Home
Blog
Authors
Dan Burcaw

Dan Burcaw is Co-Founder & CEO of Nami ML. He built a top mobile app development agency responsible for some of the most elite apps on the App Store and then found himself inside the mobile marketing industry after selling his last company to Oracle.

Latest articles by
Dan Burcaw
Written by
Dan Burcaw
19 Nov

OTT Monetisation: Strategies to Maximise Revenue in 2024

As streaming platforms continue to dominate the media landscape, OTT monetisation has become a central focus for content creators and advertisers alike. OTT services offer an on-demand, flexible viewing experience, and monetising this content effectively is crucial for sustaining growth. Whether you’re offering free content supported by ads or premium subscriptions, finding the right monetisation model can help unlock new revenue streams and ensure long-term success.

What is OTT Monetisation?

OTT monetisation refers to the various methods content creators and distributors use to generate revenue from their Over-the-Top (OTT) platforms. These platforms deliver video content over the internet, bypassing traditional TV and cable services. OTT monetisation allows content providers to profit from video streaming services by leveraging a combination of advertising, subscriptions, and transactional models.

The monetisation approach depends on the platform's audience, content type, and goals. For example, some platforms use a subscription-based model (SVOD), where users pay for access to content, while others rely on advertising-based models (AVOD), where ads are shown to viewers in exchange for free access.

👉Read More: The Power of CTV Advertising

Key OTT Monetisation Models for 2024

There are several monetisation models that OTT platforms can adopt, and the right choice depends on the content, audience, and business objectives. Here are the most popular models:

Subscription Video on Demand (SVOD)

In the SVOD model, viewers pay a recurring fee to access content. This is the most common monetisation method for platforms offering premium, exclusive, or high-quality content. Examples include services like Netflix, Disney+, and HBO Max. This model provides stable and predictable revenue, especially if you have a loyal subscriber base.

Advertising Video on Demand (AVOD)

AVOD allows platforms to offer free content in exchange for ad impressions. Ads are typically displayed at various points during the content, such as pre-roll, mid-roll, or post-roll. This model is often used by platforms with large audiences but no paywall, such as YouTube and Peacock. AVOD can be very lucrative if you have high viewer engagement and can target specific demographic groups effectively.

Transactional Video on Demand (TVOD)

With TVOD, users pay for each piece of content they view, such as purchasing or renting movies or episodes. This model works well for exclusive or newly-released content that users are willing to pay a one-time fee to access. TVOD is often used by platforms like Amazon Prime Video for rentals and purchases.

Hybrid Models

Many OTT platforms combine SVOD and AVOD (SVOD+AVOD), offering users the option of a subscription that is ad-free or a free tier that includes ads. This flexibility allows platforms to cater to different viewer preferences and maximise monetisation opportunities. Hybrid models can boost user acquisition and retention by offering multiple options based on individual preferences.

Choosing the Right OTT Monetisation Strategy

Selecting the most suitable OTT monetisation strategy depends on several factors, including the type of content, audience engagement, and business objectives. Here are some key considerations:

Audience Type

If your audience consists of highly engaged users who prefer ad-free experiences, SVOD may be the best approach. However, if your platform has a large, diverse audience that prefers free access to content, AVOD can help you maximise revenue through ads. A hybrid model can cater to both paid subscribers and free viewers.

Content Type

The type of content you offer will also influence the monetisation model. High-value, exclusive content like original shows and films may work best with SVOD. On the other hand, general or ad-supported content works well for the AVOD model, as you can generate significant revenue from large numbers of viewers.

Long-Term Goals

Consider your platform's long-term goals when selecting a monetisation strategy. If your goal is to generate immediate revenue, AVOD may be ideal. If you are looking to build a sustainable, long-term subscriber base, SVOD will help generate steady income. Hybrid models allow you to balance short-term ad revenue with long-term subscription growth.

How to Optimise Your OTT Ad Inventory

Efficient ad inventory management is essential to maximising OTT monetisation through advertising. By optimising ad placements, you can increase ad revenue without compromising the viewer experience. Here’s how to do it:

Dynamic Ad Insertion (DAI)

DAI allows ads to be inserted dynamically based on user behavior, location, or device type. This improves ad relevancy, reduces wasted impressions, and maximises ad revenue by targeting viewers more accurately.

Programmatic Advertising

With programmatic advertising, ads are sold and placed automatically using data and algorithms. This allows for better ad targeting and more effective use of your ad inventory. By leveraging programmatic platforms, you can optimise your OTT ads for maximum reach and revenue.

Frequency Capping

Frequency capping limits how often a viewer sees the same ad, reducing ad fatigue and preventing users from feeling overwhelmed. Effective frequency management can improve the viewer experience and increase ad effectiveness.

👉Read More: Creating a Winning CTV Strategy: Monetizing Your Content

To get the most out of your OTT monetisation strategy, follow these best practices:

Leverage Data for Targeting

Use viewer data to tailor ads to specific audience segments. The more relevant the ads, the higher the chances of engagement and conversions. Leverage demographic, behavioral, and geographic data to ensure you are serving the most relevant ads to each viewer.

Offer Multiple Subscription Tiers

Offering different subscription plans allows users to choose the level of access that best suits their preferences and budget. Consider offering both SVOD and AVOD tiers, giving users the option of paying for an ad-free experience or watching free content with ads.

Focus on Content Quality

Premium, high-quality content is essential for both attracting new viewers and retaining existing ones. Focus on creating engaging, unique content that aligns with your audience’s interests to drive long-term subscriber growth.

Measuring Success in OTT Monetisation

To effectively measure the success of your OTT monetisation efforts, focus on key performance indicators (KPIs) such as:

Revenue Per User (ARPU)

ARPU measures the average revenue generated per user, allowing you to assess the profitability of your SVOD, AVOD, or hybrid models.

View-Through Rate (VTR)

The VTR measures how many viewers watch the entire ad. This metric is critical in assessing the engagement and effectiveness of AVOD ads.

Subscriber Growth

Tracking the number of new and retained subscribers helps determine the effectiveness of your SVOD strategy. Sustained growth is a strong indicator that your content is resonating with your audience.

Ad Engagement Rates

Monitor how viewers interact with your ads, including click-through rates (CTR), engagement with interactive ads, and conversion rates. These metrics provide valuable insights into the success of your advertising campaigns.

👉Read More: What is SVOD (Subscription Video on Demand)? A Comprehensive Guide

Conclusion

As OTT platforms continue to evolve in 2024, OTT monetisation remains a key focus for content providers and advertisers. By adopting the right monetisation models, optimising ad inventory, and following best practices, you can effectively maximise revenue from your OTT platform. Whether through SVOD, AVOD, or hybrid approaches, the key to success lies in understanding your audience, offering engaging content, and using data-driven strategies to optimise your monetisation efforts.

By staying ahead of trends and leveraging advanced ad solutions, you can turn your OTT platform into a highly profitable venture that drives both short-term gains and long-term growth.

FAQs

What are the main OTT monetisation models?

The main OTT monetisation models include SVOD (subscription-based), AVOD (ad-supported), and TVOD (pay-per-view). Many platforms also use hybrid models to combine these methods.

How do I optimise my OTT ad inventory?

Optimise your OTT ad inventory by using dynamic ad insertion (DAI), programmatic advertising, and frequency capping. These strategies help ensure your ads reach the right audience without overwhelming viewers.

What’s the difference between SVOD and AVOD?

SVOD (Subscription Video on Demand) generates revenue through subscriptions, offering ad-free content. AVOD (Advertising Video on Demand) generates revenue by showing ads to viewers who access content for free.

How can I measure success in OTT monetisation?

Measure success in OTT monetisation by tracking metrics like revenue per user (ARPU), view-through rate (VTR), subscriber growth, and ad engagement rates. These KPIs help gauge the effectiveness of your monetisation strategy.

Written by
Dan Burcaw
19 Nov

[FIX] We’ve detected this app uses an unsupported version of play billing

If you've received this Play Console message: "We've detected this app uses an unsupported version of play billing". Here's the fix.

If you received the following message from the Google Play Console, you are not alone:

We’ve detected this app uses an unsupported version of play billing

Chances are your app is on an unsupported version of Play Billing. Google announced that by November 1, 2021 all new apps and updates to existing apps must use Billing Library version 3 or newer.

Check import dependencies for Play Billing Library version 3 or newer

Check your project’s build.gradle file. Apps must import Play Billing Library version 3.0.0 or higher. Please note, these dependencies would only show up for APKs that require the permission com.android.vending.BILLING.

Make sure AndroidManifest.xml contains the Play Billing version entry

If you are on the latest Play Billing Library but still see the message, you will need to check your AndroidManifest.xml.  Ensure it contains an entry for com.google.android.play.billingclient.version

According to Google, the entry might not be present if the manifest attribute is being dropped during manifest merging. You can check your manifest merge settings.

👉Read more: Set Up IAP Google Play Android App

Upgrading from Play Billing Library V1/AIDL

If you are on Play Billing Library V1 / AIDL, Google has a migration guide for upgrading to Play Billing Library version 3. In short, there are major code changes you will need to make to your project.

Not your last “unsupported version of play billing” message

Google regularly introduces new functionality and APIs as part of the Play Billing Library. In fact, upgrading to version 3 won’t mean you’ll never again see the message about an unsupported version of play billing.

You can future proof your Play Billing implementation.  With Nami, we manage the Play Billing implementation and you get to focus on your app. No server-side code is required and the client SDK is extremely easy to adopt. Our generous free tier provides reasonable limits and lots of features not found in homegrown implementations.


       

       if(window.strchfSettings === undefined) window.strchfSettings = {};
   window.strchfSettings.stats = {url: "https://nami.storychief.io/en/quick-fix-unsupported-version-google-play-billing?id=1390215239&type=26",title: "[FIX] We’ve detected this app uses an unsupported version of play billing",id: "51b60849-ff21-4408-b48f-9543da3cae59"};
           (function(d, s, id) {
     var js, sjs = d.getElementsByTagName(s)[0];
     if (d.getElementById(id)) {window.strchf.update(); return;}
     js = d.createElement(s); js.id = id;
     js.src = "https://d37oebn0w9ir6a.cloudfront.net/scripts/v0/strchf.js";
     js.async = true;
     sjs.parentNode.insertBefore(js, sjs);
   }(document, 'script', 'storychief-jssdk'))
   

👉Read more: Play Billing Deferred Proration Mode
   

Written by
Dan Burcaw
19 Nov

Your App Business is Exploding or Imploding: And the Opportunity is…

If you are an app developer or company with mobile apps and are experiencing unprecedented traffic, plummeting engagement, or uncertain revenue what do you do?

I worked at Apple during the 2008 financial crisis. Steve Jobs made it crystal clear to employees, customers, and investors that Apple would invest through the downturn. Instead of layoffs, Apple increased R&D spending and created a robust product pipeline for the eventual economic recovery.

History defines memorable leaders by their ability to:

  • Manage the current crisis
  • Prepare for the future

It’s that second one that creates a truly historic leader, who has the ability to think strategically in the midst of a chaotic, fast changing environment.

Invest Through This Historic Moment

We are working with a diverse group of companies managing the crisis while prepping their future. Let’s explore three examples:

Company #1: Unprecedented Traffic

Once-in-a lifetime traffic generated by their product which empowers people who work from home. Unlike other companies, they are managing the current demand, allowing for strategic planning for the eventual economic recovery.Unique data about the tsunami of users, provide insights why their users register, convert, and churn, so they can optimize the customer experience and boost revenue.

Company #2:  Plummeting Engagement

A media company finds itself suddenly with a subscription product in stasis, because it is built around live audiences. Even though engagement is down, it’s not zero. They too realize that they have an opportunity to use this moment to gather new insight and learn how their business is impacted by a Black Swan event.

Company #3: Entering the Unknown

A new streaming service is preparing to launch. While managing the day-to-day priorities to get to market, their strategic thinking has already paid off. They are striking the right balance between what to build and what to buy externally. Many diverse tools are needed for their arsenal to help adapt and iterate quickly as they launch in a distressed economy.

👉Read more: 50 Mobile App Growth Hacking Tactics You Can Try Today

The Cost of Doing Nothing

Imagine if Apple had pulled back on R&D in 2008 along with layoffs. It’s hard to know for sure, but it’s not difficult to imagine a few years of stagnate products giving competitors an opportunity to catch up.

As a friend of mine often says, hope is not a strategy. As responsible leaders, we have a duty to think strategically and act decisively so we can help our companies rebound and our teams prosper in a stronger position than before.

Are you going to join the ranks of the smart companies who are investing through the moment or….becoming stuck by the moment?

We’re Ready to Help

If you are an app developer or company with mobile apps and are experiencing unprecedented traffic, plummeting engagement, or uncertain revenue…we are ready to help.

We have pioneered a solution that deploys Machine Learning (ML) models to increase subscriptions conversions, boost app revenue, and reduce churn. The models run on-device, so they are tailored for your app’s unique usage patterns,  optimize your experience in real-time, and protect end user privacy.

If your traffic is high, Nami’s algorithms for iOS and Android can help accelerate the trends you are already seeing in engaging, converting, and retaining paying customers in your app.

If engagement is dropping, Nami can help you understand the key engagement signals that show a user is about to cancel their subscription so you can re-engage them to reduce churn in your app.

If you’re not onboarding many new users right now, Nami can still find cohorts that are interested in your product. Nami provides data and insights to help you figure out who those users are and use our ML algorithms to help you convert them into paying customers.

At a time where we’re all focused on our family and community, we make it easy to get started quickly. Our Nami SDK drops in and starts passively gathering anonymized training data. This means Nami is learning for your app while you focus on what’s most important.

👉Read more: App Growth Hacking Techniques for the Holidays

A Final Thought…Support the Indies!

Indie developers are having an especially challenging time right now. I know many of us are trying to support our favorite coffee shops, restaurants, and other small businesses. I’d ask that you consider also supporting one of the multitude of indie app developers who depend on the app economy.

Written by
Dan Burcaw
18 Nov

What is OTT? A Comprehensive Guide to Over-the-Top Video Advertising

The rise of digital streaming platforms has transformed the way we consume content. One of the most significant developments in this space is OTT (Over-the-Top) content delivery. OTT refers to content streamed directly over the internet, bypassing traditional broadcast methods like cable or satellite TV. In this guide, we’ll explore what OTT is, how it works, and why it’s become a key player in the modern advertising landscape.

What is OTT?

OTT (Over-the-Top) refers to the delivery of video, audio, and other media content via the internet, bypassing traditional cable, satellite, or broadcast services. Essentially, it involves streaming services that provide content directly to viewers through apps or websites. This content is available on a variety of internet-connected devices, such as smartphones, tablets, smart TVs, and computers.

OTT services allow consumers to access their favorite content on-demand, giving them more control over when and where they watch. Examples of popular OTT platforms include video streaming services like Netflix, YouTube, and Hulu. In addition to video, OTT can also include audio content, such as streaming music services like Spotify or podcast platforms.

👉Read More: The Power of CTV Advertising

How OTT Works

OTT operates by delivering content directly over the internet through a broadband connection. Unlike traditional TV services that require a cable or satellite subscription, OTT platforms work by using an app or website to stream content. These platforms may offer content through subscriptions (SVOD), ads (AVOD), or a combination of both.

  • SVOD (Subscription Video on Demand): Viewers pay a regular subscription fee for unlimited access to content, such as Netflix or Disney+.
  • AVOD (Advertising Video on Demand): Content is free to access, but viewers watch ads in exchange, like on YouTube or Peacock's free tier.
  • TVOD (Transactional Video on Demand): Viewers pay for individual content, like renting or buying movies on platforms like Amazon Prime Video.

OTT services can be accessed on a variety of devices, from traditional smart TVs to mobile devices, providing viewers with maximum flexibility and ease of access.

OTT vs. Traditional TV: Key Differences

The key difference between OTT and traditional TV lies in the method of content delivery:

Device Access

  • OTT: Delivered through internet-connected devices like smartphones, tablets, laptops, and smart TVs.
  • Traditional TV: Delivered through cable or satellite TV connections to a TV screen, often requiring a physical cable box or antenna.

Flexibility

  • OTT: Content is available on-demand, allowing users to watch what they want, when they want, without any restrictions on time slots or channels.
  • Traditional TV: Viewers have to tune in at scheduled times to watch specific programs.

Cost Structure

  • OTT: Offers multiple monetization models including subscriptions, advertising, or pay-per-view.
  • Traditional TV: Usually requires a monthly subscription fee or is bundled with other services.

This flexibility in access, timing, and cost structure has made OTT increasingly popular, especially among younger audiences who prefer the on-demand, ad-free experience.

The Benefits of OTT Content Delivery

OTT offers several advantages over traditional broadcasting methods, both for consumers and advertisers:

Accessibility

One of the biggest advantages of OTT is that it allows viewers to access content on a variety of internet-enabled devices. This flexibility enables users to watch their favorite content from home or on-the-go, as long as they have an internet connection.

Personalization

OTT platforms often use advanced algorithms to personalize content recommendations based on a user’s viewing history, preferences, and even demographic data. This personalization enhances user satisfaction and engagement.

Lower Costs

For consumers, OTT services often provide a more affordable alternative to traditional cable packages. By subscribing to specific streaming services, users can pay only for the content they want to watch without the high costs associated with cable bundles.

Content Variety

OTT platforms provide access to a wide range of content, including exclusive shows, movies, live events, and niche programming that may not be available on traditional TV channels.

👉Read More: OTT Monetisation: Strategies to Maximise Revenue in 2024

OTT Advertising: What You Need to Know

OTT advertising is the practice of serving video ads on OTT platforms. This type of advertising allows brands to reach viewers directly on the devices they use to consume content. There are two main types of OTT ads:

Pre-Roll, Mid-Roll, and Post-Roll Ads

These are video ads shown before, during, or after streaming content. Pre-roll ads are the most common, while mid-roll ads often appear during natural breaks in content, similar to traditional TV commercial breaks.

Interactive and Targeted Ads

With OTT advertising, it’s possible to serve highly targeted ads based on user data. Ads can be tailored to specific demographics, viewing habits, or even past interactions with the platform. This level of targeting can significantly improve ad relevance and increase viewer engagement.

The advantage of OTT advertising over traditional TV ads is its ability to reach viewers across a variety of platforms and devices, with the added benefit of tracking and optimizing ad performance through real-time data analytics.

Measuring Success in OTT Campaigns

To gauge the success of OTT advertising campaigns, it’s important to track key metrics that align with campaign objectives. Here are a few critical metrics to monitor:

  • View-Through Rate (VTR): Measures how many viewers watch an ad to completion.
  • Click-Through Rate (CTR): Tracks the percentage of viewers who click on an ad’s CTA (Call-to-Action).
  • Engagement Metrics: Includes likes, shares, comments, or other interactions with the content after viewing the ad.
  • Conversion Rates: Tracks how many viewers took the desired action, such as signing up for a service or making a purchase, after watching an OTT ad.

By analyzing these metrics, marketers can adjust their strategy to optimize their campaigns and maximize ROI.

👉Read More: SVOD vs AVOD: Understanding the Key Differences in Video on Demand Models

Conclusion

OTT has fundamentally changed the way content is delivered and consumed. Offering flexibility, lower costs, and a more personalized viewing experience, OTT has become the preferred method of content consumption for many viewers. For advertisers, OTT advertising presents a powerful opportunity to target specific audiences, deliver relevant messages, and measure campaign effectiveness with real-time analytics.

As digital media consumption continues to rise, OTT’s influence will only grow, making it essential for brands to develop and optimize their OTT advertising strategies to stay ahead in a competitive market.

FAQs

What’s the difference between OTT and traditional TV?

OTT refers to content delivered over the internet, accessible on devices like smartphones, tablets, and smart TVs, while traditional TV relies on cable or satellite services. OTT offers on-demand content, while traditional TV has scheduled programming.

Can I advertise on OTT platforms?

Yes, OTT advertising allows brands to serve video ads on streaming services and platforms. These ads can be targeted based on user data, ensuring they reach the most relevant audience.

How does OTT compare to CTV?

OTT is broader and includes content delivered over the internet on any device, while CTV specifically refers to content delivered to internet-connected TVs. CTV is a subset of OTT.

Why is OTT advertising more effective than traditional TV ads?

OTT advertising is more effective due to its ability to target specific audiences, track real-time engagement, and offer personalized content, unlike traditional TV ads, which often cast a wider, less-targeted net.

Written by
Dan Burcaw
17 Nov

CTV Advertising Guide: Key Strategies for Effective Connected TV Campaigns

Connected TV (CTV) advertising has become a crucial channel for advertisers aiming to reach an engaged audience through streaming platforms and internet-connected devices. With the shift from traditional television to on-demand streaming services, CTV ads offer brands the chance to connect with viewers in new, dynamic ways. But what is CTV advertising and how can businesses harness its power to achieve better results?

What is Connected TV Advertising?

Connected TV (CTV) advertising refers to digital advertisements that are displayed on TV screens through internet-connected devices such as smart TVs, set-top boxes, and streaming devices like Roku or Apple TV. These ads are delivered through streaming platforms, unlike traditional TV ads, which are broadcasted through cable or satellite networks. CTV ads offer a more interactive and targeted advertising experience.

With CTV, marketers can take advantage of data-driven targeting, reaching viewers based on specific criteria like interests, location, and viewing habits. This makes CTV advertising a powerful tool for connecting with a highly engaged audience.

👉Read More: Creating a Winning CTV Strategy: Monetizing Your Content

The Shift to Streaming: Why CTV Advertising Matters

The rise of streaming services has dramatically changed how people consume television content. As traditional cable TV usage declines, streaming platforms like Netflix, Hulu, and YouTube continue to grow in popularity. By 2024, it is expected that streaming viewership will surpass traditional cable TV for good.

This shift in viewer behavior presents significant opportunities for advertisers. With CTV advertising, businesses can now reach consumers who prefer on-demand content. Not only does this enable brands to meet audiences where they are, but it also allows for highly targeted campaigns that drive better results.

Key Benefits of CTV Advertising

CTV ads come with a wide range of benefits that make them an attractive option for modern marketers:

Advanced Targeting

With CTV marketing, advertisers can leverage data insights to precisely target specific demographics based on factors like age, gender, location, and viewing habits. This level of granularity ensures that your ads reach the right people at the right time.

Enhanced Engagement

Viewers of CTV ads tend to be more engaged than traditional TV viewers. Because streaming services offer content on-demand, people who watch these services are actively choosing their programming, which increases the likelihood of them interacting with your ads.

Measurable Performance

Unlike traditional television, CTV ads offer detailed analytics that allow advertisers to track campaign performance in real-time. This includes metrics like view-through rates, click-through rates, and conversion rates, enabling you to make data-driven decisions and optimize campaigns on the fly.

Cost-Effectiveness

Compared to traditional TV ads, CTV advertising is often more cost-effective, allowing advertisers of all sizes to reach a broad audience without exceeding their budget. The ability to target specific viewers also increases the ROI, making it a worthwhile investment.

How CTV Ads Work: Technology Behind the Scenes

The power of CTV advertising lies in the technology that enables it:

Ad Placement

Ads are delivered to viewers through internet-connected streaming platforms, and can appear during content breaks or be integrated directly into the streaming content. This method of delivery allows for flexible ad placements that can be customized based on viewer behavior.

Targeting Capabilities

With CTV ads, targeting is done based on detailed data analysis. Advertisers use information like viewers' demographics, past viewing behavior, and even interactions with previous ads to serve the most relevant content to each individual.

Real-Time Analytics

One of the most significant advantages of CTV marketing is the ability to track ad performance in real-time. With the right tools, advertisers can assess how their audience is responding to their ads and make immediate adjustments to improve effectiveness.

👉Read More: OTT vs. CTV Advertising: What's the Difference & Examples

Crafting Effective CTV Campaigns

To maximize the impact of your CTV ads, it's important to develop a clear and structured approach to campaign creation:

Define Clear Objectives

Before you begin, it's essential to have clear objectives for your campaign. Are you trying to increase brand awareness? Drive conversions? Establish your goals early to guide your creative direction and measurement strategies.

Know Your Audience

Understanding your target audience is key to developing an effective CTV marketing strategy. Leverage available data to gain insights into the preferences and behaviors of your viewers, allowing you to create personalized, relevant campaigns.

High-Quality Content

Content is still king in CTV advertising. Invest in creating high-quality, visually appealing ads that resonate with your target audience. The more engaging your content, the more likely viewers are to interact with your brand.

Include a Strong Call to Action

Each CTV ad should have a clear, actionable call to action (CTA). Whether you want viewers to visit your website, download an app, or make a purchase, your CTA should be easy to understand and impossible to ignore.

Best Practices for CTV Advertising

To ensure your CTV marketing campaigns are effective, follow these best practices:

Consistent Branding

Make sure your branding is consistent across all ads to help build recognition and trust with your audience. This consistency will reinforce your brand's message and make it easier for viewers to remember.

Frequency Management

Avoid bombarding viewers with the same ad over and over. Too many ads can lead to ad fatigue and cause viewers to tune out. Set frequency caps to ensure your ads are seen at the right intervals.

Cross-Platform Integration

Consider integrating CTV ads with other digital marketing strategies, such as social media and mobile advertising. This cross-channel approach will help create a cohesive brand experience for your audience.

Measuring Campaign Success: Key Metrics

One of the key advantages of CTV advertising is the ability to measure success with precision:

View-Through and Click-Through Rates

These are two of the most important metrics for tracking the effectiveness of CTV ads. View-through rate (VTR) measures how many viewers watched your ad in full, while click-through rate (CTR) tells you how many clicked on your CTA.

Conversion Tracking

It’s essential to track how many viewers take the desired action after watching your ad. Whether it’s signing up for a newsletter or completing a purchase, conversion tracking lets you assess the true impact of your campaign.

ROI

Ultimately, the goal of any advertising campaign is to generate a return on investment (ROI). By tracking key metrics and making data-driven decisions, you can optimize your campaigns to achieve the highest possible ROI.

Overcoming Common Issues in CTV Advertising

While CTV advertising offers many benefits, it does come with its difficulties:

Ad Fatigue

If the same viewers are exposed to your ads too many times, they may become fatigued and less likely to engage. It’s essential to manage frequency and make sure viewers aren’t overwhelmed by repetition.

Device Compatibility

The fragmentation of the CTV ecosystem means that ads need to be optimized for different devices and platforms, such as Roku, Apple TV, and smart TVs. Ensuring compatibility across these devices can be a challenge but is necessary for maximizing reach.

Data Privacy

As with any form of digital advertising, it's crucial to comply with data privacy regulations like GDPR and CCPA when collecting and using customer data for targeting purposes. Make sure your campaigns respect user privacy to maintain trust.

👉Read More: What is OTT? A Comprehensive Guide to Over-the-Top Video Advertising

Conclusion

CTV advertising offers a powerful and cost-effective way to engage viewers in today’s streaming-driven world. By leveraging the unique capabilities of CTV marketing, advertisers can craft targeted campaigns that resonate with their audience and deliver measurable results.

As streaming continues to replace traditional television, CTV ads will play an increasingly important role in digital marketing.

Start optimizing your CTV advertising strategy today and stay ahead in this evolving landscape.

FAQs

What are the main benefits of CTV advertising?

CTV advertising offers key benefits, including advanced targeting based on viewer data, higher engagement rates due to on-demand content, and measurable performance with real-time analytics. These factors allow advertisers to deliver relevant ads to a specific audience and optimize campaigns effectively.

How can I optimize ad placement in CTV campaigns?

Optimizing CTV ad placement involves using data insights to determine the best timing for ads, ensuring they don’t disrupt the viewer experience. Experimenting with different ad formats, such as pre-roll, mid-roll, and post-roll ads, can also improve engagement and prevent ad fatigue.

What metrics should I track for a successful CTV campaign?

Important metrics for CTV campaigns include view-through rate (VTR), which shows how many viewers watched the ad completely, click-through rate (CTR) to measure engagement, and conversion rate, which tracks the actions viewers take after seeing the ad, such as making a purchase or signing up.

How can I ensure my CTV ads are effective?

To make your CTV ads effective, focus on creating high-quality content that resonates with your target audience, use personalized targeting based on viewer behavior, and include a clear call-to-action (CTA) to guide viewers towards the next step, such as visiting a website or making a purchase.

Written by
Dan Burcaw
16 Nov

Order-to-Cash (O2C): Definition, Process & Optimization Strategies

Businesses need to master the order-to-cash (O2C) cycle to stay competitive in the bustling world of business. This process, stretching from order entry to revenue recognition, is more than just a financial transaction – it's the backbone of your company's financial health and customer relationships. In this article, we dive into why perfecting your O2C process can revolutionize your business and keep you ahead in the market.The order-to-cash process might sound complex, but understanding it is essential for anyone aiming to boost operational efficiency and cash flow. By dissecting each step, we'll reveal how streamlining can lead to quicker billing cycles, happier customers, and a stronger bottom line. 

Key Takeaways

  • Streamlined Process Improves Efficiency: Optimizing every stage of the order-to-cash (O2C) process, from order management to invoicing and payment collection, greatly enhances operational efficiency and reduces errors.
  • Enhanced Customer Satisfaction: A well-managed O2C process ensures faster order fulfillment and billing cycles that boost overall customer satisfaction and loyalty.
  • Critical for Financial Health: Efficiently managing the O2C process accelerates cash inflows, improving your organization's liquidity and ability to meet financial obligations and invest in growth opportunities.
  • Technological Advancements Are Key: Using automation and advanced technologies like AI and ERP systems can simplify your order-to-cash process. These tools cut down on manual errors and give you valuable insights to make better decisions.
  • Challenges Need Strategic Solutions: Dealing with issues like fragmented data, compliance hurdles, and credit risk assessment is a must for a smooth order-to-cash process. With the right technology and up-to-date practices, you can overcome these challenges and keep everything running seamlessly.
  • Regulatory Compliance: Ensuring accuracy in revenue recognition and compliance with financial regulations is crucial, and can be achieved through careful management of the order-to-cash process.

👉Read more: Subscription App Analytics Definitive Guide

What is the order-to-cash process? Definition

The order-to-cash (O2C) process is the complete sequence of steps a business follows from the moment a customer places an order to the collection of payment. It covers all functions related to processing sales orders, fulfilling them, invoicing the customer, and receiving payment, thus converting sales into cash.

Key Components of the Order-to-Cash (O2C) Process

The Order-to-Cash (O2C) process is vital for keeping businesses running smoothly and financially sound. Here are the key components you need to know:

  1. Order Management: This is where it all begins—receiving and fulfilling customer orders accurately and on time. A well-oiled order management system cuts down on errors and keeps customers happy.
  2. Credit Management: Before you proceed with orders, assessing a customer's creditworthiness is crucial. Effective credit management minimizes financial risks and ensures you set appropriate credit limits.
  3. Order Fulfillment: This stage ensures orders are processed, packed, and shipped without hiccups. Smooth order fulfillment directly impacts customer loyalty and retention.
  4. Invoicing: Getting invoices right and sending them out promptly is key to getting paid on time. Digital invoicing systems have made this process faster and more accurate.
  5. Payment Collection: This step is about getting those payments in. Automated payment systems and consistent follow-up help ensure you're paid on time.
  6. Dispute Management: When issues arise, handling them promptly is crucial for maintaining customer relationships and preventing revenue loss.
  7. Revenue Recognition: Recognizing revenue correctly in your financial records is essential for compliance and providing an accurate view of your business’s financial health.

Importance of Order-to-Cash in Business Operations

Knowing the importance of the O2C process in business operations is key to keeping your cash flow healthy and ensuring operational success. Here’s why it matters:

Benefit Description
Cash Flow Management With the O2C process running smoothly, cash flows in faster. This boost in cash inflows helps your business meet its financial obligations and gives flexibility for growth.
Customer Satisfaction Quick and accurate order processing, along with efficient problem resolution, boosts customer satisfaction and loyalty. Satisfied customers are more likely to return.
Operational Efficiency Streamlining the O2C process removes redundancies, reduces errors, and saves costs, leading to a more efficient operation overall.
Compliance and Reporting Properly managing the O2C process ensures compliance with financial regulations and aids in accurate financial reporting, avoiding regulatory issues and keeping the business on track.

Steps Involved in the Order-to-Cash Process

1. Order Management

This is where the order-to-cash process begins. It involves receiving and handling customer orders, setting the stage for a smooth workflow. This includes order entry, validation, and processing. Getting the data right from the start prevents issues later on, boosting customer satisfaction and operational efficiency.

2. Credit Management

This step involves assessing a customer's creditworthiness before processing an order. By determining if a customer can meet payment obligations, you reduce financial risk. Effective credit management is about striking a balance between minimizing risk and seizing opportunities, protecting your revenue while meeting customer needs.

3. Billing and Invoicing

Once an order has been fulfilled, it's time to create and send out invoices. Accuracy here is key because it directly affects how quickly you get paid. Clear and concise invoices help customers understand all charges, reducing the chance of disputes and speeding up the payment process.

4. Payment Processing

Payment processing is about turning invoices into actual revenue. This is where companies accept and verify payments made by customers. Efficiency in payment processing is important to keep your cash flow healthy, as it ensures that payments are received and processed quickly, minimizing the time between billing and revenue recognition.

5. Accounts Receivable and Collections

Accounts receivable and collections focus on managing and recovering funds that are due from customers. You can minimize late payments through proactive management and clear communication, significantly boosting your liquidity and financial stability. This directly impacts your bottom line, empowering you to invest in growth and achieve long-term success.

6. Automation and Software Solutions

Automation is the game-changer for your order-to-cash cycle. The right software can help you streamline everything from order management to collections, slashing manual errors and keeping data flowing smoothly.

For instance, an ERP system can act as a central command center, connecting all the dots, and giving you real-time data and insights to make smarter decisions. Plus, these platforms are customizable, so you can tailor them to your specific industry needs. The result is faster processing, fewer errors, and a dramatically improved bottom line.

Simplify your in-app purchase process and reduce delays in cash flow with Nami ML’s subscription software. Discover how we help mobile apps create seamless, reliable order-to-cash cycles.

Benefits of Integrating AI and Machine Learning

Traditional order-to-cash processes can be slow and vulnerable. Artificial Intelligence (AI) and Machine Learning (ML) are here to disrupt. Here's how:

  • Predictive Analytics: AI can forecast payment behavior, identifying potential delays before they happen. This allows for proactive measures, minimizing late payments and boosting cash flow.
  • Smarter Credit Scoring: ML algorithms can analyze vast data sets, optimizing credit scoring models to identify bad debt risks.
  • Enhanced Fraud Detection: ML improves fraud detection, safeguarding your revenue from fraudulent activity.

Common Pain Points

Here are the key hurdles to watch for in the order-to-cash cycle: 

  • Data Silos & System Disparity: Fragmented data and disconnected systems create a nightmare. Managing orders, billing, and receivables becomes slow, error-prone, and often leads to inefficiencies.
  • Compliance & Regulatory Issues: Ever-changing regulations add extra burden. You need to adapt quickly while maintaining accurate financial reporting. It's a constant balancing act.
  • Credit Risk Misfires: Inaccurate credit assessments can cripple your cash flow. This is a crucial step that directly impacts your financial health. 
  • Payment Delays: Late payments are a major pain point that disrupts cash flow. When customers disregard terms, it strains your ability to operate smoothly. 
  • Tech Hurdles: Integrating AI and ML can be daunting. Implementation complexities, resource limitations, and lack of expertise can significantly hinder your modernization efforts. Overcoming these obstacles is crucial to staying ahead in a rapidly evolving tech landscape.

Strategies to Overcome Challenges

To effectively tackle challenges related to the order-to-cash process, businesses can implement several strategic measures:

  • Centralize Data: Using an integrated ERP system helps to streamline operations, reduces errors, and improves response times.
  • Leverage Advanced Analytics and AI: Enhance credit risk assessments by refining credit scoring models with predictive analytics, leading to more accurate decision-making.
  • Update Compliance Protocols Regularly: Stay ahead of regulatory changes to mitigate non-compliance risks.
  • Automate Invoicing and Payment Reminders: Improve payment timeliness by automatically notifying customers of upcoming or overdue payments, reducing the accounts receivable cycle duration.
  • Invest in Staff Training: Equip employees with the skills to handle new technologies like AI and ML, optimizing implementation and utilization rates. This investment also boosts long-term operational efficiency and adaptability to future advancements.

By strategically addressing these pain points, businesses can reinforce their order-to-cash process, enhancing efficiency and reliability, which in turn bolsters overall financial health and competitive standing in the market.

Accelerate your app’s cash flow by enhancing each step of the order-to-cash process. With Nami ML, you can ensure a frictionless in-app purchase experience from order to payment collection.

👉Read more: Accrued Revenue: Definition & Examples

Conclusion

Mastering the order-to-cash process is crucial for a thriving business. By integrating advanced technologies like ERP systems, AI, and ML, businesses can enhance operational efficiency and financial outcomes. Addressing challenges through strategic improvements in data centralization, credit risk analysis, and compliance updates ensures a robust framework for managing transactions. Prioritizing these advancements helps companies stay competitive and ensures sustainable growth.

Frequently Asked Questions

Why is mastering the order-to-cash process important for businesses?

Mastering the order-to-cash process is essential for operational efficiency, improved customer satisfaction, quicker cash inflows, and strong compliance and financial reporting. This boosts financial health and provides a competitive market edge.

What are the common challenges in optimizing the order-to-cash process?

Challenges in optimizing the process include fragmented data systems, compliance issues, credit risk assessment, payment delays, and adapting to new technologies. Overcoming these hurdles demands strategic planning and significant investment in technology.

How does technology impact the order-to-cash process?

Technology revolutionizes the order-to-cash process by automating tasks with the aid of powerful tools such as Enterprise Resource Planning (ERP), Artificial Intelligence (AI), and Machine Learning (ML). These tools streamline decision-making, enhance credit scoring efficiency, and bolster fraud detection strategies.

What strategies can businesses employ to overcome challenges in the order-to-cash process?

To conquer these hurdles, businesses can unify data with integrated ERP systems, harness advanced analytics and AI for precise credit risk assessments, stay updated with compliance protocols, automate invoicing and payment reminders, and empower staff through training on cutting-edge technologies.