Ad Measurement: The Key to Maximizing OTT Ad Revenue
As streaming grows across OTT environments, sophisticated dynamic ad insertion models are expected to meet a widely varying range of viewer and broadcaster expectations. However, well-executed ad insertion alone does not determine success. The real driver of value is proving that ads are actually seen and understanding on a granular level how an ad has been consumed.
Measurement is the foundation of trust in the ad-funded streaming economy. Advertisers seek transparency, publishers rely on predictable revenue, and platforms want efficiency. None of these goals can be reached solely through ad insertion. Measurement, especially as new standards aim to simplify how engagement is captured across devices, is central to sustainable monetization.
Why insertion alone does not pay
A lot of focus is often placed on getting ad stitching right. Inserting an ad doesn't equal an impression, and most advertisers pay per thousand impressions (CPMs). When the first frame of an ad is seen, the player should fire a beacon. It is this beacon that we call an impression. Beacons, such as quartiles (25/50/75) and a completion, measure the user's playback progress. While other beacons, such as mutes, pauses, or skips, provide information about actions that the user has taken while playing the ad.
Measurement should not be considered an add-on. It is essential to prove what was delivered and how the viewer interacted with it. It confirms to the advertiser who bought the slot whether the ad was viewed and how users interacted with it. Without measurement, there is simply no revenue.
How does measurement work?
Measurement is built on tracking URLs, commonly called pixels or beacons. They may include dynamic tokens that the player or server fills in at the moment of firing, such as device type or timestamp.
Two broad categories of measurement support the ad ecosystem.
Standard Measurement
Standard metrics include:
- Impressions (an ad start).
- 25%, 50%, and 75% quartiles.
- Ad completions.
- Interactions such as mute/unmute, full or reduced screen, click-throughs, skip, paused, or resumed.
These signals confirm delivery and help advertisers understand whether the ad creative is performing as intended.
Enhanced measurement
Enhanced measurement adds context, such as:
- Whether the ad was fully visible or if anything was covering it.
- How much screen space an ad occupies.
- Whether audio was enabled and the volume level.
Advertisers use these features to evaluate the impact of the ad creatives and optimize spending.
The measurement chain
Each impression touches multiple companies. The publisher owns the inventory. The ad server handles ad decisions. Supply-side platforms (SSPs) package inventory for sale. Demand-side platforms (DSPs) represent advertisers who bid on placements. Each party requires confirmation that its part of the process occurred. One ad impression may trigger multiple tracking events, and missing data at any point can affect revenue, pacing, and trust.
The difficulties of measurement in CSAI, SSAI, and SGAI
With client-side ad insertion (CSAI), the player knows exactly which assets are ads and can fire beacons directly. Server-side ad insertion (SSAI) and server-guided ad insertion (SGAI) work differently.
In SSAI, ads are stitched into the stream before reaching the device, so the player cannot automatically recognize where the streaming content ends and an ad begins.
In SGAI, the server provides a main manifest that includes a link to an alternative manifest (an interstitial). The player will then manage the switch between the main manifest (content) and the alternative manifest (ads). Hence, while the player will be aware that a different stream is shown to the user, he doesn’t know what that stream is displaying.
Some vendors offer SDKs or other tracking capabilities, while others leave measurement to the publisher. Device diversity adds another layer of complexity, and HLS and MPEG-DASH represent time differently across devices. Small timing differences can lead to inaccurate reporting and subsequent lost revenue.
Emerging standards for better measurement
Two emerging standards aim to reduce fragmentation and make measurement more consistent: SVTA’s Ad Creative Signaling and CTA’s CMCDv2.
SVTA ad creative signaling
Created by the Streaming Video Technology Alliance, this standard defines a JSON-based method for communicating ad metadata to the player. The information can be delivered within the manifest or through an external file. Version 2 covers events such as impressions, quartiles, and completions. The future version (version 3) will extend support to companion and non-linear ads.
This approach reduces custom development and makes implementations more portable across devices. It gives players the information they need without relying on specialized SDKs.
Common Media Client Data v2 (CMCDv2) client-guided tracking
CMCDv2 takes a different approach. Instead of having the device call tracking pixels, the player reports playback state information to a CMCDv2 measurement endpoint. The endpoint then fires the required tracking events.
This method offers several benefits:
- Ad blockers cannot interfere, since tracking does not originate from the device
- Devices with limited processing power can still support full measurement
- Privacy is easier to implement
- Integrations are consistent across diverse platforms
- Ad measurement logic is fully implemented server-side.
CMCDv2 is especially useful when content is syndicated or when publishers have limited control over the playback environment.
Understanding viewability
Impression tracking shows that an ad was played. Viewability measurement helps determine whether the viewer had a real opportunity to watch it. The IAB’s Open Measurement SDK (OMSDK) provides a standardized way to report visibility, screen coverage, audio levels, and other indicators that influence attention.
Every platform implementation must be certified by the IAB. This ensures consistent reporting across web, mobile, and CTV, which advertisers increasingly expect as part of any modern campaign.
Measurement builds trust and revenue
Reliable measurement strengthens every part of the ecosystem. Advertisers increase their investment when they trust the data. Publishers earn higher CPMs and manage inventory more effectively. Platforms reduce integration costs and support more environments. Viewers benefit from better-targeted ads and fewer delivery issues.
Standards like SVTA Ad Creative Signaling and CMCDv2 will help the industry move toward a more unified, transparent, and accurate measurement landscape. Progress will not be immediate, but using a combination of approaches will help cover more devices and use cases.
In conclusion, while ad insertion sets up the opportunity, measurement proves the value. Ad insertion alone doesn’t pay; ad measurement does.
[Editor's note: This is a contributed article from Yospace. Streaming Media accepts vendor bylines based solely on their value to our readers.]
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