February 15, 2020

All You Need to Know About Dynamic Ad Insertion and Its Benefits 


  • 1 What is Dynamic ad Insertion?
  • 2 The two standardization protocols of IAB play a vital role in the working of DAI
    • 2.1 #1 Video Ad Serving Template (VAST)
    • 2.2 #2 Video Multiple Ad Playlist (VMAP)
  • 3 Some of the main benefits of Dynamic Ad Insertion are listed below:
  • 4 What does it mean for Local TV ad sellers?
  • 5 What does it mean for Local TV ad Buyers?
  • 6 Bottom Line

The online space’s revenue generation capability is increasing with real-time media buying, addressable advertising, interactive ads on the screen, and personalized messaging. The success of these growth drivers depends on how well the ecosystem implements the technology of dynamic ad insertion (DAI) for personalized marketing to target audience. According to the automated content recognition (ACR) data of the viewers, DAI enables the ads to be assigned quickly and reliably.

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What is Dynamic ad Insertion?

DAI is a video advertisement technology that allows the delivery of video ads to viewers within live-linear or video on demand (VOD) content. Before serving the video content and advertisements to the viewing platforms, DAI tailors it into a single stream.

Earlier, the end user’s platform would call for content and the ad separately, and then according to the coding, both would run in sequence. This method created problems in loading time and left a lot of room for errors in serving ads and tracking and reporting them. By tailoring it to a single stream from the user’s device to the server-side, it has drastically reduced these problems.

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The Google Ad Manager contours the difference in workflow between DAI ad placement and Non-DAI ad Placement. Ad delivery of Non-DAI video requires four steps to fetch the ad through IAB or Interactive Advertising Bureau’s Video Ad Serving Template (VAST). Compared to this, only two levels are required for DAI-enabled Ad delivery.

The two standardization protocols of IAB play a vital role in the working of DAI

#1 Video Ad Serving Template (VAST)

It allows the ad servers to use a single ad response format across various compliant video players. It is generally used to serve in-stream video ads. The latest version VAST4.0 includes the elements that are previously found in the IAB’s video player Ad-interface definition (VPAID). It is getting phased out gradually, but is still in use.

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#2 Video Multiple Ad Playlist (VMAP)

It is defined as a protocol that permits the content owners to describe the placement of ad breaks in their content when they are not controlling the content distribution outlet or the video player.

The protocols are mainly designed to gain scalability, flexibility, and delivery across platforms and devices.

Some of the main benefits of Dynamic Ad Insertion are listed below:

  1. Saves cost – Cost-saving is the most efficient way to handle workflow processing of media and DAI works well on this front.
  2. Support of Ad Server – You get the help of Video Ad Serving template’s standard ad server.
  3. Insertion of simple Ad Break – Entirely automates ad break insertion into source content.
  4. Normalization of audio – A balanced level of sound for source and ad contents.
  5. HD Support – Support for both SD and HD content.
  6. Ad load latency reduction.
  7. Individual media streaming – Individual media is streamed for each viewer uniquely where different end-users get to see different ads.
  8. Prevention of ad blocking – It prevents blocking of the ad as the stream cannot be detected as coming from a known ad-serving URL.
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Discussing the benefits of Dynamic Ad Insertion from the perspective of Client-Side Ad Insertion (CSAI) and Server-Side Ad Insertion (SSAI)

  1. Advantages of CSAI

CSAI is the present standard to incorporate video ads into a video stream. CSAI has some main benefits like Superior metrics so that the advertisers can monitor the metrics directly through the software development kit (SDK). Current ad technologies like interactivity, viewability, and click through are built on the client-side. The significant advantage is the ability of CSAI to serve VPAID Ads.

  1. Advantages of SSAI

Server-side ad insertion is popularly known as “ad stitching.” It is a superior choice for the simulcast, live programming, and linear programming prevalent in today’s times. The experience of users has improved with SSAI by having a single continuous stream of content when altering between the ads and the content. Also, there is reduced latency in this technique. It also opens up real-time bidding through programmatic technology.

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What does it mean for Local TV ad sellers?

Most of the national TV networks are moving in streaming space where viewers consume media on internet, mobile, and other non-TV platforms. The local TV still holds the right to broadcast or cable distribution. Therefore, local TV has significant revenue opportunities.

What does it mean for Local TV ad Buyers?

Local buyers have good access to local station inventory arriving through broadcast formats on smart TVs. They will also have access to services of digital streaming without losing the inventory base available.

Bottom Line

The local TV businesses and buyers cannot go for a wait and see approach for Dynamic Ad insertion. It delivers significant gains for first movers, hence, this needs to be a part of your brand’s marketing mix at the earliest.

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