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An innovation revolution in ad personalisation

Allan Nicholson, senior director, advertising solutions and strategy at Harmonic, looks at how rapid advances in AI, cloud computing and dynamic ad insertion are opening up a world of opportunity in video streaming

In today’s streaming landscape, the demand for personalised viewing experiences is reshaping the way content is delivered and consumed. Personalised video streaming is fuelling more interactive and engaging experiences, particularly for live sports events. Additionally, it is opening up new monetisation opportunities, helping advertisers move beyond traditional full-screen ads to a more engaging advertiser experience using in-stream ads with double-box, squeeze-backs and dynamic side bars. As the demand for personalised video streaming intensifies, AI, cloud and dynamic ad insertion (DAI) have become essential tools driving this transformation.

Allan Nicholson, Harmonic senior director, advertising solutions and strategy
Key technologies fuelling personalised video streaming experiences

AI-powered algorithms that analyse viewing habits, cloud-based solutions for scalable delivery and DAI are driving the personalisation revolution. By seamlessly integrating these technologies into their video delivery workflows, service providers can ensure a smooth, high-quality user experience while unlocking new revenue opportunities.

AI is transforming how streaming platforms personalise content by analysing audience data at a granular level. In the past, viewers would tune into general channels based on their interests, like a fishing channel for fishing enthusiasts. Now, with AI-driven insights, content can be customised to individual preferences within that broad category. For example, if someone in a household enjoys sea fishing specifically, AI algorithms can recommend relevant programmes or clips tailored to this niche interest, directly targeting that viewer’s tastes. By using machine learning to refine these recommendations, streaming platforms are moving beyond one-size-fits-all channels to offer highly targeted content. This not only enhances viewer satisfaction by delivering more relevant content but also creates new monetisation opportunities as advertisers can target specific viewer interests more accurately.

Cloud technology is enabling personalised video streaming experiences at scale by providing the infrastructure necessary to handle the high demand for individualised content and ads. When it comes to personalising ad experiences, cloud-based solutions process numerous individual ad requests, allowing for targeted ad placement and monetisation. This requires the ability to handle bursty traffic patterns, particularly during well-defined ad breaks, and respond to the sudden shifts in viewer demand known as the trampling herd effect. For example, if a large number of viewers switch from one live game to another that is more entertaining, cloud technology can quickly scale to support the unexpected spike in traffic, ensuring a seamless experience for millions of viewers.

Beyond scalability, cloud technology also offers critical features like geo-redundancy, which provides protection against outages. By ensuring high levels of availability and resiliency, cloud infrastructure helps video service providers maintain an exceptional quality experience, with 99.995 per cent reliability. Furthermore, cloud-based video streaming platforms enable service providers to effectively regionalise content by providing the flexibility to store and process user data within specific geographic boundaries, which is essential for complying with data protection regulations such as GDPR in Europe and other country-specific standards. With cloud infrastructure, providers can set up localised data centres that ensure user data remains within a particular country or region, aligning with the legal requirements for data residency. Ultimately, the flexibility, scalability and resilience enabled by the cloud make it ideal for delivering a consistent, personalised streaming experience on a global scale, especially for dynamic content such as live sports events.

DAI is revolutionising personalised video streaming by tailoring ads to each viewer’s unique interests. With a cloud-native, server-side ad insertion solution advertisers can deliver highly relevant content based on individual preferences rather than taking a one-size-fits-all approach. For example, if one viewer has shown interest in triathlons, they might see ads for running shoes and athletic gear, while another viewer that loves tennis could receive ads promoting tennis equipment or apparel. This level of personalisation enhances the viewing experience by ensuring ads are aligned with the viewer’s interests, reducing the likelihood of tuning out during ad breaks. As a result, viewers stay more engaged, feel less ad overload and ultimately the streaming platform benefits from lower subscriber churn.

For publishers, DAI offers more effective and targeted advertising, allowing them to charge higher rates to brands that can directly reach their target audience. This approach moves away from traditional mass marketing models, where ads are shown to a broad audience, many of whom may not be interested. Instead, DAI allows advertisers to reach specific demographics, maximising the impact of each ad dollar spent. Additionally, DAI supports non-intrusive, in-stream advertising utilising split-screen ad formats. These new short-form ad units keep viewers engaged with the main content. This helps avoid ad fatigue and provides publishers with new inventory for monetising events, especially in sports, where high or low action moments of the streamed event can be used to target ads directly or paired with traditional full-screen ads to reinforce brand retention. 

Conclusion

Advances in AI, cloud technology and DAI are revolutionising everything from content recommendations to personalised advertising. These innovations allow streaming platforms to tailor user experiences in real time, improving viewer engagement and satisfaction. By embracing cloud-based video streaming and advertising platforms that leverage AI and advanced targeted advertising methods, such as in-stream advertising, service providers can maximise viewer engagement and monetisation.