: The Freemium Model: Role of AVOD in the Indian OTT advertising ecosystem #IndiaNEWS #Indian Social Media AVOD helps brands get an engaged audience and viewers get free content. Experts share what

The Freemium Model: Role of AVOD in the Indian OTT advertising ecosystem #IndiaNEWS #Indian Social Media
AVOD helps brands get an engaged audience and viewers get free content. Experts share what works in AVOD from a content and advertising perspective.

Ever since the closure of cinemas due to the pandemic-induced lockdown, there has been a rise in OTT consumption. A lack of new content on TV too added to this effect. Though both industries tried to stay afloat by opening theatres in areas and at timings it was safe to do so and by adhering to norms while shooting new content, it has been a tough ride. With all family members majorly staying at home, the pattern of individual viewing has definitely increased as it helps facilitate harmony in close quarters. Even when the theatres were open, in some places, people werent allowed to take eatables inside — chipping away at the experience of it all. The convenience and choices offered by OTT platforms have been to help tilt numbers in their favour, helping the freemium model with advertising video on demand (AVOD) options.

According to a PwC report, India holds the most potential of any market in the world. It is expected that the country will overtake South Korea, Germany, and Australia by 2024, jumping to being the six-largest market with its OTT video revenue. Subscription video on demand will be the prime driver of revenue, increasing at a 30. 7% CAGR from US8mn in 2019 to US. 7bn in 2024, the report states.

Another interesting aspect of this growth is how its helping the ecosystem at large. According to PwC, this new at-home entertainment has led to the rise of direct-to-consumer apps, local ‘bite-sized’ entertainment platforms, and user-generated content (UGC) formats. This trend can be seen to be favourable for OTT advertising as brands get to tap into niche audiences that would not just watch the content and become potential customers but also engage in word-of-mouth and organic marketing.

The freemium model is like a cherry on top as it helps facilitate gains for both brands and OTT viewers, via AVOD. Especially, in the Indian market, where users are critical of paying a fee for content. For instance, when Netflix first entered India, many opined that the OTT platform will have to work hard to convince Indian content consumers to part with a premium fee. While there has been a shift over the years with research showing that Indian viewers now prefer renting content officially as opposed to owning it illegally (pirated content), freemium model played a key role in finding a mid-way that works for both parties.

Share Of The Pie

The OTT market is segmented into advertising video on demand (AVOD), subscription video on demand (SVOD), and transactional video on demand (TVOD).