Dynamic Ad Insertion (DAI): Four Best Practices for Content Providers

Dynamic Ad Insertion (DAI): Four Best Practices for Content Providers

Streaming services are taking the TV marketplace by storm — recent market data found that in 2020, the over-the-top (OTT) content market was worth $45.1 billion in 2021 and is on track to break $120 billion by 2028. 

As the market diversifies, however, effective monetization becomes critical. While subscription-based approaches offer a solid starting point, advertisements remain the real bread-and-butter of OTT revenue. The challenge? Serving up ads that viewers want to see. Traditional TV advertising models, which saw sets of “burned in” ads played at regular intervals during shows, helped brand awareness but didn’t always convince viewers to take action. It makes sense: While demographic research informed the general composition of these ad breaks, all viewers and households saw the same things at the same time.

Today, however, personalization is the path to advertising success. With 71% of consumers saying they’re frustrated if shopping experiences aren’t personal, and targeted ads generating a 38% bump in product revenue, it’s clear that giving viewers the ad content they want is essential for OTT operations.

Achieving this goal, however, requires the right approach: Dynamic ad insertion (DAI). In this piece, we’ll break down the basics of DAI and offer four best practices for streaming services to make the most of dynamic ads.

What is DAI, and How Does it Work?

Four Best Practices for Content Providers

Understand the Options

Pinpoint Personalization Sources

Find the Right Partner

Look to the Future

PDG: Delivering on Dynamic Potential