What's Happening?
Todd Cohen, Vice President of CTV & Video Strategy & Sales at Perion, argues that the video completion rate (VCR) is an inadequate metric for measuring the success of Connected TV (CTV) advertising campaigns. Traditionally, VCR has been used to indicate
whether an ad was fully viewed, often boasting completion rates above 90%. However, Cohen points out that in a non-skippable CTV environment, a high VCR does not necessarily reflect the ad's effectiveness. Instead, it merely confirms that the ad was played. The industry has historically treated CTV like other video formats, but the non-skippable nature of CTV ads means that VCR is not a reliable performance indicator. Cohen suggests that advertisers should focus on outcome-driven metrics that connect ad exposure to tangible business results, such as website visits, leads, and sales.
Why It's Important?
The reliance on VCR as a primary metric can lead to misallocated advertising budgets and missed opportunities for optimization. By focusing on VCR, advertisers may overlook more meaningful data that could inform better strategic decisions. The shift towards outcome-driven metrics is crucial as it aligns CTV advertising with the accountability standards of other digital media. This change can help advertisers understand the true impact of their campaigns, leading to more effective budget allocation and improved return on investment. As advertisers demand more detailed insights, platforms that offer deterministic attribution and real-time optimization will likely become more attractive, potentially reshaping the CTV advertising landscape.
What's Next?
Advertisers are expected to increasingly demand more comprehensive data from their CTV partners, focusing on metrics that measure post-ad actions such as website engagement and conversions. This shift will likely drive platforms to enhance their reporting capabilities, offering more transparency and granularity in campaign performance data. As the industry moves away from VCR, advertisers and platforms will need to collaborate closely to develop and implement new measurement standards that accurately reflect campaign effectiveness. This evolution could lead to more sophisticated CTV advertising strategies and potentially influence broader changes in digital advertising metrics.
