With subscription fatigue setting in and the appetite for streaming video stronger than ever, Free Ad-Support Streaming television allows more digital publishers to broaden the reach of their content libraries to wider audiences across devices. If you’re a content publisher, using FAST channels as a distribution mechanism and monetization channel for your content is part of a well-rounded content strategy. While just a few years ago there were only a handful of FAST channels available on your preferred streaming platform, today we see hundreds of if not thousands of FAST channels available, from individual publishing platforms as well as third-party streaming services. Those channels are being powered by Ads, hence Free Ad-Supported Streaming Television. The amount of ads being placed (or impressed) on these streams is in the trillions.
Imagine for a moment you were responsible for all those impressions, counting, validating and valuing. Thankfully no one person is responsible for managing all those data points. However, it's very possible that one person is managing one or more of those streams and impressions and is responsible for counting and validating that data. With lots of ad revenue and desirable impressions at stake, it’s important to make sure that expectations are aligning with the tools in your toolbox. So how does one ensure that the impressions they expect match the data they expect to receive?
Understanding the Ad Insertion Workflow and its Contributions to Ad Impressions
Understanding what to expect when it comes to ad impressions can help your company predict costs and returns by clarifying how ads are placed and why budgeting for ad placement can be challenging.
To understand Ad Impressions, you need to first understand the different components of the Ad Insertion workflow. Let's start by defining a few of the Ad Impression terms we’re going to refer to today, to ensure full understanding.
What Are Ad Tags?
Ad tags are lines of HTML or JavaScript code that allow websites (or, in the case of video, streaming platforms) to request content, advertisements, and other customizations from ad servers. In a video streaming workflow, ad tags help facilitate the integration of ads into a video player, providing an essential bridge between content publishers, advertisers, and the ad server. These tags are responsible for delivering ads in a format that is compatible with the video player and the user's device.
What are SCTE-35 markers?
In linear streaming, ad tags are typically scheduled using SCTE-35, a digital program insertion cueing message for cable. The SCTE standards organization defines SCTE 35 as “the core signaling standard for advertising, Program and distribution control (e.g., blackouts) of content for content providers and content distributors.”
This standard provides a duration for the ad spot, allowing SCTE-35 markers to seamlessly integrate ads into the stream. Unlike Client-Side Ad Insertion (CSAI), where content pauses for an ad and then resumes, SCTE-35 enables a smoother viewing experience by stitching ads directly into the stream.
The Role Ad Tags and SCTE Play in Video Streaming Workflows
The use of these different ad tags can impact the actual number of ads being placed. In video streaming, ad tags are often used in conjunction with Video Ad Serving Template (VAST) and Video Player Ad Interface Definition (VPAID) protocols.
As defined by the iab, VAST (Video Ad-Serving Template) protocols provides a “Template for structuring ad tags that serve ads to video players. Using an XML schema, VAST transfers important metadata about an ad from the ad server to a video player.” VAST tags were launched in 2008, and since then have played an increasingly important role in digital video workflows.
The other commonly used protocol specification, VMAP (Video Multiple Ad Playlist), is defined by the iab as “an XML template that video content owners can use to describe the structure for ad inventory insertion when they don’t control the video player or the content distribution outlet.”
These VAST and VMAP protocols ensure compatibility between video players and ads, allowing for smoother ad playback and better reporting of key metrics such as ad impressions.
So how do these ad tags play into your streaming workflow? In a live streaming workflow, an ad tag is triggered when an ad break occurs during the stream. The video player sends a request to the ad server via the VAST or VMAP ad tag, and in response, the ad server delivers the appropriate ad that is stitched into the live stream in the slot designated by the SCTE-35 marker. In VOD, this works similarly—before or during the playback, the player makes a call using the ad tag to fetch an ad and insert it at the designated time.
How to Calculate Ad Impressions
With the basic definitions behind us, now let’s move on to calculating ad impressions and take a look at some examples.
1 Ad Tag Equals 1 Ad Impression
For many of you this is nothing new, but for some of you this may be an eye opening read.
Many people assume a straightforward 1:1 relationship between ad tags and impressions, leading to unexpectedly high monthly bills for ad placement. The following examples illustrate how Ad Tags can generate single impressions that align with a 1:1 ad placement concept.
Calculating CPM
There are a number of variables that contribute to the formula for calculating Total CPM Costs.
For example the most obvious is the number of Viewers watching the stream during any given Unit of Time. A Viewer is someone/something that opens the stream and continues to stream for the duration of the Unit of Time. For our first example below we will use 1 Viewer.
A Unit of Time is a standard interval of time used to measure or express duration. A commonly used and practical unit of time we will use for this example is 1 hour.
Presuming that we have a 1:1 (for 1 Ad Spot 1 Ad Impression), we can use an abstract number of Ad Spots per Unit of Time for our examples below.
Now, using the variables from above we can begin to understand the Total Ads Per (Unit of Time) we can expect. This can be done by inputting the above variables into this formula:
- Viewers * Per Hour Ads * Hours = Total Ads Per Hour
This allows us to move to the next step and determine what the Total CPM count is. The Total CPM Count makes it easier to build our formula and help customers understand what to expect. To accomplish this we execute the following formula:
- Total Ads Per Hour / 1000 == Total CPM Count
Using the Total CPM Count and a Per CPM Cost we can now complete the final step and ascertain what the Total Costs would be for the total amount of ads actually played during the 1 hour Unit of Time.
- Per CPM Cost * Total CPM Count == Total Cost
Here is an example table of the above calculations:
Here is an example table of the same calculations using additional Viewers:
The 1:1 ad placement concept definitely makes predicting costs much easier. If you can control your Ads per Hour and have an understanding of your average Viewer per Hour you can achieve the above.
Now, let's learn how it can get difficult to fully predict what your Total Costs may be when you are not able to expect the 1:1 ad placement concept.
The Complexity of Ad Impressions
So, you have a stream. You have an Ad Tag. That Ad Tag is a VMAP Tag containing multiple Ads. You have 1 single Ad Spot available in your stream. How many Ads are impressed?
This is where it can get tricky.
You still know your Viewers, your Unit of Time and the Ad Spots per Hour values. What changes here is the Total Ads Per Hour as we are now introducing a new Variable. Actual Ad Count per Ad Spot.
Ad Spots can be filled in many ways, including based on the Ad Count and the length of the Ad Spot. As an example, let's say we have 120 seconds of a single Ad Spot to fill. We can fill that Spot in many ways. To clarify this concept, the following examples illustrate how VMAP ad tags can generate multiple impressions. It also shows how the duration of ad spots can be utilized to fill those spots with various ads.
Definitions:
- AR = Ad Requests (Request for Ads from Ad Service)
- AC = Ad Count (Actual Ads included in 1 Ad Request)
To calculate the Total AC, we use the following formula;
- AC per AR * AR Per Hour * Actual Hours = Total AC
For the following examples we include a small table to showcase how each is calculated. All of the examples below fill a 120 second Ad Spot, 5 Ad Requests with a different amount of ads actually impressed (or Ad Count). 1000 Viewers were used consistently for each example as well as 1 Hour Unit of Time.
Example: All 15-second Ads:
- 8 Ads x 15 seconds = 120 seconds
Example: Mix of 15 and 30-second ads:
- 2 x 30 seconds + 4 x 15 seconds = 120 seconds
- 3 x 30 seconds + 2 x 15 seconds = 120 seconds
Example: Mix of 15 and 60-second ads:
- 1 x 60 seconds + 4 x 15 seconds = 120 seconds
- 1 x 60 seconds + 2 x 30 seconds = 120 seconds
Example: Mix of 30 and 60-second ads:
- 1 x 60 seconds + 2 x 30 seconds = 120 seconds
- 2 x 60 seconds = 120 seconds
Conclusion
In conclusion, ad placement in linear channels such as Free Ad-Supported Streaming Television (FAST) environments can be complex, but understanding its intricacies is key to managing both costs and expectations.
By familiarizing yourself with the ad insertion workflow, key protocols like VAST and VMAP, and the various factors that impact ad impressions, you can develop a more predictable and strategic approach.
Whether it's calculating simple 1:1 ad impressions or navigating more complicated ad requests and spot lengths, a clear understanding of these dynamics ensures that you can optimize your ad strategy for maximum revenue while keeping costs under control.
Do you need help implementing your linear channel advertising strategy? The Zype team is here to help. Request a demo of the Zype Platform to speak with one of our experts to understand how Zype can help you achieve your video streaming goals.