For some ad buyers and sellers, being able to run targeted ads in live sports is the holy grail. But like the actual holy grail, that’s proved elusive. There are just too many technical risks to speed through all the processing needed to pick out which specific ad to show to a particular viewer without delaying a game’s stream to the point that the viewer ends up getting a notification about the game’s final score midway through the fourth quarter.

Or I should say there were too many technical risks. A newish method for inserting ads into streaming video on the fly — server-guided ad insertion — aims to make targeted ads in live programming much more stable.

WTF is server-guided ad insertion?

Server-guided ad insertion is a way to insert ads into streaming video on the fly while minimizing the need for a video feed to buffer to load the ads.

Aren’t there already other ways to insert ads into streaming video?

Yup: client-side ad insertion and server-side ad insertion.

Client-side ad insertion streams refers to streams in which ads would be delivered to the viewer separately from the stream itself. This can give the advertiser more flexibility in deciding in the moment what ad gets served, but it can also make it take longer for the ad to get served, which could lead to it getting cut off or introduce some level of delay in that viewer’s stream.

Server-side ad insertion streams, by contrast, stitch the ads into the stream itself. That mitigates the latency issue but also limits the ability for ads to be controlled on the fly.

So what’s the point of SGAI?

SGAI is like a middle ground between CSAI and SSAI. It combines CSAI’s on-the-fly insertion with SSAI’s lowered latency. This would enable targeted ads to be inserted into live programming, like sporting events and award shows.

How does that work?

Instead of stitching ads into a video feed when it first loads or, a streaming service using SGAI would send instructions to its app on a given viewer’s connected TV outlining where the ad breaks will be in the stream. These instructions come in the form of what’s called a manifest that contains markers for the ad breaks. Then — instead of pausing playback to insert ads when an ad break appears — the CTV app would be able to see when an ad break is coming up and send a request to the streaming service’s ad server for the ad(s) to insert in that break.

But how does that work for a live show where the ad breaks can be kinda random, like an NFL game when there’s an abrupt injury timeout?

For live programming, the streaming service would need to send its CTV app a heads up just before cutting to the ad break. To facilitate this heads-up alert, Google created a tool called the Early Ad Break Notification API. 

When would the notification need to be sent? I mean, when Will Smith makes it back to the Oscars, YouTube is going to want to be able to cut to an ad break at a moment’s notice.

Good point. Google recommends a streaming service send the Early Ad Break Notification at least a minute before cutting to the ad break. But that’s really just a recommendation to accommodate the round-trip request for the CTV app to then ask for an ad to insert after being notified of the upcoming ad break. 

Plus, live shows on traditional TV usually give themselves some buffer for producers to get ready to cut to commercial anyway. Think of when a player is injured and there are shots of the crowd and other players and a wide shot of the field and the announcer recounting the play that led to the injury and how the injured player has performed so far in the game — that’s all, in part, to buy time in preparation for the ad break.

What we’ve heard

“[One-off, individual activations at the Super Bowl] can run upwards of $200K for a mid-tier macro influencer.”

— Later’s Scott Sutton

Numbers to know

$1.2 billion: Roku’s platform revenue in the fourth quarter of 2025, up 18% year over year.

$2.75 million: How much Disney paid to settle a privacy lawsuit over failing to let people opt out of the company selling/sharing their data.

10.4 million: How many streaming subscribers AMC Networks had at the end of 2025.

30%: Tax incentive that Mexico is offering for films and TV shows produced in the country.

7: Number of days that Netflix has granted Warner Bros. Discovery to reopen deal talks with Paramount.

What we’ve covered

How the creator economy showed up at this year’s Super Bowl:

• The event saw an increase in last-minute brand deals, with creators reporting significant earnings from unique opportunities.
• Brands invited creators to their Super Bowl suites that can cost $1 million.

Read more about creators at the Super Bowl here.

How mega influencer Haley Baylee is diversifying beyond platform algorithms:

• LinkNYC will play the creators’ videos on its kiosks across New York City.
• The brand is not paying Baylee to syndicate her content.

Read more about Haley Baylee here.

Despite flight to fame, celeb talent isn’t as sure a bet as CMOs think:

• 63% of Super Bowl ads featured celebrities this year, up from 25% in 2011.
• Brands’ aversion to being political could conflict with the increasing number of celebrities taking stances on issues like ICE agents killing U.S. citizens.

Read more about celebrity endorsements here.

What we’re reading

WBD reopens Paramount deal talks:

Warner Bros. Discovery is reopening deal talks with Paramount Skydance after Netflix granted a seven-day waiver, as Paramount has reportedly revised its offer to at least $31 per share, according to Axios.

Hollywood’s AI copyright fight with ByteDance:

Disney and Paramount have sent cease-and-desist letters to ByteDance accusing the company of using their IP without permission to train its Seedance 2.0 AI video generation model, with Disney’s attorney citing a “pirated library” of copyrighted characters, according to The New York Times.

Apple Podcasts’ video push:

Apple Podcasts plans to roll out “advanced video capabilities” including the ability to dynamically insert video ads, with plans to charge creators for dynamic video ad delivery starting in late 2026, according to Variety.

SAG-AFTRA’s Netflix podcast deal:

SAG-AFTRA has signed a podcast agreement with Netflix for The Pete Davidson Show, a “video podcast” exclusive to the streaming service rather than typical audio platforms, with less stringent requirements than TV agreements around residual payments and production protocols, according to Variety.

Video podcasts’ threat to daytime TV:

The rise of video podcasts is threatening traditional daytime talk shows, with popular programs like “The Kelly Clarkson Show” and “Sherri” being canceled as cheaper digital alternatives attract high-profile guests, according to The Hollywood Reporter.