advertising revenue management

Industry Overview

The subscription video on demand (SVoD) service revenue in India is expected to grow at a robust compounded annual growth rate (CAGR) of 15.9 percent from $0.9 billion (€0.768bn) in 2020 to $1.9 billion in 2025 in line with increasing demand for various over-the-top (OTT) video service platforms in the country, according to data and analytics company GlobalData.*

*Source: Advanced Television

Think of content revenue as a box of doughnuts. Consumers are spoilt for choice and there are diverse models of monetisation. AVoD, SVoD, TVoD, Video on Demand, Catch-Up TV are just a few examples of revenue avenues for a publisher. Managing the profitability of content and monetising advertising in an increasingly nebulous market is the need of the hour. 

How do content companies get their pricing right, what parameters are used to leverage ROI, what campaigns are run and promoted? These are mission-critical decisions that drive content consumption and revenue for a publisher.

“How much are you willing to spend” is a question that advertisers, brands, and publishers grapple with every single day. Once a baseline has been established, there are numerous ways to build data models to enhance marketing spends. Often, these models do not always account for a content cost-benefit analysis or factor in the acquisition spends.

Publishers must have dynamic pricing models that allow for multiple target segments – how do they price and for whom?

One View Of Revenue

The publisher universe primarily has two distinct models of content monetisation – ad led revenue (Advertising-based Video on Demand or AVOD and subscriptions (Subscription-based Video on Demand or SVOD).

Without a doubt, the entire lifecycle of producing, distributing, licensing, and selling content is an expensive affair. Yet, content is still one of the key differentiators that drives traffic and revenue to a content platform. Most publishers in today’s hyper-convergent world opt for a hybrid business strategy that straddles both AVOD and SVOD, to find the best balance within target audiences and market segments.

Win With Voiro

Voiro is the source of truth for all revenue intelligence across all demand channels allowing publishers to leverage their data and grow their revenue across subscriptions, direct ad sales, indirect or programmatic channels.

Subscription revenue is usually a marketing-centric parameter, with achieved revenue (m/m,q/q, and y/y) viewed in the overall subscription values by region, price points, and audience target groups. 

Ad revenue is tracked in real-time, with constant campaign optimisation, while subscription revenues are usually tracked at a lower frequency with context to growth.

  1. Voiro displays, forecasts and optimises advertising revenue.
  2. Voiro integrates into any subscription tech stack and creates dashboards that can be viewed in line with revenue – both through direct ad sales and indirect, programmatic partners.

It is mission-critical for a Chief Business Officer to have a holistic view of all these sources of revenue to enhance business growth.

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