What's Happening?
Connected TV (CTV) advertising is becoming increasingly important as streaming video viewing on TV disrupts traditional linear TV models. CTV promises to combine the impact and reach of TV advertising with
the targeting, measurement, and interactivity of digital advertising. However, the CTV ad ecosystem currently lacks many of the safeguards that advertisers and agencies are accustomed to in other media channels. Issues such as verification of ad delivery, fraud, and mislabeling are prevalent, with ad-verification companies admitting they cannot confirm whether CTV ads are delivered or watched by real people. The market is beginning to respond, with platforms like Comcast's FreeWheel taking steps to streamline the CTV ad buying process, reducing intermediary hops and fees between buyers and sellers.
Why It's Important?
The lack of guard rails in CTV ad buying poses significant risks for advertisers, including increased costs and exposure to fraudulent activities. As CTV becomes a critical component of premium video media plans, ensuring the integrity and effectiveness of ad delivery is crucial for advertisers seeking to maximize their investment. The steps taken by platforms like FreeWheel to simplify the supply chain and provide direct access to premium publisher supply are vital in addressing these challenges. By reducing intermediary involvement, advertisers can achieve better cost efficiency and higher yield, while minimizing the risk of fake or misrepresented inventory.
What's Next?
As the market continues to evolve, further efforts to establish robust verification and compliance standards in CTV ad buying are expected. Advertisers and agencies may push for more transparency and accountability from ad platforms to ensure the reliability of ad delivery and reporting. The industry may also see increased collaboration among stakeholders to develop and implement best practices that protect against fraud and enhance the overall effectiveness of CTV advertising.
Beyond the Headlines
The challenges faced in CTV ad buying highlight broader issues within digital advertising, such as the need for improved transparency and accountability. As advertisers increasingly rely on digital platforms, the importance of establishing trust and credibility in ad delivery becomes paramount. The ongoing efforts to address these issues in CTV could serve as a model for other areas of digital advertising, promoting a more secure and efficient ecosystem.
