4 reasons why 2024 is a massive year for Dynamic Ad Insertion

Amidst the many 2024 predictions from the streaming industry at the moment, there are a few themes that are constantly mentioned.

I’m thinking of:

1. It’s going to be a difficult year for streaming services
2. Streaming is fast becoming the primary business for most media companies
3. Advertising will be the central pillar of monetisation strategies

At the heart of all these trends sits Dynamic Ad Insertion (DAI). It is the central cog that links streaming tech to adtech and, without it, advertising in video streams is not possible. With this in mind, it’s surprising that DAI isn’t being discussed more.

The reason why the word-clouds are light on DAI is that it is often seen as a solved problem. It can be thought of as a commodity, with multiple vendors offering pretty much the same off-the-shelf product. In fact, nothing could be further from the truth and it could actually be damaging to a streaming service’s advertising business if it underestimates the role of DAI.

Here are my top 4 reasons why DAI should be on the streaming industry’s mind in 2024:

1. Scale

We have not even scratched the surface of the type of scale that streaming is going to achieve in the next 5-10 years. This is especially true of live sports where all viewers go to ad breaks simultaneously. If DAI is not tested and proved with at least 10m concurrents in January 2024 then it’s a long way to climb to support 20m+ in the next couple of years.

2. Accurate measurement of ad views

For advertising strategies to be viable, it’s important that the DAI system is delivering accurate, trusted measurement of ad views, as opposed to ads served. It’s a crucial metric because it matters to brands. And if brands can’t get the metrics they need to justify their CTV ad spend, they’ll simply place their ad dollars elsewhere.

3. Consistency of experience

The first step for streaming services embracing an advertising strategy is to switch on DAI and start selling ads. Most have taken that step now, so the focus is shifting to delivering a consistent experience, both for the viewer and the operations team behind the scenes. A real trend of the last couple of years is to apply consistent DAI experiences across all content types, including: live streaming, VOD, FAST.

4. Unlocking new inventory

Maximising advertising potential in streaming is harder than it sounds. DAI technology must be able to monetise multiple video formats (HLS and MPEG-DASH support should be a minimum requirement). It must also be flexible enough to deliver ad dollars on all devices, from mobile to CTV, Fire TV Sticks, and many more. Also, many streaming companies are yet to tap the full advertising potential of DVR windows and pop-up channels in live streams.

With advertising such a crucial factor in the success (or otherwise) of streaming services, DAI is the single most important piece of technology in the streaming workflow right now. The ability to maximise the ad opportunities available could make or break fortunes in the year ahead.

DAI is not factoring highly in the industry’s thoughts for 2024, but - believe me - it really should be.