Dynamic ad insertion is an effective way to monetize content. According to Statista, Global spend on TV advertising is expected to rise from $173 billion in 2018 to $192 billion in 2022. In the next few minutes we are going to discuss the concept of dynamic ad insertion and how it adds value in monetizing your content.
What is Dynamic Ad Insertion?
Dynamic Ad Insertion (DAI) is a server-side video ad technology that serves video ads into live linear programming and video on demand content. It’s a technology of stitching your video content and ads into a single stream and removing the ad request and ad response process from the SDK. With dynamic ad insertion, the possibility of client-side errors are reduced and produces a seamless TV-like experience without latency or buffering issues between content and ads.
Why is Dynamic Ad Insertion Important?
When it comes to delivering targeted advertising initiatives, dynamic ad insertion is the most trusted technology to opt for. With DAI, your ads can be targeted at multiple levels starting with geolocalization, socio-demographics, behavioral profiles, and also per device, per content and per user. What DAI does is, it stitches your video content and targeted ads into a single stream, independent of a web page or app to produce a seamless, TV-like experience for the viewer.
Benefits of Incorporating Dynamic Ad Insertion
Dynamic ad Insertion offers a host of advantages like ad block prevention, personalized ads, etc. Let’s learn more about them:
Ad Block Prevention
A significant advantage of DAI is that its seamless stitching makes ads and content appear the same to ad-blocking software. This helps you counteract ad blocking software, which is often installed on viewing devices. By virtue of this advantage, be sure that your ads are definitely to play, which is the first step to raising brand awareness and converting passive viewers into active buyers.
Using DAI, your ads can be perfectly timed and serves as one of the best ways to boost customer engagement. Using DAI, ads are planned for a specific time slot but can be switched instantly and dynamically on-the-fly. Delivering the right message at the right time to their target audience is achieved by this dynamic adaptation.
Muvi Ads is dynamic ad insertion enabled helping you to deliver relevant ads to targeted audience segments without latency or buffering issues.
Ideal Broadcast Viewing Experience
No awkward pauses, buffering or and annoying return latencies between content and ads, DAI helps in producing a spectacular broadcast viewing experience. This is one of the most popular advantages of having a dynamic ad insertion-enabled ad server.
If you are interested about learning more about ad servers, read our blog What is an Ad Server and How does it Work?
High-Level Data and Analytics
When cloud-based video processing is combined with data driven insights and analytics, OTT providers get the opportunity to deliver targeted advertisements to laser-focused audience segments. And when ads are more targeted, more are the chances of ad engagement rates.
More engagement leads to an increased CPM rate. A brand with a higher CPM may decide to limit ads, without reducing revenue, to become more appealing to subscribers. Since DAI CPM is higher, you may consider reducing the ad load, without reducing revenue.
As OTT service providers, you can use these analytics to evolve your video service by addressing the increasing demand for personalization to align with viewer expectations. This key insight will help you make more informed decisions for creating more thematic streaming channels, subscription models and pricing policies, etc to evolve your video service.
Also Read: How Does Retargeting Work?
Personalization and Multiscreen Advertising
In an era where new OTT video services are popping up every day, it becomes imperative to make your on-demand or live video streaming service stand out amongst others and this can be done only through personalization. Tailor-made content is a solution to attract new audiences and also retain existing subscribers and this can be greatly achieved through delivering personalized ads using DAI technology.
Findings of a survey has revealed that over 60% of viewers are highly annoyed when generic ad messages are delivered to them randomly. Here’s where personalization becomes the key to customer satisfaction. Data has it that the majority of millennials and Gen-Zers believe in personalized ads/offers from brands while video streaming. Targeted advertising is better received and makes a stronger impression, which in turn raises ad revenue. DAI enabled ad servers can help brands deliver that custom touch that appeals to viewers on a personal level.
Muvi Ads lets you host and deliver multi-format retargeting ads to your websites and apps seamlessly across multiple platforms. Supporting dynamic ad insertion, geo-targeting, and low latency ad delivery, Muvi Ads requires no minimum views to open an account. Not only that, but you also get to keep 100% of the Ad Revenue!
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