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VOD Dynamic Ad Insertion – Next Big Thing

VOD Dynamic Ad Insertion

Dynamic ad insertion (DAI) on video-on-demand (VOD) is a growing opportunity for cable operators, programmers, ad agencies and advertisers because it expands advanced advertising opportunities into non-linear viewing. Comcast alone averages 350 million VOD views a month, and freer on-demand programming of popular network shows is becoming available. VOD Dynamic Ad Insertion allows ads to be inserted dynamically into VOD content to create more value for advertisers, content owners and cable operators.

The ads, which can be 15, 30 or 60 seconds, can be inserted into the VOD asset in pre-roll, mid-roll and post-roll formats. VOD DAI enables relevant, up-to-date ads, while also providing analytics and measurement tools that gauge the effectiveness of the ads for all of the parties involved in a campaign.


The business of monetising On-demand video is linked to the three-letter acronym that is “DAI” for Dynamic Advertising Insertion.

Strategically, VOD Dynamic Ad Insertion is a way to do two things:

  1. Refresh advertisements that had been “baked-in” to a video title, before it stored on an on-demand server, and
  2. create new campaigns on the fly. Further, DAI ads can be short (:10) or long (:30+); addressable or not. In that sense, DAI creates perpetual value for stored VOD titles, especially when compared to the “instant expiration” of linear as a promising new revenue stream.

Technologically and tactically, a stable vendor and equipment base exists for the insertion, campaign management, and measurement features needed in a crowded, multi-industry standards environment.

The viewing habits of consumers have changed from time to time with technology and latest happenings. The live TV consumption was shifted to the time-shifted viewing. VOD allows the users to watch various shows and movies on one platform without any additional software requirements. VOD has gained great popularity by creating the new advertising opportunities for the companies. The Dynamic Ad Insertion technology opened the doors of advertising opportunities which allow the cable providers to target the advertisements out of VOD content.

  • VOD Dynamic Ad Insertion created huge opportunities for various parties which can gain good value for advertising. According to the recent reports, it revealed that the consumers of VOD are watching commercials at an average of 30 minutes on VOD comparing to the linear TV. So, advertisers are reaping good benefits with VOD DAI.
  • The Ads can be varied from 15 sec to 60 seconds in length. The thirty-second ads are viral across the VOD platforms.
  • The Dynamic ad insertion was created new opportunities for the cable TV providers for targeting the ads.
  • VOD ad insertion is using the major broadcast and the cable networks and the VOD DAI platforms were integrated across the 130 DMA and increase its ad insertions.
  • The major advantage of VOD is ads are unskippable by the viewers, and the functionality determined by the individual network programming providers.
  • DAI/VOD is now offering the agencies and advertisers with the best option to target the consumers utilising the video ads in the programming environment.
  • DAI incorporation allows the advertisers to find more opportunities to recapture the live TV viewing as well as it helped in increasing the key demographic reach with time shift viewing.
  • Therefore VOD and time shifting view have created a great opportunity for the adverts to reach the targeting consumers and grabbed the best impression from consumers as well as the advertisers.

Operationally, engaged cable companies like what they see so far but as with so many things, some are farther ahead than others. Content providers also like the promise of DAI, but urgently need for it to extend beyond cable VOD assets to other platforms they use for on-demand like for serving video over IP to PCs, tablets and phones.

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