Realizing New Revenue Streams with Dynamic Ad Insertion
by Luis Cantu, Vecima Content Delivery & Storage
What if every household – or even every device in every household – was its own unique ad zone for linear TV? We’re accustomed to dynamic internet ads, in which every user and session is unique. Using the same level of personalization and targeting on linear channels would be a game-changer for multiple system operators (MSOs) and telecommunications providers (aka telcos). We’re not there yet, and adoption will take time, but we’re well underway with streaming and dynamic ad insertion (DAI) for linear content.
The Difference with DAI
DAI is the ability to deliver a personalized ad within a video stream of live linear programming or on-demand content. The traditional approach to linear TV advertising is largely based on geographic zones. Most of the ad spots are owned by the content provider and filled with national ads from large brands, with a few “avails” left over for the provider to insert their own local advertising content. Location is essentially the only demographic information available in the traditional approach.
As providers adopt new technologies to stream linear content, every live or on-demand channel session becomes unique. That’s where DAI comes into play as a means of narrowing down zones to provide better targeting for advertisers.
The Incremental Opportunity
DAI evolves linear advertising from geography to targeting. With streaming making every session unique, providers can gain more detailed targeting information about subscribers. The more targeted an ad can be, the more a local advertiser will be willing to pay for it, knowing they’ll reach their exact, ideal audience. This also enhances the viewer experience by serving them relevant, targeted ads. For MSOs and telcos, DAI has many layers of advantages:
With all these benefits, DAI stands as an incremental revenue stream to increase the profitability of overall ad insertion. It can help offset and overcome the increasing content costs and subscriber churn that many providers face today.
Vecima’s MediaScale™ Dynamic Content solution helps service providers gain control over content by supporting content rights, blackouts, and advertising. By manipulating content at the edge of the network, operators can deliver more efficient, personalized video content and more opportunities to monetize that content with targeted, higher-value ads.Back to all resources
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