Not Yet Live With DAI? Here is How Much Revenue You Are Losing Every Day

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With growing consumer expectations and increasing competition, it’s getting harder to capture new audiences and retain existing ones, while still making a profit from subscription revenues. You need to find new monetization streams – and make sure they don’t disrupt the viewing experience.

Dynamic Ad Insertion (DAI) is one obvious solution. More specifically, Server-Side Ad Insertion (SSAI) is technology to insert pre-, mid- and post-roll addressable ads in all watch modes: live, catch-up and VOD. It also allows you to insert ads on any HLS or DASH compliant device. SSAI is superior to Client-Side Ad Insertion in the sense that it is able to replace ad breaks in live streams with personalized ads while ensuring frame-accurate insertions. Another benefit of SSAI is that it overcomes ad blockers and ensures ads are viewed even on devices with ad blockers installed. In plain English, SSAI is the right technology to monetize all your video inventory on all screens.

To estimate how much revenue can be generated from SSAI:

The average consumer watches around four hours of video content per day*. The norm in our industry is to have an ad load of eight minutes per hour (i.e. 480 advertising seconds for each hour). And 30 seconds is slowly becoming the standard ad duration in many countries.

If you are a service provider, you can calculate the following numbers to size your advertising inventory:

  • Total yearly watch hours per viewer = 4 hours per day X 365 days per year = 1,460 hours/year
  • Ads viewed per hour per viewer = 480 seconds per hour / 30 second slots = 16 ads per hour
  • Total ads viewed per year per viewer = 1,460 X 16 = 23,360 ads per viewer per year

North America

For the USA and Canada, advertisers on average pay around $25 for every thousand ad views on studio-grade content**. This price is commonly referred to as the Cost Per Mille (CPM) price. This price can go up to $50 for premium sports content***, but let’s use the $25 price point in this calculation to keep it on the conservative side.

Revenue from advertising per viewer per year in North America = 23,360 ads per year X $25 for every 1000 ad views = $584 per year

In North America, SSAI can generate $584 per subscriber per year

That is to say that each North American subscriber can generate $1.60 daily revenue with SSAI.

If you don’t have quick access to a calculator, the following table should help you get a feel for how much revenue you are losing from all your subscribers per year if you aren’t using SSAI yet:

North American SSAI Revenue Estimations

Number of Subscribers50,000100,000200,000300,000500,0001 Million2 Million5 Million
Advertising Revenue Per Subscriber Per Year$584$584$584$584$584$584$584$584
Total Advertising
Revenue Per Year
$29,2 Million$58,4 Million$116,8 Million$175,2 Million$292 Million$584 Million$1,168 Billion$2,92 Billion

Europe

European advertisers on average pay around $15 for every thousand ad views. Plugging in this number in the above equation leads us to:

Revenue from advertising per viewer per year in Europe = 23,360 ads per year X $15 for every 1000 ad views = $350.4 per year

In Europe, SSAI can generate $350 per subscriber per year

That is to say that each European subscriber can generate $0.95 daily revenue with SSAI.

European SSAI Revenue Estimations

Number of Subscribers50,000100,000200,000300,000500,0001 Million2 Million5 Million
Advertising Revenue Per Subscriber Per Year$350$350$350$350$350$350$350$350
Total Advertising Revenue 
Per Year
$17,5 Million$35 Million$70 Million$105 Million$175 Million$350 Million$700 Million$1.75 Billion

Latin America

In Latin America, advertisers on average pay around $5 for every thousand ad views.**

Revenue from advertising per viewer per year = 23,360 ads per year X $10 for every 1000 ad views = $116.8 per year

In Latin America, SSAI can generate $116 per subscriber per year

That is to say that each Latin American subscriber can generate $0.32 daily revenue with SSAI.

Latin America SSAI Revenue Estimations

Number of Subscribers50,000100,000200,000300,000500,0001 Million2 Million5 Million
Advertising Revenue Per Subscriber Per Year$116$116$116$116$116$116$116$116
Total Advertising Revenue 
Per Year
$5,8 Million$11,6 Million$23,2 Million$34,8 Million$58 Million$116 Million$232 Million$580 Million

Asia

Similarly to Latin America, Asian advertisers on average pay around $5 for each 1000 ad views.

Revenue from advertising per viewer per year = 23,360 ads per year X $10 for every 1000 ad views = $116.8 per year

In Asia, SSAI can generate $116 per subscriber per year

That is to say that each Asian subscriber can generate $0.32 daily revenue with SSAI.

Asia SSAI Revenue Estimations

Number of Subscribers50,000100,000200,000300,000500,0001 Million2 Million5 Million
Advertising Revenue Per Subscriber Per Year$116$116$116$116$116$116$116$116
Total Advertising Revenue
Per Year
$5,8 Million$11,6 Million$23,2 Million$34,8 Million$58 Million$116 Million$232 Million$580 Million

So what does this mean in terms of your potential revenues? Well, that depends. SSAI-generated revenue will be split between the content and service providers. Content owners usually demand a cut from this revenue as it is their content that is getting monetized. The revenue split percentages between service and content providers vary depending on the type of content and the strength of the service provider in negotiating a deal with the rights owners. Plug in your expected percentage to see how much money you could be making!

Cutting a long story short, you should be taking SSAI seriously.

* https://cdn.ihs.com/www/pdf/IHS-Markit-Cross-Platform-Viewing-Time-Report.pdf

** https://monetizepros.com/cpm-rate-guide/video/

*** https://www.simantel.com/are-super-bowl-ads-worth-it/#:~:text=If%20we%20take%20the%20total,%2458.30%20for%20every%201%2C000%20viewers.

**** 1000 ad views prices based on average continental price for direct sold campaigns