What's Happening?
Connected TV (CTV) advertising is becoming increasingly important as streaming video viewing on TV disrupts traditional linear TV. CTV promises to combine the impact and reach of TV advertising with the targeting
and interactivity of digital advertising. However, the CTV ad ecosystem lacks many of the safeguards present in other media channels, leading to issues such as ad delivery verification challenges, prevalent fraud, and mislabeling of ads. Companies claiming to verify ad deliveries admit they cannot confirm if ads were watched by real people. Additionally, many CTV ad transactions do not comply with labeling standards, resulting in ads being misrepresented. Despite these challenges, efforts are underway to improve the situation, with platforms like Comcast's FreeWheel taking steps to streamline the CTV ad buying process.
Why It's Important?
The lack of guard rails in CTV ad buying poses significant risks for advertisers and media owners. Without proper verification and compliance, advertisers may face increased costs and reduced effectiveness of their campaigns. The prevalence of fraud and misrepresentation can lead to wasted ad spend and damage to brand reputation. As CTV advertising becomes a critical component of media plans, addressing these issues is essential to ensure the integrity and effectiveness of advertising efforts. The steps taken by platforms like FreeWheel to reduce intermediary hops and fees could lead to more direct and efficient transactions, benefiting both buyers and sellers.
What's Next?
The industry is beginning to respond to the challenges in CTV ad buying, with major platforms taking steps to improve transparency and efficiency. As these efforts continue, advertisers and agencies may see improved access to premium inventory and more reliable ad delivery. The focus on reducing fraud and misrepresentation could lead to increased trust in CTV advertising, encouraging more brands to invest in this medium. Continued attention to compliance and verification standards will be crucial in shaping the future of CTV advertising.
