When it comes to streaming, live sports are the ultimate prize

Live sports have long been hailed as the crown jewel of television. Now, they represent the ultimate prize for digital streaming platforms as well.

The fusion of live sports with advanced streaming technology has the potential to generate significant revenue streams through advertising, but it also comes with unique challenges that the industry must overcome to unlock its full potential.

For decades, live sports have delivered the kind of engaged, real-time audiences that advertisers dream of. Unlike on-demand content, sports fans tune in collectively, often staying glued to the screen for the duration of the event. This makes sports one of the last bastions of appointment viewing, a format where ads are not just seen but actively absorbed. For streaming services, capturing and optimizing this ad inventory drives both subscriber growth and revenue. However, the task is far from straightforward.

One of the biggest challenges for streaming platforms is creating a seamless ad experience. Unlike traditional TV, where viewers have long accepted commercial breaks as part of the package, streaming audiences demand more control and fewer interruptions. This expectation creates a dilemma: How can platforms maximize ad revenue without alienating viewers?

The key lies in personalization and technology. Advanced ad-serving capabilities now allow platforms to target ads to individual viewers, tailoring messages based on their preferences, location and behaviors. For example, a fan in Miami watching a basketball game might see an ad for a local car dealership, while a viewer in Los Angeles is served a promo for a new streaming series.

This level of granularity ensures that ads feel relevant, reducing the likelihood of viewer frustration. Yet, achieving this requires lightning-fast ad pods that load seamlessly, maintaining the flow of the broadcast.

Even with these innovations increasingly available, live sports bring unique complications that demand creative solutions. Take overtime as an example. When a game goes into extra innings, overtime or penalty shoot-outs, the programming timeline becomes unpredictable. Traditional broadcasters often struggle to insert additional ad pods without disrupting the flow of the game.

For streaming platforms, this unpredictability creates an even greater challenge: How to serve ads dynamically in these moments while ensuring that viewers stay engaged. It’s a daunting technical challenge.

One potential solution is to introduce an ad pod immediately following the conclusion of an overtime period but before postgame commentary. This brief interlude not only provides a natural break for advertisers but also gives viewers a moment to absorb the excitement of the game’s climax.

Streaming platforms could even personalize these post-overtime ads to reflect the emotional state of the audience. For example, fans of the winning team might see celebratory ads, while those rooting for the losing side are shown lighter, more comforting messages.

Another area ripe for innovation is ad distribution. For live sports, the cadence of ads needs to feel organic and integrated into the broadcast. This means developing technology that can insert ads without causing buffering or lag, a common pain point for viewers.

Many platforms are experimenting with fast-loading ad pods designed specifically for live content, ensuring that the transition between gameplay and commercials feels seamless. The goal is to make the ad experience indistinguishable from the live action, preserving the immersive nature of the event.

Despite these challenges, the rewards for getting live sports advertising right are immense.

Not only do sports offer unparalleled reach and engagement, but they also attract a demographic that is increasingly elusive in the digital age: younger viewers. By investing in advanced ad tech and reimagining the viewing experience, streaming platforms can position themselves as the go-to destination for sports fans, capturing a lucrative slice of the advertising pie.

Ultimately, success will depend on balancing innovation with respect for the traditions that make live sports so beloved. Advertisers and platforms must work together to create an ecosystem where ads enhance rather than detract from the viewing experience.

Done right, they can ensure that live sports remain the crown jewel of entertainment in the digital era.

This op-ed represents the views and opinions of the author and not of The Current, a division of The Trade Desk, or The Trade Desk. The appearance of the op-ed on The Current does not constitute an endorsement by The Current or The Trade Desk.