Dynamic Ad Insertion 3.0: How new standards are shaping streaming monetization

By Paul Davies, Head of Marketing and Partnerships, Yospace

The broadcast TV industry is entering a decisive phase. Connected TV audiences continue to grow, yet fragmented, operationally complex monetization workflows remain a barrier to growth. Fortunately, we’re moving toward a new era of standards-based interoperability, one of closer collaboration between AdTech and streaming tech.

Standardization will simplify ad delivery, unlock new inventory, and support better advertiser confidence. We’re calling this era Dynamic Ad Insertion (DAI) 3.0.

At DAI 3.0’s heart is Server-Guided Ad Insertion (SGAI), which combines Client-Side Ad Insertion’s flexibility with Server-Side Ad Insertion’s consistency and privacy advantages. Instead of stitching ads directly into content streams, the server instructs the player to fetch ad-sets dynamically and switch between content and advertising.

SGAI is transformative because it brings standardization to DAI for the first time. HLS and MPEG-DASH standards include fully SGAI-supporting features, eliminating proprietary integrations and device-specific engineering (a challenge in today’s diverse device landscape).

Operational benefits are significant. For live-streaming, SGAI reduces computing requirements. It improves support for: long DVR windows, creating additional ad opportunities in “rewind mode”; low-latency ad-based streams without added delay, an advantage for live sports; and reduced start-up times for VOD, with more responsive monetization to add value.

Scalable revenue in streaming requires proof of value. Ad delivery data must also show whether it was seen, heard, completed, and engaged with. While client-based SDKs are the best way to provide this, it’s not always possible or practical to implement them.

The Interactive Advertising Bureau (IAB) has standardized rules for ad trading and delivery, designed to build advertiser trust. The Streaming Video Technology Alliance (SVTA) is developing the SVTA Ad Creative Signalling specification for reliable implementation in HLS and DASH. The Consumer Technology Association (CTA) WAVE’s Common Media Client Data version 2 (CMCDv2) supports measurement, enabling even low-capability players to report standardized data without SDKs.

Combined, these standards will bring a richness to ad data across more devices than before, growing advertiser confidence, and making them likely to invest more.

DAI 3.0 requires this alignment, recognizing that ad measurement (not just ad insertion) drives real value. Broadcasters need more inventory without complex engineering, and advertisers need to scale innovative creatives with consistent measurement.

We are not yet fully at DAI 3.0, but we are getting closer. As these foundations mature, broadcasters will be able to monetize audiences at scale and deliver better experiences for viewers and advertisers alike.

 

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