How To Unlock Dynamic Ad Insertion’s Full Potential For Live Content

The state of U.S. streaming is evolving. Smart TV and connected TV (CTV) usage is on the rise, and audiences are increasingly usng ad-supported platforms. As such, dynamic ad insertion has become crucial for monetizing high-value live content.

What is the current state of OTT advertising in the U.S.?

According to eMarketer, the number of U.S. CTV viewers is projected to reach 238 million in 2025. Around 88% of U.S. households own at least one internet-connected TV device, and CTV has become the fastest-growing ad channel in the US.

The Current says over 72% of all U.S. TV viewing across broadcast, cable and streaming was ad-supported, with the biggest portion of this coming from streaming (42%).

This isn’t by default; viewers actively prefer ad-supported streaming. According to a report from MNTN research, approximately 66% of U.S. TV viewers favor ad-supported streaming services.

This significant and prolonged shift toward streaming as a preferred method of viewing, coupled with a growing appetite for ad-supported over subscription services, should really excite advertisers. Now, broadcasters and platforms alike need to shift their focus further to the ad spend opportunity for OTT, and at the heart of that strategy lies dynamic ad insertion technology, which forms the crucial bridge between streaming technology and ad technology.

Mastering Dynamic Ad Insertion: Viewing Experience

Viewers won’t settle for less than smooth, broadcast-quality experiences. To achieve this, solutions such as server-guided ad insertion (SGAI) and server-side ad insertion (SSAI) are crucial for delivering seamless ad transitions. Live rewind functionality is also expected during live events, and SGAI can make resolving “historic ads” in rewind mode much easier, opening up more monetization opportunities.

Audience Reach

While CTV usage has increased, the device landscape is fragmented. Smart TV brands vary, and the broad set of mobile devices and gaming consoles is a huge viewership driver. So, dynamic ad insertion must deliver across this breadth of device types to ensure every last opportunity for monetization can be secured.

Unlocking Advertising Inventory

Live events offer the much sought-after mass reach monetization opportunities that are increasingly difficult for advertisers to source. The use of contingency ad-pods can open new inventory. These are fully addressable ad breaks that can be loaded behind the scenes without affecting pre-planned breaks. When an unscheduled break in play occurs, such as an injury stoppage, a swift contingency ad break can be added to generate additional revenue.

Scalability

Live events like sports often see sudden spikes in viewership, for example, during a game-winning moment or overtime. Without prefetch systems that distribute ad requests over time, capacity constraints can lead to blank ad slates and missed revenue at peak moments. Intelligent pacing is key to ensuring seamless delivery at scale.

Measurement

Advertisers demand reliable performance and viewability data that delivers actionable insights. SSAI/SGAI, combined with client-side tracking, delivers the data required for such granular reporting, which is critical for building trust and securing premium ad spend.

Next Steps

The OTT advertising market is already the fastest-growing advertising channel in the U.S., and it has plenty more room to grow. Monetization opportunities are there for the taking and maximizing them means more than just stitching ads.

This opportunity requires a scalable, measurement-led, dynamic ad insertion strategy that can handle a variety of device types, master seamless ad transitions, enable new inventory creation, scale smoothly with large audiences and deliver trusted, detailed measurement.

Broadcasters and platforms that fully embrace these capabilities will put themselves in the best possible place to be successful in unlocking the U.S. OTT advertising opportunity.

Paul Davies is head of marketing at Yospace.