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January 23, 2026

How Video Streaming Is Transforming the Advertising Ecosystem

By

24i Team

,

Featured image for "How Video Streaming Is Transforming the Advertising Ecosystem" knowledge base

Key takeaways:

  • The advertising ecosystem has evolved from linear TV and static placements into a data-driven adtech ecosystem powered by automation, analytics, and streaming innovation.
  • Video streaming platforms—especially AVOD, FAST, and hybrid models—now sit at the center of the digital advertising ecosystem, reshaping how audiences are targeted and monetized.
  • Advertisers value streaming for its precision, first-party data, and real-time measurement.
  • Platforms built on flexible, data-driven architectures—such as 24i Video Cloud—are better equipped to integrate advertising without compromising user experience.

The advertising ecosystem once revolved around traditional television, print, and display ads. Today, it has evolved into a complex, interconnected network of technologies, platforms, and data exchanges—commonly referred to as the adtech ecosystem.

As audiences increasingly consume content through connected TVs, mobile apps, and on-demand platforms, video streaming has become a critical force in reshaping the digital advertising ecosystem. This article explores how streaming innovation is transforming advertising from rigid, linear schedules into personalized, data-driven experiences that benefit brands, platforms, and viewers alike.

Understanding the modern advertising ecosystem

At its core, the advertising ecosystem is a network of stakeholders working together to deliver ads to the right users at the right time. It typically includes:

  • Advertisers that fund campaigns
  • Publishers that own digital real estate such as apps, websites, or streaming platforms
  • Ad exchanges where inventory is traded programmatically
  • Demand-Side Platforms (DSPs) used by advertisers to buy impressions
  • Supply-Side Platforms (SSPs) that help publishers manage and sell inventory
  • Data and analytics platforms that collect and activate audience insights

Within the broader ad ecosystem, automation is essential. Real-time bidding, machine learning, and cross-device analytics enable advertising at scale. This results in an ads ecosystem where performance is measurable and continuously optimized—capabilities that are especially valuable in streaming environments.

The rise of video streaming in the ad ecosystem

Video streaming has fundamentally shifted where advertising budgets are allocated. While linear TV remains relevant, a growing share of spend is moving toward digital video formats such as:

  • AVOD (Advertising Video on Demand), where free content is funded by ads
  • FAST (Free Ad-Supported Streaming TV), delivering linear-style channels over IP
  • Hybrid models, combining subscriptions with limited advertising

Unlike traditional broadcasting, streaming platforms enable granular audience targeting using first-party and behavioral data. Advertisers can segment audiences by interests, context, device, or real-time viewing behavior—capabilities that are difficult to achieve in linear TV.

As a result, streaming has become a central pillar of the modern advertising ecosystem, offering greater accountability, flexibility, and measurement for brands.

Why video streaming is attractive to advertisers

Streaming platforms appeal to advertisers for several key reasons:

Highly engaged audiences

Streaming viewers actively choose what and when to watch, leading to higher attention and ad completion rates compared to passive television viewing.

Granular targeting with first-party data

Streaming services collect direct user data—such as behavior, preferences, and device usage—enabling precise audience segmentation within the digital advertising ecosystem.

Real-time performance measurement

Advertisers gain access to immediate insights on impressions, completion rates, and conversions, allowing campaigns to be optimized continuously.

Interactive and shoppable formats

Modern adtech supports interactive video ads that blend content and commerce, making advertising part of the experience rather than a disruption.

Together, these capabilities position streaming as one of the most effective channels within today’s adtech ecosystem.

How video platforms fit into the adtech ecosystem

Streaming platforms integrate into the adtech ecosystem through a combination of infrastructure and standards that enable scale and efficiency.

Server-Side Ad Insertion (SSAI)

SSAI delivers ads directly from the server, improving playback quality and reducing ad-blocking issues across devices.

Header bidding

Header bidding increases competition among ad buyers, helping publishers maximize yield while offering advertisers premium inventory.

Programmatic advertising

Programmatic buying automates transactions between DSPs and SSPs, ensuring ads are delivered efficiently and at scale.

Solutions like 24i Advanced Advertising offer a data-driven ad stack that unifies SSAI, CSAI, and SGAI with audience intelligence, privacy compliance, and attribution—designed to maximize revenue without compromising the viewer experience.

Challenges in the streaming ads ecosystem

Despite its advantages, the streaming ads ecosystem faces several challenges:

  • Ad fatigue and skip behavior when ad loads are poorly balanced
  • Ad fraud and viewability issues, requiring transparency and verification
  • Privacy and regulation, with frameworks such as GDPR and CCPA shaping data usage
  • UX vs monetization trade-offs, where over-monetization risks churn

Leading platforms increasingly rely on AI-driven optimization and contextual targeting to address these challenges without degrading the viewing experience.

The future of the digital advertising ecosystem

The future of the digital advertising ecosystem will be shaped by convergence and intelligence:

  • AI-powered personalization for more relevant ad delivery
  • Dynamic ad insertion that adapts in real time
  • Contextual targeting as third-party cookies decline
  • Commerce integration, including shoppable and interactive video
  • Cross-platform measurement across CTV, mobile, and web

As these trends accelerate, streaming platforms that combine data, personalization, and advertising infrastructure will play a central role in the next phase of adtech evolution.

Streaming as a core pillar of the ads ecosystem

Video streaming is no longer just a content distribution channel—it is a foundational pillar of the modern advertising ecosystem. By enabling targeted, measurable, and scalable advertising, streaming platforms bridge the gap between content, technology, and commerce.

Solutions like the 24i Advanced Advertising solution bring ad delivery, data enrichment, consent management, and campaign attribution together in one unified solution.

By connecting content metadata, user context, and viewing behavior, it enables smarter targeting, higher-value ad inventory, and better outcomes for both viewers and advertisers.

FAQs

What is the advertising ecosystem?

The advertising ecosystem is the interconnected network of advertisers, publishers, ad exchanges, DSPs, SSPs, and data platforms that work together to deliver and optimize digital advertising.

How is video streaming changing the ad ecosystem?

Video streaming enables data-driven targeting, real-time measurement, and programmatic efficiency, reshaping how advertising performs within the digital advertising ecosystem.

What technologies power the adtech ecosystem?

Core technologies include server-side ad insertion (SSAI), header bidding, and programmatic advertising, all of which enable scalable and automated ad delivery.

Why do advertisers prefer streaming platforms?

Streaming platforms provide rich first-party data, engaged audiences, and measurable performance, making them highly effective within the ads ecosystem.

What are the biggest challenges in streaming ads?

Key challenges include ad fatigue, fraud, privacy compliance, and balancing monetization with user experience.

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