Dynamic Ad Insertion (or shortly DAI) refers to video ad tech that enables to integrate and serve personalized video ads in video-on-demand (VOD) or live broadcast content, within a single stream.
How Dynamic Ad Insertion Works
Also known as server-side dynamic ad insertion (SSDAI), the technology implies the so-to-speak “stitching” of video ad creatives into the content stream, which mitigates loading errors, hence ensuring seamless ad delivery on all screens.
An average duration of dynamically-inserted VAST ads ranges between 6 and 60 seconds, with 30 seconds being perhaps the most common choice for advertisers.
Benefits of Dynamic Ad Insertion for Brands & Publishers
The rise of SSDAI is closely connected with the growing CTV advertising market, where the ad spending volume should exceed $10B by 2021, per eMarketer, and implies a variety of benefits for businesses on the Demand & Supply side.
From an advertiser’s perspective, dynamic ad insertion enables making the most of brands’ audience insights and provides exceptional opportunities to reach and engage highly-targeted customers on Connected TV devices without a hitch.
By enabling the swap of video ad creatives within a content stream, depending on the audience segment, SSDAI enables marketers to leverage behavioral targeting capabilities and basically optimize video ad campaigns in real time. This results in serving highly-relevant video ads to viewers, hence achieving greater VTR across platforms (web/mobile web, apps, CTV devices).
From a publisher’s perspective, the key benefit of DAI is simple: it allows delivering engaging video ads, which appeal to viewers’ personal interests. This enables to ensure higher ad completion rates, hence generating greater video ad revenue from their inventory.
Challenges with SSDAI
Aside from the technical aspects in terms of integration, there are several essential staples which can “make or break it” when it comes to dynamic ad insertion. These include:
- intelligent behavioural targeting, i.e. thorough audience analysis & segmentation, indispensable for delivery of relevant ad content;
- audio normalization, i.e. ensuring the audio levels for video content and advertising creatives are balanced in order to prevent viewers’ disruptive watching experience;
- granular real-time reporting, i.e. tracking the key video ad measurement metrics for each creative to ensure the timely ad campaign optimization, if needed.