new streams of revenue for your content.
Maximizing Ad Revenue on AVOD and FAST Channels
Understanding ad placement
It’s important to follow best practices for ad placement so you don’t interrupt the user experience. Keep in mind that you’re trying to balance your monetization goals with viewer satisfaction. Ads and their placement should be engaging, unobtrusive, and — most importantly — not cause viewers to abandon the content.
Ads are broken down into three categories:
Pre-roll ads: These ads are played before the content starts. Because the viewer has already expressed interest in the content, the likelihood of the user watching these ads is pretty high. Just remember not to overdo it. 1-2 ads will be fine. 4-5 will be annoying.
Mid-roll ads: Mid-roll ads are played at various points throughout the video playback. Frequency and clustering are important considerations for these ads. How many ad breaks will you include? How many ads will play in each break? Overdo it, and viewers may just run for the hills — or worse, your competition’s content.
Post-roll ads: For content on auto-play (and FAST channels), post-roll ads that play at the end of the content may be a great way to generate additional revenue. Just keep in mind that the post-roll ads on one piece of autoplay content will go directly into pre-roll ads on the following piece. Pay close attention to the number of ads you allow in each placement.
Consider the device
On mobile devices, you’re best served to keep ad breaks shorter, as users are typically more impatient and may drop off more quickly. On CTV (Connected TV), where viewers tend to have longer viewing sessions, slightly longer ad breaks might be receive better. It’s important to tailor your ad strategy to the platform to ensure minimal disruption.
Ad load and viewer patience
Pay close attention to your watch abandonment rates. You want to understand when viewers drop off during your ad breaks and, if a particular placement results in higher abandons, adjust the timing or format.
Additionally, you may want to consider rewarding users with extended periods of ad-free viewing (especially important for AVOD channels). These little “treats” in the viewing experience can enhance viewer satisfaction without compromising your overall ad revenue strategy.
Monetizing content on FAST and AVOD channels
There are decades of quality programming and content just waiting to be monetized in this exciting new world of content streaming. But how do you turn your archives and libraries of movies, episodic series, game shows, and sporting events into continuous streams of content (and revenue) on FAST and AVOD?
Repurpose your content
The first step in repurposing your content is to remove any “baked-in” ads, slates, or breaks that may exist (especially common in content created before the advent of programmatic ad-insertion technology).
Next, depending on your delivery method and channel requirements, you may need to insert new ad markers (for mid-roll ads) that will trigger ads to play. This is the beauty of programmatic ad-insertion and the modern streaming experience — once you remove those old ads, you won’t “bake in” new ad content ever again.
Finally, depending again on the requirements of your delivery method (and most relevant for FAST channels), you may need to edit the content or re-time the content to fit the available time in the schedule.
Software and AI-based video content editing
The process isn’t as complicated or time-consuming as it once was.
Historically, removing ads, inserting ad markers, and re-timing content meant spending a small fortune on manual video editors. Not to mention the requirements that may be in place, contractually, for editorial review if you edit the programming. And that’s for just one revenue stream or FAST channel. What about if you need to repurpose your content for half a dozen or more streaming channels?
No need to stress. Software solutions and the emergence of AI solutions like Prime Image’s Time Tailor take what once took days or weeks of manual and expensive video editing, and reduces the process to a few clicks to get faster-than-real-time results. Time Tailor is up to 90% faster than manually editing content, and saves 60% or more in editing costs.
Additionally, repurposing a single piece of content for multiple streaming opportunities or to meet several different timing requirements is a simple process.
Conclusion: The key(s) to success with content monetization
The opportunities for revenue and growth in the FAST, AVOD, and CTV space are only just beginning to make themselves known. A diversified approach to monetizing — meaning you’re not choosing one approach over the other, rather, you’re repurposing content to be used across as many channels as possible — is important if you want to maximize your content’s earning potential. Additionally, you’ll want to experiment with your ad-placement strategies based on the type of content (episodic TV vs games shows vs movies, for example) as well as the channel and device-type the user is consuming the content from.
Having a partner to help you navigate these constantly-evolving technologies and opportunities is priceless. At Prime Image, we’ve helped media companies, post-production houses, content owners, and streaming entrepreneurs maximize their earning potential for decades. We’d love to tell you more about the revolutionary and innovative Time Tailor software solution and help you accelerate your time to market, drive down costs, and expand your content’s reach.
