How can targeted ads keep consumers engaged?

By Todd Fantz  |  August 2, 2019

The Asia Pacific (APAC) OTT market is reflecting global trends, with subscription and online ad revenues expected to double by 2024. Despite this, APAC markets are also seeing piracy increasing, with many people turning to illegal sites to watch free content as opposed to paying for video-on-demand services. Can targeted advertising help engage price-conscious markets? And how can technology keep customers interested and engaged in AVOD?

Relevant content keeps consumers interested 

A lot of viewers are happy to watch ads in order to access quality content at a reduced cost. However, to maximize advertisers’ return on investment and make ad space valuable, consumers must be engaged with the ad content they’re watching. Targeted advertising campaigns make sure that the right consumer is seeing products and services that are relevant to them. The increased engagement not only improves ad conversion rates but watching relevant content improves the viewer experience and keeps people engaged with the ad-based service.

Are targeted ads easy to implement?

Of course, there are technical matters to consider when implementing addressable ad technology and most broadcasters are challenged to activate their ad inventories for targeted advertising. This targeted ad replacement needs to happen instantly to maintain a great viewer experience, and it’s hugely important that the data is delivered to the correct distribution partners accurately and securely.

Unfortunately, SCTE 35 signalling used for this process can be disturbed in distribution, with the result of ads not being processed correctly; ad slots could be left unfilled or filled with slates, resulting in monetary loss to broadcasters and a poor viewing experience for customers.

To eliminate the chance of disturbed signalling data, ad technology solutions should generate both in-band and out-band metadata as well as be able to synchronise that signalling at remote distribution points with playout timing to ensure accurate ad insertion.

Also complicating things is the varying interpretations of the STCE 35 protocol by both content providers and distributors. Software that normalizes this metadata greatly helps – you can play content from one source to multiple distributors providing each with the profile that meets their needs.

What’s also very useful is combining information from playout automation, traffic and MAM systems plus programmer’s rules to deliver contextual metadata that’s an accurate depiction of the playing linear ads and program segments.

Why effective ad inventory management can maximize ad revenue 

Managing ad inventories provides the required data to distributors, allowing broadcasters and their partners to maximize revenue from advertising opportunities. The correct management of signalling data paired with contextual information, such as program synopsis, guest details or genre information, provides advertisers with tangible opportunities to present relevant ads to customers. Along with a boost in ad revenue for broadcasters, advertisers see higher engagement with their campaigns and consumers receive a tailored AVOD service with content that gains their interest, promotes engagement and increases the overall user experience.

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