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Understanding Ad Serving in CTV and OTT Advertising

Understanding Ad Serving in CTV and OTT Advertising

Sonal Agarwal
Sep 17, 2024
Understanding Ad Serving in CTV and OTT Advertising

In recent years, the way people consume content has undergone a dramatic shift, which has had a significant impact on the entertainment industry as well. The numbers are declining as far as traditional cable subscriptions are concerned. On the other hand, video streaming platforms and connected televisions are experiencing explosive growth. For publishers, video ad campaigns across CTV and OTT platforms have created multiple opportunities to drastically increase ad revenue. From the video ad server and video ad networks to streaming platforms and publisher platforms, there are a lot of components involved in CTV advertising and OTT advertising, and understanding the infrastructure of video ad serving across CTV and OTT, how to identify the top video ad servers, how video ads are served, etc. can help advertisers optimize their ad campaigns for success.

How OTT and CTV Ads Are Served

To understand how OTT and CTV ads are served and the role of a video ad server and video ad networks in the process, it is first important to consider how video ad serving platforms and streaming platforms communicate with the OTT and CTV devices. The most common standards that a video ad server and streaming platforms use for communicating with OTT and CTV devices are the Video Ad Serving Template (VAST), Video Player-Ad Interface Definition (VPAID), and the Secure Interactive Media Interface Definition (SIMID). Another important consideration is the ad-insertion method being used, whether the ads will be served server-side (SSAI) or client-side (CSAI). Apart from these aspects, the general ad delivery process for serving video ads across CTV and OTT platforms is as follows:

  • The Audience is Created: Audience segmentation is done based on the subscription data of the users, which can be enriched with household information, like preferred show categories, shows watched, and other first- and third-party data.
  • Campaign Is Pushed: After segmentation, audience matching begins. The video ad server matches the audience to specific subscriber lists of publishers for the video ads to be pushed, downloaded, and buffered.
  • Ads Are Displayed: This is where, based on the CTV or OTT device, the right standards are used to communicate with the device.
  • Reporting: Top video ad servers collect and send back ad performance metrics and data, which can be used to generate detailed reports for advertisers to gain insights into what strategies are working for them. These insights can help ensure the success of their future CTV and OTT video advertising campaigns.

Ad Insertion Methods

Primarily, there are two methods of using a video ad server to insert video ads into streaming content that is being consumed through CTV or OTT platforms.

  1. Server-Side Ad Insertion (SSAI)

SSAI is a method for serving video ads, where the ads are stitched directly into the video content metadata on the video ad server side right before it is delivered to the viewer’s device. With this serving method for video ads, publishers can deliver a better experience to their viewers, as SSAI allows for smoother transition and playback, with no pauses or breaks. It also eliminates the need for updating codes or markers on video ad networks or servers. 

There are several advantages offered by this insertion method for video ads, for publishers as well as for advertisers.

  • As the ad is stitched into the video stream directly, SSAI is great for live streams as the ad is less susceptible to ad blockers.
  • High fill rates and increased impressions and completion rates.
  • A buffer-free and seamless viewing experience as ads are pre-buffered along with the content before it is delivered.
  • Ads can be used for an unlimited number of applications once they have been stitched into the video content.
  1. Client-Side Ad Insertion (CSAI)

In CSAI the video player sends an ad request to the video ad server. On receiving the request, the server sends back the most relevant ad to be served to the user. From communicating with the ad server to stopping the video and making an API call to request for a video ad, the publisher and the video player are responsible for ad delivery.

Some of the top advantages of CSAI include:

  • Various types of ads, like clickable, closable, or skippable ads are supported.
  • Various ad formats, like click-throughs, surveys, and overlays can be used to enhance viewership and engagement.
  • It is very easy to track metrics and generate detailed ad performance reports. Advertisers can also access a lot of event data for ad tracking.
  • This ad insertion method can work with or without the use of markers.

How CSAI and SSAI Are Different

  • Ad Insertion

With CSAI, ads are inserted into the video content client side through the video player and also allow advertisers to integrate interactive features into the ad. With SSAI, the ads are stitched into the video content server side, providing a seamless, uninterrupted viewing experience.

  • Ad Targeting 

With CSAI, advertisers can access precise, real-time user data that can be used for targeting specific users and delivering highly personalized ads. This capability is not available with SSAI as it cannot provide real-time data, making personalization of ads difficult.

  • Measurement 

Setting up ad performance tracking in CSAI is quite simple, as VAST facilitates video players to report important performance metrics, like clicks, click-throughs, video ad completion, etc. In SSAI, measurement can be more challenging as there is a need for robust, independent client-side verification for verifying ad insertion, which is not there at present.

  • Viewer Experience 

As CSAI is done downstream at the client side, it can result in frame drop or buffering in the video. On the other hand, in SSAI, the ad decision communication and ad stitching are done upstream on the server side, which helps ensure a smooth playback for viewers.

Standards for Communicating with OTT and CTV Devices 

To ensure consistent and effective communication between a video ad server and OTT/CTV devices, certain standards can be used, with VAST, VPAID, and SIMID being the most commonly used standards.

  • VAST (Video Ad Serving Template) 

VAST is a universal standard for serving video ads across different platforms and devices. It is a third-party ad tag that is created by an ad builder. It works by syncing video players to the ad builder, enabling advertisers to serve multiple ads in different inventories within a video player. It ensures that video ads can be delivered and tracked consistently across various platforms.

  • VPAID (Video Player-Ad Interface Definition)

 VPAID is an upgrade of VAST, allowing advertisers to create interactive video ads by enabling the integration of rich media elements. VPAID tags are most suited to measuring the viewability of an ad. However, these ad tags do not support stitching of the ads into the video content server side. 

  • SIMID (Secure Interactive Media Interface Definition) 

SIMID is designed to address the interactivity aspect of your ads, aiming to support the delivery of safe interactive ads in a transparent environment. SIMID also ensures cross-platform support. It manages this by separating the media asset and the interactivity layer of an ad. SIMID helps deliver safe, transparent, and engaging ad experiences for viewers while providing robust performance metrics to advertisers.

As OTT and CTV video advertising continues to grow, advertisers need to know about video ad servers, how they work, and how video ads are served across CTV and OTT platforms to maximize the reach and engagement of their ad campaigns.

Expand Your Reach the Right Way
The last few years stood witness to the boom in Connected TVs and Over-the-Top platforms, which established themselves as the primary source of video content for a majority of the world’s population. As more people shifted to these platforms as compared to linear TVs, for brands and advertising companies, CTV and OTTs represented new opportunities to reach a new, diverse, and growing audience base. Whether it is brands or advertising companies, integrating connected TV into their digital campaigns can significantly improve the impact of their cross-channel marketing strategies.
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