Ad insertion remains top challenge for streaming, Bitmovin report notes

Bitmovin’s 2025 “Video Developer Report” highlights ongoing challenges in the streaming industry, with ad insertion remaining a primary concern despite the increased adoption of advertising-based models.

The report, based on responses from industry professionals across 34 countries, also shows the growing role of artificial intelligence and the slow adoption of next-generation video codecs.

Advertising continues to be the top area for stream innovation, cited by 15% of respondents. However, 38% identified ad insertion as their biggest challenge. The industry’s reliance on advertising-supported models has grown, with 69% of respondents using an AVOD model, up from 56% last year, and 46% adopting FAST models, up from 39%.

The report found client-side ad insertion to be the most widely used method (64%), followed closely by server-side ad insertion (63%). Dynamic ad insertion and server-guided ad insertion trailed at 25% and 21%, respectively. Bitmovin CEO and co-founder Stefan Lederer said the persistence of ad insertion challenges reflects the need for continued technical improvements to support the industry’s revenue models.

Beyond advertising, controlling costs was the second most pressing concern for respondents (31%), reflecting broader economic conditions. Playback across multiple devices ranked third (29%).

The report also examined the role of artificial intelligence in streaming workflows.

While AI is being integrated into various aspects of the industry, its adoption remains uneven. Twenty-eight percent of respondents reported using AI for audio transcription and speech-to-text applications, while 13% leverage it for video tagging and categorization.

Personalization ranked third at 8%. However, 9% of respondents said they have no plans to use AI or machine learning, up from 6% last year.

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Cost concerns also appear to be impacting sustainability efforts. While 70% of respondents acknowledged sustainability as an important factor, they did not prioritize it due to cost constraints—up from 40% last year. Only 2% said green streaming is a top priority, a decline from 6% in the previous report.

Codec adoption continues to be an area of slow progress. H.264/AVC remains the dominant format, used by 80% of respondents. H.265/HEVC follows at 49%, while VP9 and AV1 are each used by 13%. AV1 is the leading codec for planned adoption over the next year, with 32% indicating they intend to implement it.

The findings suggest that while AI adoption is growing and advertising-based streaming models continue to expand, technical challenges and cost concerns are shaping the industry’s priorities.