What's Happening?
New research from Adstra and InterMedia Advertising highlights significant inaccuracies in IP-based connected television (CTV) targeting. The study found that only 23% of residential IP addresses accurately reached their intended geographic targets. This
has raised concerns about the effectiveness of IP-based mapping methodologies used by leading CTV providers. The research suggests that CTV identifiers, which are device-level, are more consistent over time compared to IP addresses. The findings have prompted calls for improved transparency and accuracy in identity resolution to prevent wasted media spend and enhance targeting precision.
Why It's Important?
The inaccuracies in IP-based CTV targeting have significant implications for advertisers and the broader ad industry. Ineffective targeting can lead to wasted advertising budgets and reduced campaign effectiveness. As advertisers increasingly rely on digital platforms for audience engagement, the need for accurate identity resolution becomes critical. The study's findings could drive industry-wide changes in how identity data is managed and utilized, potentially leading to more efficient and effective advertising strategies.
What's Next?
Adstra has proposed a new framework called ID Connection Strength (ICS) to improve identity resolution accuracy. This framework aims to provide a measurable standard for digital identifiers, enhancing confidence in targeting and measurement. As the industry seeks to address these challenges, advertisers may demand greater transparency in identity matching processes. The adoption of improved identity resolution tools could lead to more precise targeting and better allocation of advertising resources.
