HARMONIC IS LEADING THE CHARGE FOR TARGETED AD INNOVATION WITH ITS VOS360 PLATFORM
watching premium content. However, the model for targeted advertising is evolving, with service providers and advertisers testing out the delivery of shorter ads. This change is being driven in part by the growth of free ad-supported streaming television (FAST) services. FAST services offer a limited amount of advertising, and service providers want to maximise the value of the available ad time. Instead of running a 30-second ad, service providers may offer four seven-second ads that measure revenue per second instead of pure impressions. Collectively, this model pays more than the CPM model. Server-side ad insertion: Targeted ads can be delivered in a couple of ways. The traditional method of client-side ad insertion involves using an SDK plug-in on the client in order to play ads at the appropriate times. Server-side ad insertion (SSAI) enables service providers to customise the video experience for each viewer by modifying the video manifest. SSAI is becoming the new standard for a few reasons. Viewers today expect an exceptional quality of experience for video streaming. With SSAI, ads are stitched into the content stream on the server side, giving viewers a smoother overall experience. Processing targeted ads in the same pipeline as the
videos will then provide consistency and frame accuracy to streaming, eliminating transition glitches. Machine learning: An important innovation for targeted advertising is machine learning (ML). Today, FAST services are deriving viewer information such as device ID and IP address to deliver targeted ads. ML takes this use of data to the next level. Through ML algorithms, service providers and advertisers are learning more about viewer patterns, and thus coming to understand which ads resonate with viewers and optimise ad inventory decisions. HARMONIC LEADS THE WAY According to Statista, Hulu’s advertising revenue in the US will reach $5 billion by 2026. Peacock and Netflix are projected to follow with $2.7 and $1.7 billion in ad revenue, respectively. If service providers want to stay competitive and be at the forefront of video streaming, they need to adopt a cloud-native solution that supports advanced targeted advertising techniques. By employing a cloud-native streaming solution, providers can scale to meet the demands of millions of concurrent streams – critical for live events that attract big audiences. Implementing a cloud-based streaming workflow ensures that targeted ads are delivered seamlessly, minimising disruptions and boosting engagement. Providers can also keep
subscribers loyal by offering both better ad targeting and inventory optimisation. Harmonic leads the charge for targeted ad innovation with its VOS360 SaaS platform. This simplifies every stage of media processing and delivery for premium video streaming. Running on three major public clouds, the end-to-end platform provides unparalleled agility, resiliency, security and scalability for a superior viewing experience. With support for SSAI and DAI technologies, the VOS360 platform enables millions of ad impressions to be delivered daily by global Tier 1 operators. To learn more, see Harmonic at NAB Show in booth W2801, or visit harmonicinc.com
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