CTV media consumption is skyrocketing, particularly during COVID.
Ad spend is not increasing at a comparable rate.
The article below details the specific things that the industry needs to do to grow the CTV ad market.
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If one believes the adage that it takes just 21 days to make a habit and 90 days to form a lifestyle, then there will be no going back to the old days and ways of linear TV viewing. Recent data—from ad server impressions to syndicated audience analysis—shows that audiences have adopted CTV viewing in droves, especially as shelter-at-home orders began to take hold in March.
Indeed, according to Nielsen during the week of March 16, consumers watched over 156 billion minutes of streaming content — up from 115 billion the prior week and more than double the same week in 2019).
In parallel, the largest pay TV providers lost over 2 million subscribers in Q1 (more than double the approximately 1 million subscribers lost over the same time period in 2019) as the number of cord-cutter and cord-never households continues to grow.
These changes bring into focus challenges that traditional TV has faced for years: high cost of bundles relative to SVOD services, competition from a seemingly endless banquet of high-quality, ad-supported OTT services, as well as (another blow from COVID) the loss of live sports that has long served as pay TV’s defense against streaming competition.
The overall shift to CTV has major implications for brands in terms of how they’ll connect with a growing universe of cord-cutters and cord-nevers.
Some of this migration will happen organically as media buys on publishers’ apps appear naturally on the various connected devices in the household. Some will have to be more purposefully planned. But the core question for the industry now is whether we’ll see a rightsizing of spend in the market, with advertisers allocating spend in a way that matches viewing behavior. If not, why not?
In order to understand where we are in this moment, we invited a core group of brands, publishers, and buyers to weigh in about the case for CTV. What are the gaps and what’s needed to move the OTT streaming video space forward?
Our industry respondents agreed that the industry should lean into four areas to shift more spend to CTV:
Key CTV Areas of Friction for Brands and Agencies
Cross-Platform Video Measurement
How to accurately determine incremental reach and frequency for CTV buys?
How can buyers understand at a program title level where their CTV ads are running and ensure they are placed in brand safe, verifiable inventory?
Mechanisms to manage frequency, audience overlap, and redundant targeting in a fragmented ecosystem
How can advertisers make sure that—when they purchase inventory through programmatic or direct means—they aren’t paying twice for the same impression coming from multiple sources?
ROI Justified Pricing
How can buyers feel confident that highly targeted CTV impressions are worth the extra expense of higher CPMs when compared to untargeted linear TV impressions? Or, “is the juice worth the squeeze?”
Here are some verbatim quotes from our industry respondents.
Are advertisers spending the right amount on CTV versus traditional linear TV?
What’s the most important thing buyers are asking for and looking to achieve with CTV advertising?
What’s the biggest gap in CTV advertising?
What are some of the solutions that exist right now (or coming soon) that make it easier for buyers on CTV?
Optimizing to save clients’ money:
Don’t pay twice for the same impression:
Reaching the “unreachables” (cord-cutters and cord-shavers):
Before the townhall, please share your thoughts about what’s needed most to improve CTV advertising by taking this short survey.
Eric John leads IAB’s Video Center of Excellence, a dedicated unit within the IAB whose mission is to simplify the video supply chain, providing best practices and education for brands, agencies, and media companies to drive continued growth through the evolving convergence of television and digital video. Eric drives the center’s efforts in the development of market-making research, industry standards and best practices and buyer/seller terms and conditions. Before joining the IAB, Eric led digital services and strategy at the Alliance for Audited Media and the MPA. Eric also served as global director of publisher marketing at Nokia, managing the company’s world-wide mobile app developer ecosystem. Prior to Nokia, Eric launched and led advertiser brand engagement solutions for Yahoo!, creating advanced, data-driven video, mobile and interactive campaigns for brands such as Pepsi, Loreal and Nikon. Eric began his career in internet advertising at DoubleClick (Google) where he served in business and product development within the DART for Publishers (DFP) and DART for Advertisers (DFA) business units where he launched the industry’s first post-click “Spotlight” measurement tools. Eric is an alumnus of Miami of Ohio (BA) and Indiana University (MA) and is a graduate of Columbia University’s Product Management Program.