Rebecca Ohana
Rebecca Ohana

Marketing Manager

Programmatic CTV Opportunities & Overcoming Barriers

As foreseen by many, innovation and advancement in Connected TV (CTV) is one of the significant emergent trends in 2022. Advertisers reallocated considerable parts of their budgets in the past year from linear TV to CTV. According to Extreme Research, in Q2 2022, CTV accounted for 38% of all impressions served, the same share it had in Q1.

Market Potential – Programmatic Advertising

eMarketer has estimated CTV ad spend to grow by 32.3% from 2021 to 2022 to $24.2 billion in 2023, up from $14.4 billion in 2021. The forecast also sees US CTV ad spending more than doubling by 2025, surpassing $30 billion.

When it comes to CTV, tech companies have an unprecedented opportunity to accommodate the needs of content owners and advertisers in the programmatic marketplace. The companies can achieve this by offering tools, such as Supply Path Optimization (SPO), to protect media budgets and achieve efficiency through more direct buying paths.

There is also a need to facilitate the measurement process with CTV. Compared to direct buys in linear TV advertising, if done right, programmatic marketplaces allow for a more effective method of targeting and an improved understanding of campaign results.

Industry Standards – CTV Advertising Market

As the TV and digital worlds converge, some issues remain with CTV. For CTV to truly deliver on its promise and scale, the industry needs technical standards that enable interoperability and efficiency. Since CTV is a novelty at least compared to other ad formats, there are currently no widely adopted industry standards concerning it. As such, certain industry players, like non-profit consortium IAB, are hard at work to catch up and introduce standards, hopefully for near-term adoption.

On March 31, 2022, IAB released its “Ad Format Guidelines for Digital Video and CTV.” IAB works with the industry developing guidelines and technology, writing specs, and providing services to align and standardize the industry to enable growth. The main themes cover brand safety and ad fraud; identity, data, and consumer privacy; ad experiences and measurement; and programmatic efficiency. The in-depth 2022 guidelines accommodate high-quality video requirements for cross-screen video advertising on desktop, mobile, and CTV.

This guideline aims to reduce the fragmentation of ad formats used by various CTV publishers. It also creates standardization to enable advertisers to use their digital assets across screens more easily, while still protecting publishers’ interests. This standardization will help cost saving by reducing the need for video assets in multiple formats. Overall, the uptake in standardization will enable a more seamless transition of ad dollar spend from linear TV to CTV.

Anthony Katsur, CEO of IAB, explains that standardizing ad formats will allow publishers to “scale their inventory more easily across different distribution channels, such as programmatic marketplaces or ad networks, which will deliver better fill rates.” In addition, he says that for advertisers, standardization makes cross-screen programmatic activation of CTV and Digital Video simpler.

According to IAB, promoting and adhering to CTV ad file submission guidelines will help streamline ad placement and development operations while delivering the best possible experience in the user’s device for the available bandwidth. So, who should use the guidelines and how?

IAB recommends that: 

  • Publishers use it as a resource to provide creative submission requirements for video ads.
  • Video ad developers use it as a reference for baseline ad development specifications.
  • Studios, video ad technologists, creative agencies, and video ad-serving partners use it as a reference for digital video ad specifications. 

Key Takeaway – Programmatic CTV Advertising 

In conclusion, despite the common challenges when introducing any new advertising method, the CTV market is expected to be lucrative for years. It has presented the industry with incredible programmatic opportunities, and the introduction of industry standards will likely set the landscape for the future of CTV practices.

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Rebecca Ohana
Rebecca Ohana

Marketing Manager

Programmatic CTV Opportunities & Overcoming Barriers

As foreseen by many, innovation and advancement in Connected TV (CTV) is one of the significant emergent trends in 2022. Advertisers reallocated considerable parts of their budgets in the past year from linear TV to CTV. According to Extreme Research, in Q2 2022, CTV accounted for 38% of all impressions served, the same share it had in Q1.

Market Potential – Programmatic Advertising

eMarketer has estimated CTV ad spend to grow by 32.3% from 2021 to 2022 to $24.2 billion in 2023, up from $14.4 billion in 2021. The forecast also sees US CTV ad spending more than doubling by 2025, surpassing $30 billion.

When it comes to CTV, tech companies have an unprecedented opportunity to accommodate the needs of content owners and advertisers in the programmatic marketplace. The companies can achieve this by offering tools, such as Supply Path Optimization (SPO), to protect media budgets and achieve efficiency through more direct buying paths.

There is also a need to facilitate the measurement process with CTV. Compared to direct buys in linear TV advertising, if done right, programmatic marketplaces allow for a more effective method of targeting and an improved understanding of campaign results.

Industry Standards – CTV Advertising Market

As the TV and digital worlds converge, some issues remain with CTV. For CTV to truly deliver on its promise and scale, the industry needs technical standards that enable interoperability and efficiency. Since CTV is a novelty at least compared to other ad formats, there are currently no widely adopted industry standards concerning it. As such, certain industry players, like non-profit consortium IAB, are hard at work to catch up and introduce standards, hopefully for near-term adoption.

On March 31, 2022, IAB released its “Ad Format Guidelines for Digital Video and CTV.” IAB works with the industry developing guidelines and technology, writing specs, and providing services to align and standardize the industry to enable growth. The main themes cover brand safety and ad fraud; identity, data, and consumer privacy; ad experiences and measurement; and programmatic efficiency. The in-depth 2022 guidelines accommodate high-quality video requirements for cross-screen video advertising on desktop, mobile, and CTV.

This guideline aims to reduce the fragmentation of ad formats used by various CTV publishers. It also creates standardization to enable advertisers to use their digital assets across screens more easily, while still protecting publishers’ interests. This standardization will help cost saving by reducing the need for video assets in multiple formats. Overall, the uptake in standardization will enable a more seamless transition of ad dollar spend from linear TV to CTV.

Anthony Katsur, CEO of IAB, explains that standardizing ad formats will allow publishers to “scale their inventory more easily across different distribution channels, such as programmatic marketplaces or ad networks, which will deliver better fill rates.” In addition, he says that for advertisers, standardization makes cross-screen programmatic activation of CTV and Digital Video simpler.

According to IAB, promoting and adhering to CTV ad file submission guidelines will help streamline ad placement and development operations while delivering the best possible experience in the user’s device for the available bandwidth. So, who should use the guidelines and how?

IAB recommends that: 

  • Publishers use it as a resource to provide creative submission requirements for video ads.
  • Video ad developers use it as a reference for baseline ad development specifications.
  • Studios, video ad technologists, creative agencies, and video ad-serving partners use it as a reference for digital video ad specifications. 

The CTV market is expected to be a fruitful one for years to come, and it has presented the industry with great opportunities and challenges. As industry standards will be introduced, it will likely set the landscape for the future of CTV practices. Moreover, it will be critical for tech players to have an accurate fraud prevention system in place, to ensure safe and accurate CTV practices. 

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