“Netflix co-CEO Ted Sarandos confirmed on Thursday that the company would begin testing an ad-supported, lower-priced subscription tier. The streaming company is speaking to multiple potential partners to help ease its entrance into the ad world, Sarandos said while speaking at the international ad festival Cannes Lions. Those partners reportedly include Comcast, NBCUniversal, and Google.”
How are ads inserted on OTTs?
Ads are inserted on client side or server side of OTT box. Client side addition is an old technique but is susceptible to ad blockers. Since most of the ads are from client side(outside) they could be blocked.
Server side ads integrate in to the content. Also this is added into live broadcasts. Many advantages compared to client side as : solution to ad blocking, eliminates buffering, latency, better experience and implementation.
Parties involved are:
- Advertiser — The advertiser is a brand or company looking to get its brand in front of OTT
- Agency
— Agency is often an intermediary party that handles ad creation
- Demand-Side Platform (DSP) — A DSP is a platform that enables advertisers (or their partner agencies) to buy ad inventory
- Publisher — Publishers are content providers looking for ad demand to monetize
- Supply-Side Platform (SSP) — An SSP is a platform that enables publishers to sell ad inventory
- Ad Server — An ad server is a technology that publishers, advertisers, and video ad networks use to serve ads across various OTT channels.
- Analytics & Optimization — This part of the OTT advertising ecosystem comprises various tools that collect and analyze viewership data.
As you can see, the OTT market’s massive potential is only going to keep growing. That is why getting a foothold in the market early on can prove imperative to your success.
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