How Can Video Streaming Platforms Overcome the Problem of Ad Blocking?

Ad blocking is a browser extension that removes advertisements on a web page.

10:31 23 January 2023

Ad blocking is a browser extension that removes advertisements on a web page. Publishers and websites dependent on ads have been attempting to somehow fight against ad blockers. They came up with many methods, from paywalls to blocking users who adopted ad blockers. 

It is a vital problem in the video streaming industry. Advertising-based monetization models are getting popular among content providers. They lose a lot when viewers use ad blockers. How can OTT platform holders solve this problem? We have some options. 

What is Ad Blocking?

An ad blocker is usually a browser extension that removes ads from a website or application. Many browsers block ads by default. Some ad blockers have a filter list that points out what to block. 

What are the Problems Ad-Blockers Cause?

In fact, viewers benefit from ad blockers a lot. This software or an extension impacts loading speeds. Moreover, sometimes, ads can lead to malicious websites or be the link for downloading malware. 

Some ads have a code to track users online. Such a code may offer access to cookies to the owner. Cookies may have sensitive information about the user. As a result, ad blockers increase their security and privacy on the Internet. 

What are the problems of ad blockers for a business? One of the most important consequences is loss of revenue. Businesses can lose billions if ad blocker hides their ads and people don’t see them. 

How Can This Problem Be Solved?

There are some options:

#1 Server-side ad insertion (SSAI)

Server-side ad insertion is also known as dynamic ad insertion. It is video delivery into content played on a device compatible with the Internet. 

Viewers stream content with the help of CDNs (Content Delivery Networks). When the video reaches an ad break, the SSAI server transmits ads from third-party ad servers. It stitches the ads directly into the content taking into account a video’s bitrate, frame rate, and audio level. Then, the ad is streamed to the viewer. 

As a result, content and ads look like one continuous stream providing a seamless viewing experience. 

#2 Subscriptions

Ads are essential for those video streaming platforms that generate revenue by advertising. When you use ads, you will encounter viewers using ad blockers. 

To avoid dealing with ad blockers, you can switch to a subscription-based monetization model. In this case, viewers purchase access to video content for a limited period of time. They get access to all videos on the platforms. At the end of the paid period, viewers can renew or cancel their subscriptions. 

#3 Pay-per-view

The pay-per-view monetization model is another way for a business to avoid using ads on the platform. When you use a pay-per-view approach, you offer viewers to pay for every video you have on the service. 

#4 Hybrid model

The hybrid approach allows you to combine several monetization models. You can mix advertising, subscriptions, and pay-per-view however you want. For example, a content provider can offer viewers videos available on a subscription basis and Premium content that requires an additional fee. 

#5 Blocking content from viewers using ad-blockers

Blocking content from viewers who use ad blockers is becoming an effective approach. Instead of a video, a consumer is requested to switch an ad blocker off. Otherwise, the video is not played. 

Final Thoughts

Ad blocking can become an obstacle for video streaming platform providers on their way to revenue-generating. Ad blockers may help clients increase web page loading speeds and protect them from malicious actors. However, content providers lose a lot of income because of them. Luckily, there are solutions that include changing the money-making model or using server-side ad insertion technology.