AVOD — Ad-Supported Video on Demand
Scale your audience with free access and monetise through advertising
What is AVOD?
AVOD (Ad-Supported Video on Demand) is the Peacock/Tubi model — viewers watch for free and ads fund the service.
Best for
- Large top-of-funnel reach where free removes the conversion barrier
- Content with broad appeal and high completion rates
- Services where CTV distribution matters (Pluto, Tubi, Samsung TV+)
Common pitfalls
Ad frequency too high — aggressive ad loads hurt watch time. Start with 4–6 minutes of ads per hour and measure completion rates before increasing.
Measurement consent gaps — GDPR and state privacy laws require proper consent for personalised ads. Get your CMP set up correctly from day one.
Fill rate variability — programmatic fill rate fluctuates (especially Q1). Model conservatively and add direct sales when volume justifies it.
Ad stack decisions
AVOD requires an early decision on your ad architecture:
- SSAI vs CSAI — see the Ad Tech section for a full breakdown
- Ad server — Google Ad Manager is the dominant choice at scale
- SSP connections — Magnite, SpotX (Magnite), FreeWheel for premium
- Measurement — IAB Tech Lab VAST/SIMID compliance
Starter structure (MVP)
- Free tier with 4–6 min/hr ad load
- Optional ad-lite subscription (lower price, fewer ads)
- Frequency caps (no viewer sees the same ad >3x/session)
What to instrument
- Ad impressions per hour watched
- Completion rate by ad position (pre/mid/post)
- eCPM and fill rate
- Watch time per viewer (your ad inventory supply)
Planning an AVOD launch?
Book a monetization call.