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Server-side ad insertion is a combination of manifest manipulation, ad server communication, and ad bitrate and resolution normalization, all of which happens on the server-side before presenting a manifest to clients. Server-side ad insertion may also be referred to as dynamic ad insertion, or ad stitching.

By whatever name it is known, server-side ad insertion is difficult to get right for numerous reasons:

Server-side ad insertion requires a highly scalable origination service
Personalized manifests are not cacheable
Reporting and custom player behavior requires clients to know an ad has been played
Different ad standards (VAST, MAP), ad servers, origin servers, and player environments complicate server-side ad insertion workflows
To cope with fluctuations in demand for just-in-time server-side ad insertion, a highly scalable architecture is required – particularly for broadcasters that must deal with the sharp peaks in demand that breaking news, sports events and popular TV series bring. Cloud-based video processing with a server-side ad insertion integration is one way broadcasters can scale to meet audience demand.

When events are underway, the number of concurrent viewers can vary greatly and unpredictably. For example, viewership for a closely played game may remain steady for much of the contest, then surge by hundreds of thousands of new viewers during the last few minutes.

The key to managing viewer variances is in encoding and packaging that can be virtualized for rapid deployment and hosted in a cloud infrastructure for quick auto-scaling.

Because dedicated single path hardware encoders and packagers lack flexibility, the practical solution is to spin up instances of cloud-based video processing as they are needed. The cloud is uniquely well suited to creating millions of individually tailored manifests of content and advertising for live-streamed events.

Users stream video or OTT content on internet-enabled devices via content delivery networks (CDNs). When a user reaches an ad break, the SSAI server requests ads from third-party ad servers. The SSAI server then stitches those ads – at the same bitrate, frame rate and audio level as the underlying stream – directly into the content, which is passed back to the viewing device via the CDN.