[This article is written by Benjamin Pius (Publisher @ BMA) as part of the forthcoming OTT Content Streaming And Distribution Summit 2025 on 18 – 19 February 2025 in Cape Town, South Africa. Learn more about the event here]
Effective and adequate monetisation of OTT content streaming is key to sustaining operations and generating profit.
Integrating the right ad-led monetisation strategies ensures long-term financial viability.
Here’s how to get it right:
- Choose the right monetisation model: Decide between subscription-based (SVOD), ad-supported (AVOD), or hybrid models based on your audience and content library. For example, premium content might warrant an SVOD model, while AVOD suits platforms with large user bases.
- Integrate programmatic advertising: Programmatic advertising allows automated ad buying and placement, maximising revenue through targeted ad delivery. Platforms like Google Ad Manager can streamline this process.
- Direct sales integration: While programmatic ads offer scalability, direct sales provide control and higher revenue margins. Create a dedicated sales team to handle premium ad placements and sponsorships.
- Use shared ad-tech stacks: Smaller platforms can benefit from shared ad-tech solutions, aggregating audiences to attract advertisers seeking scale. Collaborate with other OTT providers to leverage these shared resources.
- Measure performance: Use analytics to monitor ad performance and user behaviour. Key metrics like CPM (Cost per Mille) and CTR (Click-Through Rate) help evaluate the effectiveness of ad campaigns
- Avoid ad fatigue: Balance ad frequency to prevent alienating users. Employ techniques like skippable ads or frequency capping to maintain user satisfaction.
By combining the ideas and strategies for audience-focused ad delivery, OTT platforms and services can create sustainable revenue streams and have a sustainable and profitable OTT offering.
[This article is written by Benjamin Pius (Publisher @ BMA) as part of the forthcoming OTT Content Streaming And Distribution Summit 2025 on 18 – 19 February 2025 in Cape Town, South Africa. Learn more about the event here]
