CTV advertising’s challenges go back to identityĪs with so many other issues in ad tech, then, CTV advertising’s core issues boil down to problems of audience identity. Ad tech will also have a role to play in helping publishers access viewer data across publishers to avoid redundancy. But to provide better frequency capping on CTV, SSPs will need to offer publishers audience targeting solutions that allow them to adjust individual targeting based on shared household data. SSPs and third-party providers are working on frequency capping tools that allow the publisher to regulate the number of times viewers see the same brand or creative. Second, data is siloed across publishers, so a viewer watching the 1pm Jets game on CBS sees an ad three times that they then see three more times when they watch the 4pm Giants game on Fox’s streaming platform. First, ad tech platforms often identify multiple targets for an ad in the same household but do not limit exposure based on that shared viewing experience, leading one household of people to see an ad many times. Historically, publishers have struggled to deliver effective frequency capping on CTV for two reasons. Who else saw that Rob Gronkowski USAA insurance commercial ten times each Sunday during the NFL season? Unregulated ad frequency risks alienating consumers, who may come to remember the advertiser for the wrong reasons and resent the publisher for overexposure. You don’t need to be an ad tech expert to know that another of CTV advertising’s problems is frequency capping. Some of the hurdles that the industry must overcome in order to see widespread adoption of programmatic: CTV has an ad-frequency capping problem SSPs will need to educate clients on these possibilities and provide the technology to help them increase demand and maximize the value of their inventory. Savvy CTV publishers are adopting emerging solutions that allow them to manage direct deals and programmatic auctions at once, retaining the premium prices deals deliver while opening up the flood of demand provided by programmatic. On the supply side, video ad serving is still complex, requires substantial troubleshooting and expert ongoing optimizations to make the most of CPMs and fill.īut expect CTV publishers to demand better monetization methods and technologies this year. The technology and cultural affinity for advanced programmatic solutions such as header bidding have yet to become commonplace in the CTV ecosystem.
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On the demand side, this is in great part because the TV ad industry is used to direct deals. Header bidding is commonplace on the open web, but it has been slower to gain widespread adoption on other channels such as inapp and CTV. Unified auctions allow publishers to offer inventory to a wide range of buyers at once, increasing competition and CPMs. As those in ad tech know well, header bidding has largely replaced the waterfall method that forced publishers to go from ad network to ad network seeking demand.
Header bidding greatly improved publishers’ ability to monetize their inventory on the open web. CTV publishers need better monetization technology Fortunately, the CTV ad tech industry can tackle them, improving CTV advertising for both publishers and the end users they serve. These problems are urgent for publishers and advertisers, alike. Chief among them are insufficient access to the header bidding technologies that have boosted monetization potential in display advertising, problems with frequency capping that undermine the user experience, and fragmentation across screens that undercuts targeting and measurement.
The sector is not only growing in absolute terms but is also one of the fastest-growing digital sectors, propelled by broader growth in programmatic video.īut the channel’s growth spurt has not come without growing pains. Spend on the channel more than doubled from $6.4 billion in 2019 to $14.4 billion in 2021 and is projected to hit nearly $30 billion by 2024.
Referring to internet-connected devices allowing viewers to stream content, CTV advertising is booming. Marketers are increasingly paying attention to CTV (Connected TV) advertising, for good reason.
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