Which statement about local ad insertion is correct?

Local ad insertion refers to the process of substituting national or regional advertisements with local ones, allowing service providers to tailor their ad content to specific audiences. The correct statement emphasizes that this function is most commonly executed by a video server.

Video servers are specialized devices or software used to store, manage, and distribute video content, including ads. They are capable of dynamically inserting local advertisements into a video stream, which allows for real-time decision-making based on various factors, such as audience demographics or other contextual data. This capability is essential for targeted marketing and helps advertisers reach local audiences more effectively.

The other statements do not accurately reflect the functionality and technological capabilities associated with local ad insertion. For instance, while local ad insertion can sometimes be a manual process, advancements in technology have streamlined it, particularly when handled by video servers, making it less time-consuming than it once was. Additionally, local ad insertion can indeed occur during live broadcasts, which allows for enhanced relevance during events such as sports or local news. Moreover, while there may be instances where third-party vendors are involved, local ad insertion is not exclusively managed by them; it can be effectively managed in-house by service providers.