How to Make Money With OTT Advertising
February 28, 2022
Over the past couple of years, OTT popularity has exploded. In 2020, nearly 1.5 million subscribers cut their cable and switched to streaming media online. People continued to cancel their cable subscriptions in 2021. If you're wondering how to use OTT advertising to make money, you're in the right place. In this guide, we'll show you some of the best ways to do just that.
Sell Advertising on Your Channels
AVOD, an acronym that stands for Advertising-based Video on Demand, is one of the most popular ways to make money with over-the-top advertising because it is so easy to acquire users. The end user gets to view content for free in exchange for viewing ads.
While younger people may reject the idea of viewing ads, older people are usually more comfortable with the idea because they viewed ads between TV scenes growing up. This model is also very popular among people with tighter entertainment budgets.
Video Advertising Networks
One way you can sell advertising on your free channel is by joining a VAN (video advertising network). This is one of the fastest ways to start getting advertising revenue. The networks will connect you to a number of marketers who want to advertise.
One important thing to consider regarding VANs is that you don't have a say in what ads appear on your channel. If a marketer displays an ad on your channel and it offends some of your users, they may stop watching your content. Another important thing to consider is that VANs will only fill two-fifths to three-fifths of available ad space, meaning you leave money on the table 40 to 60% of the time. Finally, the VAN takes a cut of the ad revenue.
Direct advertising may take longer to bring in ad revenue, but you have a lot more control over the money coming in. You will need to develop a custom ad server, find advertisers, and negotiate your rates directly. However, you will never have to advertise a product or service that you object to morally. Also, you are less likely to offend your viewers if you decide what advertisements to run.
Getting sponsorships is another great way to make money with over-the-top advertising. One of the greatest benefits of this technique is that it is incredibly simple. Most of the time, sponsors will send you a script to read, so you don't have to come up with your own advertising. Also, you probably won't have a problem finding a sponsor that allows you to use banner ads or something similar if you don't want to give a spiel during your video.
There are many ways you can turn advertising in the over-the-top media service space from a cost center to a profit center. Some of the most effective methods include selling advertising on your channels through VANs or direct advertising and getting sponsorships. For more information on how you can make money with over-the-top advertising, contact us today at Lightcast.