In-stream ad insertion is a revolutionary technology for seamless television advertisement replacement. TV providers set targeting parameters and select a new commercial to insert within the video feed.
SPB TV has been developing ad replacement for several years, and was awarded the “TV Technology Europe STAR Awards” in 2012.
Advertising substitution takes place on the server, which ensures the smoothness and continuity of the broadcast for viewers on all screens: mobile devices, PCs or TVs.
This approach benefits all parties involved, such as broadcasters and TV channels looking for new audiences and increasing their ad sales, advertisers improving performance and cutting costs, and, of course, TV-providers.
In spite of its obvious advantages, legal in-stream ad replacement was only applied to the Russian market in the beginning of 2017.
One of the obstacles to its deployment was the controversy between TV-channels/broadcasters and independent OTT-services. As we know, legal distribution of a TV-channel over the Internet requires a special stream, licensed specifically for the OTT environment. However, not all TV-channels can provide such a stream.
Concurrently, in the aim of expanding their audience, independent OTT-providers carried over-the-air versions of TV-channels, under the cable operators’ license. In response, TV channels have repeatedly pointed out that the existing legislation does not give any Internet TV service the right to broadcast over-the-air content on the Internet.
Without collaboration with OTT-platforms, broadcasters missed main OTT advantages – digital TV viewing data.
Finally, a three-way dialog betweenChannel One, National Service Company and SPB TV was the push to overcome this situation. As the result, a joint project for the legal in-stream ad replacement was launched on the SPB TV advertising platform – SPB TV AD Expert.
As of now, in-stream ad insertion on Channel One is implemented as a pilot study and is available to a limited number of SPB TV app users. However, the commercial launch of the project is planned for the second quarter of 2017.
Reputedly, this joint advertising solution will allow other TV channels, OTT-providers and advertisers to work transparently and follow commercial interests of all sides.