One of the key components of a modern video ad server is transparent reporting, giving users insights which allow them to make intelligent decisions when managing their ad campaigns. Media owners need tools that help them assess the performance of ads on their inventory so they can optimize yield and help ensure that the experience for their users is not being negatively impacted. At the same time, advertisers rely on accurate reporting on every impression they purchase to help them understand the value they’re getting and adjust accordingly to maximize efficiency.
However, having access to this information doesn’t take you very far unless you also have the tools to act on it. That’s where Dynamic Ad Insertion comes into play.
Dynamic ad insertion (or DAI) is a technology that allows advertisers to swap out ad creatives in linear, live or video-on-demand, content. Rather than just serving the same ad to each consumer, this makes it possible for advertisers to actually leverage the deep audience insights that are available through a modern video ad server, targeting each viewer specifically. The benefit is clear: more nuanced targeting delivers more relevant ads on an impression-by-impression basis, increasing the likelihood that consumers will engage with the message and ultimately make purchases. It’s campaign optimization in real-time.
While dynamic ad insertion is primarily a tool used by advertisers, media owners have a lot to gain from it as well. Advertising is what keeps the internet free, and many media owners rely on ad revenue to support the content they create. Still, poorly-targeted ads can be distracting and disruptive, causing viewers to navigate away from the content or develop negative feelings toward the media owner (or the brand). Thus, from a seller’s perspective, dynamic ad insertion boosts the performance of ads while preserving the user experience, which translates to higher CPMs and more revenue for the media owner.
Dynamic ad insertion adds another layer to the capabilities of a modern video ad server, helping advertisers and media owners take full advantage of what it has to offer. Who doesn’t love a win-win? Check back next week for more on how dynamic ads can be used to monetize content across screens and check out our additional ad serving resources:
This article was written by Erin Smith, marketing coordinator at SpotX.