Benefits of video on demand Advertising over Traditional TV Advertising

Today entertainment is everywhere, and the way we watch TV has changed a lot.  No more waiting for your favorite content to stream at the specific schedule. Now, you can watch the content whenever you want and wherever you want with just a few clicks. 

This transformation is largely because of Video on demand(VOD), which allows users to choose what they want without any restrictions or rules of traditional tv.

Ad spending in the Traditional TV Advertising market in the United States is forecasted to reach US$59.18bn in 2024.

Source: Statista

In this blog, we’ll discuss the top 10 benefits of Video on Demand compared to traditional TV advertising, showing how VOD is changing the way we watch content. With advantages such as greater flexibility and cost savings, VOD is quickly becoming the go-to option for many viewers. 

Let’s dive into the reasons why so many people are opting for VOD instead of traditional television.

Key Takeaways:

• VOD advertising offers better targeting and ROI than traditional TV.

• More affordable and flexible, VOD provides cost-effective advertising options.

• Precise audience targeting ensures your message reaches the right viewers.

• Detailed analytics allow you to optimize campaign performance.

• Global reach through VOD helps your brand gain wider visibility.

• Lower Budget Compared to traditional satellite TVs launched in LEO orbits, this is not even 1/10th of the ops cost.
  

What is Video on Demand?

Video on demand(VOD) is a platform that provides a better service where you can watch videos whenever or wherever you want, instead of waiting for them to come on TV.

With VOD, you can choose a huge library of shows and movies and watch them at your convenience, without any commercial breaks. It completely operates  through the internet, which increases the efficiency of this Video On Demand platform while showcasing the benefits of TV advertising.

Video on demand (VOD) Services like Hulu and Netflix have literally taken the TV-watching world by storm, transforming the OTT viewing experience as millions of people cut the cord and switch over to online streaming services to get access to paid TV channels via live streaming.

Top 10 benefits of online video advertising over traditional television(TV).

1. Convenience

Video on Demand (VOD) provides a user-friendly way to enjoy content online, offering ultimate convenience. 

Unlike traditional TV, which relies on fixed schedules, users can stream videos at their convenience, without interruptions. 

This flexibility enables viewers to catch their favorite TV shows, movies, or documentaries anytime and from anywhere in the world, as long as they have internet access.

Actionable insight: Streamline the viewing experience by offering content with no interruptions or required scheduling to attract on-the-go audiences.

2. Connectivity

Online video advertising, particularly on VOD platforms, requires a stable internet connection and a compatible device. 

This is less restrictive compared to traditional television, where viewers are limited by broadcasting schedules and cable connections. With VOD, users can access content from virtually anywhere, provided they have a reliable internet connection. 

This enhanced connectivity opens up a wide variety of viewing options and ensures that audiences can enjoy their content without concerns about geographical restrictions or service interruptions.

Actionable insight: Focus on ensuring seamless integration across all connected devices, allowing users to switch between platforms without losing experience.

3. Cost

One of the major benefits of online video ads is their cost-effectiveness when compared to traditional TV commercials. Traditional tv advertising typically comes with high production expenses and expensive ad slots, particularly during peak viewing hours. 

On the other hand, video on demand (VOD) services enable businesses to create and run ads at a significantly lower cost. 

Platforms like Netflix, Hulu, and Amazon Prime often use subscription models, allowing users to access a wide array of content for much less than they would pay for cable.

Actionable insight: Optimize ad spend by utilizing cost-efficient VoD platforms with targeting capabilities to reach specific audiences without the need for expensive prime-time slots.

 Build your own VOD platform to upgrade your revenue growth

4. Variety

VOD services also offer an extensive variety of content, which contributes to their growing popularity among users. 

From movies and TV shows to documentaries, sports, and news, VOD platforms provide viewers with a wide variety of options personalized to their preferences. 

Many of these platforms also feature international content, giving viewers the chance to discover shows and films from around the world, thus expanding their entertainment choices.

Actionable insight: Expand content libraries to appeal to diverse consumer preferences, enhancing retention and engagement.

5. Devices

VOD platforms are built to be accessible on a variety of devices, allowing viewers to enjoy content wherever they are. Whether using a smartphone, tablet, laptop, or smart TV, users can stream their favorite shows from almost any location. 

The ability to watch videos on different devices means that people can watch their favorite series during work, or at home. 

This flexibility is a key factor in the rising popularity of VOD services, as they provide easy access to entertainment regardless of the viewer’s location or preferred device.

Actionable insight: Prioritize multi-device compatibility, ensuring a smooth experience across mobile, desktop, and smart TVs.

6. More Affordable

Video on demand advertising is significantly more cost-effective than traditional TV commercials, which can be pricey due to high production costs and ad placement fees. 

TV ads often force businesses to spend a lot for prime-time slots, creating a heavy financial strain. 

In contrast, VOD advertising enables more targeted and budget-friendly campaigns. Companies can connect with a broad audience at a lower cost, thanks to the availability of affordable production tools and platforms.

Actionable insight: Adjust ad strategies to leverage VoD’s lower entry costs for smaller budgets, offering high ROI on targeted campaigns.

7. More Screen

In the past, advertising on TV meant reaching audiences who were sitting in front of  their television sets. 

Nowadays, with video on demand advertising, businesses can connect with people across various screens, including smartphones, tablets, laptops, and smart TVs. 

This broader reach enables more extensive audience engagement, as viewers can consume content anywhere and on any device. 

Advertisers can leverage this flexibility by targeting audiences across different platforms, ensuring their ads reach a larger and more diverse group of individuals.

Actionable insight: Invest in creating content that’s optimized for large-screen experiences to boost user engagement on smart TVs and streaming devices.

8. Easier Sales Conversion

A significant benefit of online video advertising is its capacity to drive immediate sales. 

Unlike traditional TV ads, where viewers had to write down a phone number or website to get more information or make a purchase, VOD advertising allows viewers to simply click on links within the ad to visit a business website or product page directly. 

This call to action simplifies the process for businesses to turn potential customers into actual sales.

Actionable insight: Use interactive features in VoD ads, such as clickable links and instant purchases, to increase conversion rates.

Related blog: Best Video On Demand (VOD) Revenue Models for your business 2021

9. Better Reporting Metrics

Online video advertising delivers significantly more detailed and accurate reporting compared to traditional TV ads. 

With Video on Demand (VOD), businesses can easily monitor how many viewers watched the ad, the duration of their viewing, and the level of interaction. 

This information enables advertisers to measure the engagement, make real-time adjustments to campaigns, and gain a clearer understanding into what works with their audience.

The accurate metrics provided by VOD empower businesses to better understand their audience, enhancing future advertising strategies.

Actionable insight: Leverage advanced analytics and real-time data to monitor ad performance and adjust campaigns promptly for maximum effectiveness.

10. More Targeting Options

Online video advertising provides businesses with much more precise targeting options than traditional TV ads. 

On TV, ads are broadcast to a broad, general audience, making it difficult to reach the right viewers. 

With VOD advertising, businesses can target specific demographics, interests, or behaviors to ensure their ads are seen by the most relevant audience.

Actionable insight: Capitalize on behavioral data to create personalized ad experiences, reaching audiences based on viewing habits and interests.