Well, you might have been probably looking for new ways to grow your brand, and the video piqued your interest. That’s great! It is a powerful medium without which the world cannot function. But how do you know which method is best for monetizing your videos?
All you have to do is – invest time and pick the best monetization strategy to reap short and long-term benefits and high profitability.
Before you make a final choice, let’s look at the most successful video monetization strategies available today. In this blog, we’ll discuss how they work, how they can help you make money and the upsides and downsides of each. We’ll also take a look at hybrid options and how they can help your company grow even more.
Before we begin, here’s a statistic you’ll want to check out:
- In 2019, more than 2.6 billion people watched online videos. By 2023, that number is expected to reach 3.1 billion.
- By 2025, the online video industry is expected to be worth $124.6 billion.
- According to experts, the total value of global video subscriptions is expected to reach $338 million this year.
- By 2023, ad revenue from video streaming is expected to reach $129 billion.
- The total revenue for the video streaming app industry was $72.2 billion in 2021 and is expected to reach $115 billion by 2026.
Without further ado, let us discuss some best monetization strategies that can help you
dominate the market. Stay tuned until the end, and you’ll gain valuable insights in a short time.
So, What Is Video Monetization?
Video monetization is the use of strategies to generate revenue from video content. It applies to online live streaming and video on demand (VOD).
Video monetization is a powerful tool for brands and online creators because it allows them to get profit from their video creations. You can, however, now get paid by providing access to the following:
- Access to your audience
- Access to your video content
- Access to your platform
Many people have carved out a niche for themselves using their smartphones to record and share videos. You can create videos about anything, from cat care and gardening to travel, technical how-to, and daily vlogs. Simply start creating and editing videos, and everything else will fall into place.
In this on-demand video world, you can easily carve your path to success; all you have to do is look for the best online video monetization strategy and video monetization model. Let’s go deeper now!
Step-By-Step Guide to Choose the Right Video Monetization Strategy
The following are the steps you should take to determine the best pricing and monetization strategy for your brand:
Step 1: Know Your Competitors and Audience
Research is the core of all successful business models. To determine whether your idea will succeed, you must first identify your competitors, what they offer (products and prices), how they promote it, the marketing channels they utilize, and why users choose them.
Begin with primary research to identify your ideal or target customer. Speak with people to determine what they want from a channel like yours. For instance, ask whether you should create content as a series with episodes or a one-time purchase for a premium.
Step 2: Set Realistic Goals
Setting realistic goals isn’t always exciting. Entrepreneurs, in general, are wired to think big and be daring. However, when setting video monetization platform goals, you will need to focus on your ambition. To make your vision a reality, you should back it up with adequate planning and resources. Choosing a TVOD model, for instance, entails developing a product with broad enough appeal to sell well each month.
Going the SVOD route would imply creating more content for people to enjoy each month, thus justifying the monthly subscription fee. Also, consider how much revenue you intend to generate and how you intend to get there. Furthermore, take into account what percentage of your current business revenue your new video channel will generate. Based on your monetization model, how soon do you think you’ll reach this goal?
Step 3: Select Your Monetization Model
Next, you should choose the monetization option that provides you with the highest returns based on your content and audience.
AVOD
AVOD stands for “Advertising Video-on-Demand.” Ads shown before and during videos generate revenue for the AVOD model.
Ads are shown to viewers alongside subscription-free content in this ad monetization strategy. While users can access and watch video content on your platform for free, you earn money from advertisers.
SVOD
One of the most profitable and effective monetization strategies for video content creators and producers is SVOD (subscription video on demand).
As the name implies, subscription video on demand (SVOD) is a video monetization strategy in which you offer users subscriptions to your platforms for a monthly or annual fee. Paid subscriptions are popular among viewers because they allow them to watch ad-free content on the OTT website and app indefinitely. Furthermore, having a subscription to any video streaming platform allows them to use it on any device of their preference.
TVOD
In a TVOD or transactional VOD strategy, you can charge users pay-per-view. Users only pay for what they want to watch, rather than a monthly or annual subscription.
TVOD works to increase traffic and viewership on your platform because users are not required to sign up for a subscription immediately. They can test out your content and service quality for a small one-time fee.
Hybrid
You can also create a hybrid OTT channel to monetize your video content uniquely. This channel is essentially an online platform where you can use all the video ad monetization strategies mentioned above to maximize your revenues. The best option is to use customized hybrid channels because they not only support your monetization options but also provide complete control over your video streaming platform.
Step 4: Choose the Video Monetization Platform
Once you’ve decided to start monetizing content, the next step is to find an online video provider with whom to collaborate. No matter which route you choose to monetize video, you’ll need to find the right online video platform to help you achieve your specific objectives.
The following characteristics of an online video platform will help support your video monetization strategy.
Integrated Paywall: For a streamless monetization experience, select a platform with an integrated video paywall.
Powerful Subscription Management System: A subscription management system will help you in keeping track of your subscribers.
Live Event Support: Live events can help you connect with your audience while also earning money. Choosing an online video platform that supports live streaming opens the door to new possibilities with this type of streaming.
Step 5: Build Your Offer
Creating immense value has long been recognized as an excellent way to grow brands. It also contributes to a higher ROI for marketing spending. With video monetization models, it is possible to create appealing offers using a wide range of content, including live streaming, free trials, and freemium offers.
Summing Up
To sum it up, video can help you grow your brand, but you must choose the best option for your business. As you plan and build your video monetization strategy for maximum growth, keep your audience and business objectives in mind.
