What is the story about?
What's Happening?
The connected TV (CTV) industry is experiencing significant growth, with U.S. CTV ad spending projected to increase by 13% to $26.6 billion, according to the IAB's 2025 Digital Video Ad Spend Report. This growth has led various platforms, including gaming and social media, to position themselves as part of the CTV landscape to capture higher value. The industry is witnessing a trend where platforms traditionally not considered CTV are attempting to redefine themselves to fit into this category. This includes gaming platforms arguing their ads served on large screens qualify as CTV and social platforms deploying apps on connected devices. The rush to label everything as CTV risks diluting the value of true connected TV experiences, as highlighted by the IAB's State of Data 2025 Report.
Why It's Important?
The rapid expansion of the CTV industry has significant implications for advertisers and media platforms. As CTV commands higher ad prices, platforms are eager to redefine themselves to capture these budgets. However, this trend could lead to a fragmentation of CTV formats and definitions, complicating measurement consistency and potentially eroding trust among advertisers. Advertisers seek transparency and results, and stretching definitions to fit into the CTV category may lead to superficial media plans. The industry must focus on authenticity and leverage core strengths to build sustainable value, rather than chasing the CTV label. This approach can help platforms offer unique ad experiences and maintain trust with advertisers.
What's Next?
The industry faces the challenge of aligning on a clear definition of CTV to prevent mislabeling and inflated costs. The IAB plans to work on navigating these varying definitions to help buyers and sellers understand the true value of CTV. Platforms are encouraged to embrace their authentic formats, such as gaming environments offering immersive ad experiences and retail media providing precise data-driven commerce solutions. Success in the evolving TV landscape will come from innovating within one's format and delivering real results, rather than competing directly with streaming platforms.
Beyond the Headlines
The push to redefine platforms as CTV highlights broader ethical and strategic considerations. Platforms must balance the desire for higher ad revenues with the need for transparency and trust. Mislabeling can lead to inflated costs and erode advertiser confidence, emphasizing the importance of authenticity in media offerings. The industry's ability to innovate and deliver unique ad experiences will be crucial in maintaining credibility and achieving long-term growth.
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