Technology

How Dynamic Ad Insertion Optimizes CTV Advertising

Kristaps Safranovs / July 18, 2023

Dynamic ad insertion is merging the best of linear TV and digital advertising to optimize CTV. But existing ad platforms struggle with the complexity required for dynamic ad to truly transform CTV advertising. By innovating in AI and machine learning, dynamic ad can unlock the full potential of CTV.

Connecting The Contextual Power of TV With The Precision of Digital

Television advertising drives engagement through emotional storytelling and contextual placement. Popular slogans become cultural touchpoints. Digital display prioritizes efficiency through audience targeting. But it lacks the memorability of TV.

CTV combines the precision of digital with the emotion and reputation of TV advertising. But current ad platforms built for simpler digital models often lack the capabilities to effectively leverage both audience and contextual data for optimal CTV advertising.

The Challenge of Complexity in Dynamic Ad Insertion

Delivering optimized dynamic ad placements in CTV requires split-second decision making across millions of queries. The complexity comes from factoring in audience data, context, timing, ad frequency, and more. Ad platforms need advanced AI and machine learning to digest the robust data involved in dynamic ad insertion.

Many CTV ad platforms were built for less complex digital display models. They struggle to handle the nuances of blending linear TV contextual targeting with digital audience precision. Without innovations to address this complexity, dynamic ad will fail to transform CTV advertising.

Scaling AI and Machine Learning to Unlock The Full Potential

The key is building advertising platforms purpose-built for CTV’s unique complexity. By leveraging bleeding-edge AI and machine learning innovations, dynamic ad insertion can optimize both audience and context at scale. This will enable advertisers to connect with precisely the right audiences in exactly the right programming environments.

The payoff will be greater efficiency and performance for advertisers while opening up new monetization for CTV publishers. For local media like TV3, it unlocks both new revenue streams and added value for advertisers through better dynamic ad targeting. Advertiser spend can shift from global players to local media powered by optimized dynamic ad insertion.