Brands might be ploughing spend into connected TV but the medium is still suffering from many of the issues online marketing has yet to completely solve, with fewer than a third (30%) of advertisers having full transparency into where their ads appear, and even less (27%) gaining insight into the suitability of the shows ads run alongside.
So says a new study conducted by DoubleVerify, a software platform for digital media measurement, data, and analytics, in collaboration with IAB Europe which seems to pour cold water on the claims that CTV is data-driven marketing nirvana.
The report, which surveyed over 420 senior clients, complements the results of an analysis conducted by DoubleVerify last year, which found that one third of impressions are served into CTV environments where TVs are turned off.
This wasted digital investment on a hyper-premium channel is compounded by a sharp rise in CTV ad fraud schemes — which tripled between 2020 and 2022. Meanwhile, demand for CTV continues to grow beyond what individual broadcasters alone can serve.
Transparency and measurement were cited by respondents as key issues, with a major challenge for both advertisers and publishers being the availability and quality of measurement data on CTV.
However, the report notes that, while verification on CTV buys is being increasingly considered to support quality outcomes, only 37% of advertisers and 41% of publishers have fraud protection. Meanwhile, only 44% of advertisers and 39% of publishers are measuring whether their ads have been viewed.
While a separate WARC study maintained that CTV was cannibalising existing TV budgets, DoubleVerify maintains that despite these obstacles, optimism surrounding CTV remains high.
Some 95% of advertisers and 89% of publishers strongly believe that addressability and actionability are on the horizon for CTV, which will help advertisers drive outcomes from their campaigns and continue to fuel greater publisher investment.
For advertisers, CTV can be an attractive channel that provides an opportunity to access premium programming at scale — expanding and augmenting audiences they may already reach on linear TV.
Half (51%) of respondents cited scale as one of their key priorities, and, while CPMs on CTV are typically higher than those of other digital channels, 51% of advertisers also see investing in CTV as a way to achieve cost efficiencies compared with linear TV.
For publishers, the focus is on providing high-quality inventory and qualified audiences to expand yield and deepen revenue. The top priority for 51% of publisher respondents is convincing new partners to begin advertising on CTV. This is closely followed by increasing CTV revenues with new (46%) and existing clients (45%), and extending audiences (38%) to help their advertiser partners amplify their reach.
DoubleVerify SVP and managing director EMEA Nick Reid said: “The burgeoning CTV market will be a lightning rod for European brands in 2024, and the results of this report clearly indicate that media buyers are swiftly aligning their strategies to accommodate the unique objectives and opportunities the medium supports.
“In the face of this expansion, transparency is a critical limiting factor for more sure-footed investment and reliable results. As we collaborate with IAB Europe to promote transparency and quality verification, I am excited to see how advertisers and publishers will work to set the stage for the next phase of European CTV.”
Advertisers who contributed to the report include EasyJet, Samsung and Heineken, whose global media and data director Olya Dyachuk said: “CTV shows strong potential in markets with robust retailer data availability and capabilities, serving as a catalyst for driving revenue.
“Unlocking this potential hinges on integration at media planning and execution levels and incorporation of CTV into the media mix seamlessly alongside traditional AV and programmatic online video.
“Planning for high quality inventory, contextual relevance, and brilliant fit-for-purpose creative are also critical for success in the CTV space. This unified approach allows for optimum attention, resulting in better mental availability and maximum brand impact.”
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