As streaming services continue to look for new ways to generate revenue, platforms face the ongoing challenge of integrating ads without disrupting the viewer experience. The usual ad methods can fall short as they can cause buffering, interruptions, or leaving ads vulnerable to blockers. Viewers today expect a seamless experience, and if the ads aren’t well-timed or personalized, it can lead to frustration and abandonment of content. This has pressured streaming services to find more innovative and efficient ad delivery methods that can keep their viewers engaged. That’s where Server-Guided Ad Insertion (SGAI) comes into play, offering a balanced solution to enhance ad delivery and user satisfaction between the SSAI and CSAI.
In this blog, we’ll explore SGAI and highlight its characteristics, workings, and comparisons to other ad insertion methods, such as client-side and server-side. You’ll also discover how SGAI can help increase platform ad revenue by improving targeting, minimizing interruptions, and reducing the impact of ad blockers. Let’s get into it.
What is Server-Guided Ad Insertion?
Server-guided ad Insertion (SGAI) is a hybrid method that combines client-side and server-side ad insertion strengths. It helps stream ads seamlessly into video content while keeping the viewer experience smooth. The server guides the process through SCTE-35 markers which help dictate where ad breaks can occur, while the client (the viewer’s device) handles the actual stitching and playback of the ad content, which ensures that ads are displayed at the right moments without causing issues with the stream. To be clear, a player that has this integrated within its capability, such as the Bitmovin Player, is necessary to take advantage of SGAI.
This approach allows for more personalized and targeted ads. Instead of pre-inserting ads into the content (as with traditional server-side methods), SGAI enables real-time decision-making, where ads are selected based on the viewer’s location, preferences, and behavior. Streaming services can deliver more relevant ads to each user, boosting engagement and improving the overall experience.
How Does Server-Guided Ad Insertion Work?
The process behind SGAI involves the server working closely with the client device to ensure that ad delivery plays well and doesn’t interrupt the user. As highlighted above, SCTE-35 markers are necessary when implementing SGAI into the streaming workflow. Here’s a step-by-step breakdown of how it works:
- Manifest Creation:
The server creates a manifest with SCTE-35 makers that outlines when and where ad breaks can occur during the content stream. - Ad Request:
When the viewer reaches a specific ad break, the client device sends a user-specific request to the ad server. The server selects an appropriate ad to return based on the viewer’s profile or other targeting data. - Ad Playback:
The client device will then handle the ad insertion, formatting, and playback of the ad, ensuring instant transitions between the ad content and the main content without causing delays or stream issues.
This system allows streaming services to dynamically insert ads on the client, offering a more tailored viewing experience without the technical hiccups often found in traditional methods.
Types of ads used in SGAI
Streaming platforms are able to integrate a wide variety of ad formats that suit their content needs and allow for flexible and dynamic ad placements, maximizing engagement without disrupting content flow. SGAI facilitates the expected pre-roll, mid-roll and post-roll ad positions while also integrating more modern multiview ad formats such as:
- L-bar Ads
- Side-by-side Ads
- Picture-in-Picture Ads
- Overlay Ads
- Companion Ads
These formats are particularly popular in sports streaming use cases as they help keep the viewer watching while not being disruptive to their experience. This also enables platforms to leverage specific ad behavior, such as interactive, skippable and non skippable ads and captialize on more relevant ads within their viewers sight.
The image above shows an example of how the ads look within multiview playback, where viewers can continue watching their favorite content without having a disrupted experience.
Benefits of SGAI for Streaming Platforms
SGAI has several advantages over other options, particularly regarding ad delivery and revenue generation. It brings the best of both the CSAI and SSAI without the headache of their flaws. Here is a breakdown of the benefits and what it can do to help generate more revenue:
Benefits for playback
- Improved user experience:
- SGAI ensures a more seamless transition between content and ads, reducing the likelihood of buffering or delays, which keeps viewers happy and engaged.
- Enhanced ad personalization:
- Since SGAI allows for real-time ad selection, ads can be more relevant to each viewer, leading to higher engagement and better overall ad performance.
- Bypassing ad blockers:
- Unlike CSAI, where ad blockers are a major challenge, SGAI’s hybrid approach makes it harder for ad blockers to detect and prevent ads, ensuring a higher percentage of ads are delivered.
Benefits for increasing revenue
- Higher engagement:
- Personalized ads are more likely to be watched and engaged with, leading to higher click-through rates and better conversion.
- Increased Ad Viewability:
- By reducing the risk of ad blockers, more ads actually reach their intended audience, which increases impressions and viewability.
- Better Targeting:
- The real-time personalization that SGAI offers leads to more relevant ads, which are not only more likely to be watched but also more valuable to advertisers. This allows platforms to charge higher rates for more effective ad placements.
SGAI vs. SSAI (Server-Side Ad Insertion)
Server-side ad Insertion (SSAI) involves the server stitching ads directly into the video stream before delivering it to the viewer. While this method is effective at avoiding ad blockers, it has limitations in terms of real-time personalization. Since ads are pre-stitched into the stream, SSAI lacks flexibility when it comes to selecting ads based on the viewer’s current context or behavior.
In contrast, SGAI allows for dynamic ad selection and personalization. The server guides the ad opportunities, but the client plays an active role in deciding which ad to display at the exact moment of playback. This real-time decision-making allows for more tailored ads, which are more likely to resonate with viewers and keep them engaged.
SGAI vs. CSAI (Client-Side Ad Insertion)
Client-side ad Insertion (CSAI) relies on the user’s device to handle every part of the ad process, from requesting the ad to playing it. While CSAI allows for interactive or clickable ads and can offer immediate viewer data, it is more prone to issues like buffering, noticeable transitions, and, more importantly, ad blockers. Because the client manages the entire process, ad blockers can easily detect and prevent ads from being shown.
SGAI reduces these risks by distributing responsibilities between the server and the client. The server owns the ad decisioning process to maintain a scalable and refined experience, while the client takes care of stitching the ad in alongside the main content at the right moment. This results in a more continuous experience for viewers and significantly reduces the chances of ads being blocked, making it a more reliable solution than CSAI.
Detailed breakdown of each ad insertion method
To get a better understanding of how SGAI compares to other ad insertion methods, here’s a breakdown of key features across CSAI, SSAI, and SGAI and what they do for the user experience:
| Feature | CSAI (Client-Side Ad Insertion) | SSAI (Server-Side Ad Insertion) | SGAI (Server-Guided Ad Insertion) |
| Ad Delivery Control | Handled entirely by the client. | Handled entirely by the server, stitched into content. | Medium complexity combines the best of both methods. |
| Ad Personalization | Shared between server and client; server decides, and client stitches and plays. | High. It can support dynamic, real-time targeting. | High. Ads are chosen dynamically based on real-time data. |
| Ad Blocker Vulnerability | High. Ads are easily detected and blocked. | Low. Ads are stitched directly into the content stream. | Low. More resistant to ad blockers than CSAI |
| Seamless Ad Experience | Prone to slow transitions and buffering. | Smooth playback. Ads are part of the content stream. | Smooth playback with real-time client-side ad insertion. |
| Interactive/Clickable Ads | Supports interactive and clickable ad formats. | Does not typically support clickable ads. | Supports interactive and clickable ad formats like CSAI but with an even more flawless experience |
| Ad Targeting | Real-time, but can experience delays.. | Limited. Targeting happens before the content is streamed. | Real-time, dynamic targeting with smooth transitions. |
| Viewer Data Collection | High. Provides detailed insights into user behavior. | Lower. Since ads are stitched server-side, there are fewer real-time metrics. | High. Collects detailed data, balancing real-time ad insertion and performance. |
| Impact on Viewer Experience | It can interrupt viewing with buffering or slow transitions. | TV-like experience; seamless transitions. | TV-like experience, plus more personalized ads with fewer interruptions. |
| Ad Impressions Efficiency | Vulnerable to ad blockers and skips with wasted impressions. | High. Ads are pre-stitched and less likely to be skipped or blocked. | High. As this is the best of both, it can result in a more efficient use of ad inventory. |
| Technical Complexity | High server-side complexity. However, it results in seamless playback. | High server-side complexity. However it results in seamless playback. | Medium complexity. It combines the best of both methods. |
Wrapping up
SGAI is being talked about more and more in the industry, especially at IBC, with many streaming platforms showing interest in how it can improve their ability to generate more revenue and keep their viewers engaged. By combining the best aspects of client-side and server-side approaches, SGAI ensures better ad transitions, personalization, and a stronger defense against ad blockers that typically make platforms get creative so they can still earn from their content. For streaming services aiming to boost ad revenue while keeping viewers happy, SGAI offers an effective solution that enhances engagement and monetization. This is why platforms adopting SGAI will be well-positioned to provide a premium, uninterrupted experience while maximizing their advertising potential.
