What's Happening?
A recent study by identity resolution vendor Adstra and media agency InterMedia Advertising has revealed that IP-based connected television (CTV) targeting is significantly less accurate than previously believed. The research found that only 23% of residential
IP addresses reached their intended geographic target. This inaccuracy is attributed to the opaque methodologies used by identity vendors, which often prioritize match rate or scale over accuracy. The study highlights the need for more transparent and reliable identity resolution methods, as current practices lead to wasted media spend and ineffective advertising strategies.
Why It's Important?
The findings have significant implications for the advertising industry, which relies heavily on accurate targeting to optimize media spend and reach the right audiences. The inefficiency of IP-based targeting could lead to substantial financial losses for advertisers and undermine the effectiveness of marketing campaigns. As advertisers seek more reliable solutions, there is a growing demand for improved identity resolution frameworks that offer greater transparency and accuracy. This shift could drive innovation in the industry and lead to the development of new standards for identity verification.
What's Next?
Adstra has proposed a new framework called ID Connection Strength (ICS) to address the shortcomings of current targeting methods. ICS aims to provide a more reliable measure of how accurately digital identifiers are linked to real individuals or households. The framework is currently being tested with various brands and agencies, and its wider adoption could lead to significant improvements in targeting accuracy. As the industry moves towards more transparent practices, advertisers are encouraged to demand greater visibility into how identity matching is conducted.
