Can Connected TV (CTV) Outgrow Its Issues and Reach Its Full Potential? Connected TV (CTV) advertising is like a brilliant but slightly flawed diamond
in the rough. It has immense potential, but it's grappling with challenges that need to be polished away. Issues like measurement standards, fraud, and disjointed integration with other channels hinder its growth. Advertisers are demanding more direct connections, better protection, and seamless integration within the omnichannel landscape. Despite these hurdles, CTV's trajectory is promising. As the industry addresses these challenges and refines its approach, CTV has the potential to shine as
a dominant force in advertising, captivating audiences with targeted, engaging, and measurable campaigns across the connected TV ecosystem. It just needs a little more TLC to reach its dazzling full potential.
The rise of connected TV (CTV) as a popular viewing platform has brought significant attention to its advertising potential. However, despite the hype surrounding CTV, the industry is still grappling with several issues that hinder its growth and maturity. In this in-depth article, we will
examine the key challenges faced by CTV advertising and explore the potential solutions that could reshape the marketing technology landscape over the next few years.
Measurement Challenges and the Need for Direct Connections: One of the primary obstacles that CTV
advertising must overcome is the lack of comprehensive measurement standards. While advertisers recognize the digital power of CTV as a marketing channel, the market has yet to deliver the transparency, precision, and audience data needed for effective optimization at scale. The current landscape is plagued by opaque reselling practices, fraud, and inventory confusion, with CTV ad fraud schemes increasing by 70% between 2020 and 2021, resulting in an estimated $140 million loss. To address these challenges, advertisers are increasingly seeking more direct means of buying CTV inventory, reducing the number of intermediaries and establishing transparent relationships with publishers. This trend is evident in the growth of upfront CTV ad buying, which is expected to exceed $6 billion this year, accounting for a significant portion of total CTV video ad spending. However, it is
crucial to note that this surge in upfront spending is a reaction to the current limitations within the CTV space, and advertisers will likely pivot towards more targeted and nimble buying approaches as CTV data becomes more precise and actionable. CTV's Place in the Omnichannel Equation: Another critical factor shaping the future of CTV advertising is its integration within the larger omnichannel ecosystem. Advertisers expect CTV to seamlessly integrate with their digital and mobile channels, providing a holistic view of their marketing efforts. Currently, CTV operates in silos, disconnected from the broader digital planning, buying, measurement, and attribution cycle. To reach true maturity, CTV must demonstrate its ability to integrate with other
channels effectively. Advertisers are increasingly looking for opportunities to buy CTV inventory in a way that considers their efforts across various digital channels while maintaining a direct connection with publishers. The future of CTV buying will be integrated and direct, enabling advertisers to maximize ROI while ensuring a cohesive advertising strategy across platforms. CTV's Growth and the Need for Enhanced Protection: As CTV advertising continues to grow, it also becomes a prime target for fraud. Advertisers are projected to spend nearly $24 billion on CTV advertising this year, presenting ample opportunities for fraudsters to exploit. CTV ad
fraud involves deceptive tactics that inflate video ad impressions, costing advertisers significant amounts of money. In 2022, bot fraud on CTV surged by 69%, and the number of CTV fraud schemes detected has tripled since 2020. To combat fraud and ensure campaign efficacy, constant protection and verification are crucial. DoubleVerify'srecent Global Insights Report highlights the need for
continuous protection to tackle quality issues and emphasizes the importance of attention-based metrics. The report found that unprotected advertisers experienced a fraud rate of 11.2%, compared to just 0.6% for protected campaigns, demonstrating the significant risk for advertisers operating without proper verification measures. Attention-based metrics are also gaining traction as
advertisers seek to optimize campaign performance and enhance ROI. DV's Authentic Attention® measurement provides impression-level insights that go beyond mere viewability, allowing advertisers to understand the impact and resonance of their ads while benchmarking against industry standards. Attention metrics provide valuable data for evaluating performance and informing future advertising strategies. Why CTV Will Never Go Open Exchange: While programmatic buying has become the norm in digital advertising, the transition to a fully open and automated buying landscape for CTV is not inevitable. Unlike digital advertising, CTV inventory is limited and concentrated within a few major publishers, making direct sales channels more favorable for both
publishers and advertisers. Streaming networks are increasingly moving away from programmatic platforms to maintain control over their premium content and ensure a positive viewer experience. The scarcity of premium CTV inventory means that advertisers often prefer direct relationships to secure inventory at scale, rather than relying on exchanges that limit the available inventory.
Additionally, direct relationships allow for more integrated ad experiences, particularly with larger CTV players. The shift towards direct buying channels aligns with the preferences of publishers and advertisers, ensuring transparency, control, and the preservation of the audience viewing experience. Connected TV (CTV) advertising holds immense potential, but it still faces significant
challenges that must be addressed for the channel to reach its full maturity and value. Measurement transparency, direct connections, and protection against fraud are crucial areas that require improvement to instill confidence in advertisers and maximize the effectiveness of CTV campaigns. Furthermore, integrating CTV within the larger omnichannel ecosystem will be essential to provide
advertisers with a comprehensive view of their marketing efforts. As CTV continues to grow, the marketing technology landscape will evolve to prioritize solutions that offer better measurement, seamless integration, and minimizing steps between CTV publishers and advertisers. While there are hurdles to overcome, the trajectory of CTV advertising is promising. As the industry addresses the
current challenges and implements solutions, CTV has the potential to become a dominant force in the advertising landscape, offering targeted, engaging, and measurable campaigns that captivate audiences across the connected TV ecosystem. |
All the news you need today, in a format that isn't TL:DR, summarized for the busy executive.
Microsoft just announced an exciting new dashboard for their Universal Event Tracking Tag (UET), providing analytics nerds with real-time data on campaign performance metrics such as session count, popular pages, device breakdown, country breakdown, average active time, and quick backs. Additionally, the
dashboard introduces new data signals like cart-abandonment details and page speed, promising to be a useful tool for tracking user behavior and optimizing ad performance. The UET feature will be automatically rolled out on June 29, becoming the default for newly created tags, but users have until June 26 to opt out if they prefer not to be upgraded automatically. Time to explore this analytics gem and unleash its potential!
After an impressive
33-year journey in the business, Conny Braams, Unilever's chief marketing and digital officer, is bidding farewell, leaving a notable mark on the company's digital transformation. Since taking over from Keith Weed in 2019, Braams has been recognized for her keen insights and focus on evolving digital operations. Her departure aligns with chief executive Alan Jope's plans to step aside, marking a significant transition period for Unilever. As Braams embarks on her next adventure, her
legacy and contributions to Unilever's digital evolution will undoubtedly continue to resonate.
In a surprising twist, despite receiving low grades for media opportunities, Amazon has achieved the remarkable feat of being ranked as the "best-in-class" retail media network by The Mars Agency's "Retail Media Report Card." The May 2023 edition of the report, which now evaluates 15 retail media networks, highlights Amazon's exceptional
performance in four other crucial areas, propelling it to the top spot. The agency acknowledges Amazon's shortcomings in media opportunities but emphasizes its strengths in targeting, measurement/reporting, innovation, and partnership. Only Walgreens and Best Buy managed to exceed expectations in terms of media opportunities among the 15 networks assessed.
Representative Scott
Fitzgerald of Wisconsin has introduced the Fair and Balanced FTC Act, a bill aimed at reforming the Federal Trade Commission (FTC). The proposed reform seeks to ensure a more politically balanced composition of the FTC's commissioners. Under the bill, no more than three commissioners could be affiliated with the same political party, addressing the current situation where all three serving commissioners belong to the same party. The legislation would also require the presence of at
least one commissioner from a party different from that of the chair in order for the FTC to take action. Representative Fitzgerald criticized the current state of the FTC, describing it as a partisan agency that stifles dissenting views and stretches its jurisdictional limits to advance its own agenda. The bill aims to enhance the effectiveness and impartiality of the FTC in serving the American people.
Smosh, the comedy group that gained fame on YouTube, is capitalizing on the growing trend of livestreaming in the creator marketplace. With the help of video tech company Kiswe, Smosh is breaking into the livestreaming space, offering new revenue opportunities like online ticket sales and brand sponsorships. Livestreaming not only allows Smosh to engage with its dedicated fanbase in real
time but also attracts advertisers who value the captive audience. By embracing livestreaming, Smosh gains more control over the viewing experience and audience data, while still maintaining its presence on YouTube, where it has a large following. Livestreaming is proving to be a profitable and engaging avenue for creators to connect with their fans and generate revenue.
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ADVERTISING ON AISLE 5: WALMART’S SECRET WEAPON In the fiercely competitive retail landscape, the emergence of media network platforms has become a prominent trend, with giants like Walmart and Target expanding their reach through innovative advertising strategies. These platforms, known as Retail Media Networks (RMNs), are revolutionizing the way retailers and suppliers connect with consumers, leveraging data-driven insights to deliver personalized marketing solutions. Walmart’s advertising division, Walmart Connect,
is at the forefront of this transformative shift, experiencing substantial growth and positioning itself as a major player in the advertising industry. This article delves into the rise of Walmart’s extensive ad business and the significance of RMNs in the evolving retail landscape. READ MORE
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HYPHAMETRICS REVOLUTIONIZES MEDIA MEASUREMENT WITH UNIE: A COMPLETE UNDERSTANDING OF
CROSS-PLATFORM CONSUMPTION In an era of fragmented media landscapes and siloed data, HyphaMetrics, an independent media measurement company, is making waves with its groundbreaking UNIe (Unified Neuromedia Identification Engine) system. UNIe utilizes artificial intelligence and machine learning to capture the complete TV omnichannel experience in real-time, providing a holistic
understanding of media consumption. Recently issued a U.S. patent for its innovative cross-platform measurement system, HyphaMetrics is transforming the way advertisers, content creators, and marketers measure and analyze media performance. READ MORE
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CTV’S CAPTAIN FANTASTIC: MIKE SEIMAN AND THE RISE OF PERFORMANCE-DRIVEN TV As the CEO and Chairman of Digital Remedy,
he's been juggling eyeballs, clicks, and ROI like a seasoned pro. From direct response ad networks to media buying nirvana, Seiman's journey has been a wild ride filled with lessons, laughter, and a healthy dose of innovation. With his sights set on conquering CTV and OTT, he's rewriting the rules and turning campaigns into dazzling performances. So, grab your popcorn and get ready for a show like no other, because with Seiman at the helm, digital advertising just got a whole lot wittier and a
whole lot more profitable. READ ENTIRE STORY
WTF IS MARYLAND's DIGITAL AD TAX ALL ABOUT??? Maryland's pioneering digital ad tax has left the digital ad industry
scratching its head and pondering its impact. With big tech companies facing varying tax rates based on their global revenue, the industry wonders if this move will level the playing field or simply give Maryland advertisers a case of FOMO (Fear of Missing Out). Will this tax disrupt the online advertising landscape, or will advertisers find clever ways to navigate this new terrain? Only time will tell if Maryland's digital ad tax is a stroke of genius or a costly clickbait
adventure. READ ENTIRE STORY
FTC’S BCP ISSUES CRIMINAL LIAISON UNIT REPORT OUTLINING WRONGDOER ACCOUNTABILITY EFFORTS On January 30, 2023, the Criminal Liaison Unit of the Federal Trade Commission’s Bureau of Consumer Protection (BCP CLU) issued its 2022 Criminal Liaison Unit Report, describing the history of the BCP CLU, its program operations, and major accomplishments over the past five years. In an effort to ensure criminal prosecution of appropriate consumer fraud cases, the BCP CLU refers cases to partner agencies with criminal jurisdiction, including U.S. Attorney’s Offices
across the county, Divisions of the Department of Justice (DOJ) and others. . READ ENTIRE STORY
THE CZAR OF TCPA DEFENSE: ERIC TROUTMAN’S REIGN OF LITIGATION STRATEGY Eric Troutman,
commonly known as “the Czar” in certain legal circles, is one of the country’s top class action defense lawyers and a nationally recognized expert in Telephone Consumer Protection Act (TCPA) litigation and compliance. His deep experience and encyclopedic knowledge of the TCPA landscape make him an invaluable resource to institutional compliance teams struggling to comply with the shifting regulatory landscape. Eric Troutman is well known for finding creative solutions to complex legal problems
and has earned numerous first-in-the-nation results and precedent-setting cases for his clients. READ ENTIRE STORY |
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