Consumers use a wide range of video-enabled devices to watch more than just movies, TV shows, and funny clips. Video is equally well-suited for a variety of other purposes, such as company and product presentations, application scenarios, explanatory videos, and employer branding campaigns. The key to success lies in producing high-quality videos and addressing the target audience effectively.
Video on demand (VOD) is a versatile medium for delivering such content, and ad-supported video on demand (AVOD) is a common way to finance it. According to the industry association Bitkom, AVOD is growing rapidly. For publishers aiming to keep viewers satisfied across diverse playback devices, maintaining high video quality is crucial. However, “quality” encompasses more than just resolution—it includes multiple dimensions that influence the user experience.
MORE THAN JUST RESOLUTION
When thinking about video quality, resolution or image sharpness is often the first thing that comes to mind. While 4K resolution is considered a high standard, most providers have yet to fully support streaming 4K content due to the significant data volumes required. These volumes can strain current data transmission capabilities, leading to buffering and playback interruptions that degrade the user experience. As such, image sharpness is just one aspect of video quality.
THE EFFECT OF LOADING TIMES
Delays in video loading significantly affect viewer retention. News sites and other services frequently lose users due to buffering during playback. Even major platforms like Netflix have acknowledged this challenge and are experimenting with monetizing loading times through advertising. For AVOD providers, achieving smooth playback alongside high-quality advertising is key to delivering a seamless experience.
SCALABILITY CHALLENGES
Scalability is essential for handling various content formats and delivery methods. Over the years, proprietary streaming formats like RTMP and RSP have largely been replaced by open protocols such as HLS and DASH, which offer the necessary scalability. These formats, supported by initiatives like the Streaming Video Alliance, are expected to become even more widespread. As older formats phase out, the market will continue to consolidate, simplifying operations for content providers.
BATTLING AD BLOCKERS
Ad blockers remain a major challenge for AVOD, significantly impacting revenue. For instance, a Pagefair analysis found that 29% of VoD users in Germany used an ad blocker in 2016. Cloud-based delivery solutions, such as server-side ad insertion (SSAI), allow publishers to bypass ad blockers while simultaneously improving playback quality. SSAI integrates ads seamlessly into video streams, enhancing the viewing experience while maintaining ad revenue.
INVESTING IN QUALITY
Viewers have the right to skip video ads that are intrusive or poorly produced, but publishers also have the right to monetize their content through advertising. Balancing these interests hinges on delivering quality. To make AVOD successful, publishers must prioritize two key elements:
- A fast-loading player that ensures smooth streaming, prevents playback interruptions, and fosters viewer engagement.
- SSAI technology that shifts advertising decision logic to the server, bypassing ad blockers, and enabling content customization across devices.
ENHANCING THE USER EXPERIENCE
Investments in these areas improve user experience, encourage consumer interaction, and increase revenue for publishers. By leveraging high-quality videos, companies can effectively deliver tailored content to diverse audiences and ensure accessibility across a range of devices. High-quality AVOD is more than just a content delivery method—it’s a way to build lasting connections with viewers while supporting sustainable business models.
