The targeted ad ecosystem is complex. By adopting a cloud-based video-streaming process, service providers simplify integration with various components – including ad servers, user data platforms and more. Running the entire video- streaming and targeted ad workflow on the cloud ensures seamless communication and ultimately a superior experience for viewers. A MOVING TARGET Until recently, most targeted advertising has been based on content, demographics or geography. However, change is underway. Streamers are experimenting with deeper targeted advertising approaches to reach specific audience segments and realise higher CPMs. Here are a few of the targeted ad innovations being utilised in the video-streaming market. Frequency capping: A targeting approach that limits how many times a viewer sees an ad or advertiser in a timeframe. Identifiers like IP address or device ID decide if a viewer has already seen an ad or advertiser. The goal is to reduce fatigue, ensure the brand isn’t diluted and increase engagement. In-content product placement: Service providers are exploring alternative methods of advertising, such as in-content product placement. One example is inserting a billboard for a product into video content to advertise specific brands. Embracing new ad formats like in-content placement enables service providers and advertisers to reach audiences across today’s increasingly fragmented video-streaming landscape. Ad-pod optimisation: Service providers are selling targeted ads based on optimised ad-pod placement. An ad pod consists of a group of ads sequenced to play together during an ad break. Typically, the first and last ad in a pod receive the most attention from viewers – therefore they’re worth more. Ad pods offer service providers an opportunity to maximise revenue from each break, while giving advertisers more control over ad placement. Revenue-per-second business model: Typically, viewers have been accustomed to a 30-second ad experience when A GROWING NUMBER OF TIER 1 OPERATORS ARE TAKING A VESTED INTEREST IN TARGETED ADVERTISING
THE EVOLUTION OF CLOUD STREAMING AND TARGETED ADVERTISING As competition heats up in the video-streaming space, a growing number of Tier 1 operators are taking a vested interest in delivering targeted advertising to grow their revenue streams. One of the biggest challenges that service providers face with delivering targeted ads is scalability. Leveraging a cloud-native video-streaming workflow in the public cloud, service providers can deliver targeted advertising at scale for millions of concurrent viewers. The elasticity of the cloud enables service providers to deliver custom manifests to each viewer in real time.
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