In the recent years, TVOD has been in the center of the discussions, and even more so with entrepreneurs diving into the digital marketing world by providing CTV and OTT services. The reason for the increase in interest towards TVOD is of its meticulous targeting and measured outreach towards consumers. Such tools and platforms, allow marketers to exercise deeper and more effective consumer engagement at a low-cost per consumer. The following article explains and defines TVOD, its advantages and its importance in the current digital marketing age.
What is TVOD?
TVOD can be understood in its parallels with SVOD, wherein instead of buying or subscribing to an entire service, TVO allows consumers to buy video content separately, with a set price. With the introduction of TV on demand, videos and movies can now be rented and purchased separately as well. Unlike the previously mentioned services, TVOD empowers both advertisers and content creators to monetize their content differently and aim towards diverse audiences.
The beauty behind TVOD model is that it allows the owners to earn revenues on particular pieces of content by taking into account the audience demand. Such a business model is of great interest to advertisers of connected TV or OTT services to get associated with, as they help in reaching out to already engaging users on high demand media.
How Does TVOD Work?
TVOD’s Integration with The Consumer
To a consumer in a TVOD format, they have the ability to access a platform such as a connected TV or an OTT app, and from there they look for the content of their liking. Once they identify the title they want to watch, they are asked to make the payment first, be it through renting or buying. Some services that are being offered by the TVOD include: rent to buy: a customer pays and rents a movie or a show for a specific amount of time, typically anywhere between 24 to 48 hours, Buying: here the customer pays a lump sum amount for content to gain access to it forever, Once the payment goes through, customers have the ability to stream the content directly through the platform. TVOD provides an appealing value for both the customer and the content developer as it allows it users to select what content they want to view and when they want to view it.
Content Delivery Improved
To enhance accessibility, TVOD content is integrated into OTT platforms, making them easier to deliver. The variety of connected devices ranges from Smart TVs, Roku and Apple TV streaming devices, gaming consoles, and mobile phones, allowing advertisers to take advantage of diverse devices and viewing habits, all because of the TVOD.
The Contribution of TVOD in Digital Marketing
Advertising on TVOD and VOD platforms
TVOD advertisements strongly appeal to viewers who have an intention to purchase. The rise of CTV advertising enable advertisers to utilize the best use of data that OTT gives so that the commercials can tap the users in a more effective and persuasive manner. Some of the advantages include:
Scalability: Advertisers can now use this demographic, behavioral and psychographic data to push ads to viewership through their campaigns.
Better Measurement: The TVOD advertisers are offered in most of the cases these metrics which are useful in decision making never lag behind. Which allows advertisers to see on that specific day what ads were shown.
Programmatic Buying: The programmatic approach is that of making it possible to have the buying and placing of advertisements to be automatic thus optimizing the campaigns for wider reach and effectiveness.
TVOD’s Contribution to Performance Marketing
Performance of the campaign is the main concern of the TVOD, and they focus on:
Engagement: These psychologists can analyze the way users interact with different systems, and the content and ads metrics_even more advanced than all marketing specialists, as the number of systems and hyperlinks is far greater than the number of interpretations.
Actual Transactions: Such a study could assist advertisers by demonstrating how many of their viewers rented or purchased their merchandise.
Cost-Per-Action (CPA): TVOD allows for greater focus on cost-per-action KPIs that can be of measurable value for advertisers, thereby ensuring that there are outcomes for which payment can be made.
Incorporating TVOD within the overall marketing mix further enhances the demand generation resource and increases the business marketing returns on investment.
Benefits of TVOD to Advertisers
Effective Audience Targeting
In contrast to television advertisements which are generally aired to all members of the public, irrespective of their gender or age, TVOD enables marketers to narrow down their targets to specific groups of consumers. Like regular television, OTT platforms featuring TVOD have extensive data regarding who would watch what, when and why. Such Information can be used by Users to classify the marketing audience into groups such as:
- Children and Adults
- Interest groups like watching sports and movies
- Regions or Countries
Different devices
Such micromarketing investments go a long way to ensure that advertisements are shown to those consumers who factor into the relevant demographic, hence increasing the chances of being viewed and clicked after.
Advertisement Placement Flexibility
TVOD advertisements can be placed at any position in advertisement and in any format. One good attribute of TVOD advertisement is its flexibility in placement. Advertisers have the option of selecting the best times, best frequencies and even the type of ads to be used which may include, but not limited to:
Interactive ads: In TVOD platforms, there is always the possibility of having interactive ads integrated; clickable banners, placing of products, or even embedding case an advertisement with a CTA in it which gives a chance for the viewers to respond more successfully.
There is a flexibility of changing ad slots in real time and thus marketers are at the opportunity of being able to rein in any trends, preferences from viewers or campaign metrics.
Analytics and measurable ROI
TVOD platforms provide additional aid for the advertisers in terms of performance monitoring, enabling easier calculation of ROI. With the help of the following metrics:
- Click-through rates (CTR)
- Completion rates
- View-through rates (VTR)
Conversions and revenue
Advertisers are also able to refine their campaigns for better results. This can be termed as a ‘bottom up’ tactic for TVOD advertising, which does allow the advertisers to make more focused investment and target only the necessary audience.
TVOD Advertising Challenges
Platform Fragmentation
The measurement of challenges in your advertising realm sums up to this fragmenting OTT standard that multiple platforms and various types of devices utilize; even though on the surface they appear to be opportunities, they are quite the hassle to deal with in reality. Creation of cross-platform campaigns for advertising does at times seem easier but can end up being hard to deliver on. Ad-targeting programs can, however, resolve this issue by ensuring the advertisements are delivered to the appropriate users across various platforms.
Willingness to Pay of the Consumer
TVOD has a dependence on consumer’s transactions which could be a curse and a blessing. Paying for the purchasing of premium content is second nature for some consumers whereas for others the notion of premium content is unpleasing. To alleviate this predicament, advertisers may focus on activities that would improve engagement with paid content, for example, discounts and exclusive access.
Ad Fatigue
Another downside with any form of advertising is ad fatigue. Viewers of TVOD are with the risk of growing tired of the amount of times they see the same ad repeated, this becomes particularly frustrating if there is an ad that is overplayed. Advertisers usually respond to such concerns by controlling the number of times the same ad is shown and varying their creative assets.
The Future of TVOD in Advertising
Connected Television Advertising Feature Integration
Integration of TVOD into CTV advertising is expected to grow as the connected televisions continue to rise in popularity. Combining TVOD and CTV advertising enables advertisers to widen their audience reach whilst providing better engagement and targeting opportunities. Advertising using TVOD should be able to remain efficient because of the continued increase in adoption of CTV devices.
Improvements in Data and Individualization
ML and big data analytics are changing the approach that TVOD services take with regards to their content and advertising. With the use of machine learning algorithms, TVOD platforms can enhance personalization even further and provide users with relevant content which in turn opens up new opportunities for advertisers to connect with consumers.
Interactive and Shoppable Ads
Within the TVOD environment, shoppable and interactive ads will likely take off as well. With the growth of DTC e-commerce and live shopping TVOD advertisers may take advantage of interactive formats that enable viewers to purchase items directly from their screens. This results in an integrated experience which eliminates the gap between seeing an advertisement and making a purchase.
Conclusion
In a data-driven manner, TVOD allows advertisers to reach out to a precise audience. Using TVOD channels for performance marketing, demand generation and programmatic advertising enhances relevance and effectiveness of campaigns. Amid ongoing development in the digital content ecosystem, SVOD (Subscription Video On Demand) gains importance and presents additional opportunities for advertisers to consider. For future development of TVOD, which already plays an important part in the marketing sphere, it can be expected that more opportunities for reaching consumers in a hyperconnected world will be introduced.
