The Urgency of Transparency, Control, and Data Use in CTV Advertising

By Will Kunkel, SVP of Marketing Solutions, Stirista

The need for clear metrics and a unified media strategy is critical for maximizing ROI

The digital video advertising landscape continues to expand rapidly, with spending expected to grow by 16% to $62.9 billion in 2024. Connected TV (CTV) advertising, in particular, is projected to see a 12% increase, while online video will rise by 18%, and social video by 20%. This surge in spending highlights the shift in media consumption as viewers increasingly cut the cord and migrate to digital platforms.

However, as CTV becomes an integral part of the media mix, the conversation around transparency, control, and data utilization has never been more urgent. With streaming-first TV strategies becoming a core target, advertisers must ensure that their investments are driving real outcomes, which requires tackling issues like data costs, fragmented media buying, and the need for clear metrics.

The data dilemma

While CTV advertising offers incredible opportunities for targeted, data-driven campaigns, it also brings challenges, particularly concerning the cost of data.

The high cost of acquiring audience data in the CTV space is one of the biggest barriers to effective advertising. Brand marketers are paying premium prices for data to refine their targeting, but this often leads to a disconnect when it comes to clear metrics and outcomes.

Advertisers often struggle to justify the costs because the attribution and targeting mechanisms in CTV are not transparent. Unlike traditional linear TV, where viewership and engagement metrics are well-established, CTV KPIs are fuzzy, with those investing in it finding themselves paying for data without fully understanding whether their ads are reaching the right audience or driving the desired behavior. The strength of CTV advertising comes from its capability to merge traditional awareness-driven strategies with direct response efforts, but this potential can only be fully realized if its attribution aligns with other digital formats.

The silo problem

In many organizations, traditional and digital media are still bought and managed by separate teams. This siloed approach can result in inefficiencies, confusion, and missed opportunities.

When different teams are responsible for various aspects of media buying, it becomes challenging to execute a cohesive omnichannel strategy.

Often, there is a lack of communication and centralized data organization between teams handling linear TV, digital, and CTV advertising, which can lead to redundancy in spending and gaps in targeting. CTV is still largely managed by the linear TV ad-buying teams, who continue to rely on traditional purchasing methods. Meanwhile, some CTV budgets are handled by digital media buying teams, who are knowledgeable about CTV’s data-driven potential but have less experience in planning campaigns based on content schedules, among other factors.

No longer the new game in town

Despite its rapid growth and the attention it’s garnering, CTV is no longer the new shiny object. It has matured significantly over the past few years, evolving from an experimental platform to a key player in the overall ad-buying mix. However, many marketers still perceive CTV as a novel, untested channel, which can lead to underinvestment or a reluctance to fully integrate it into their media mix.

This misconception needs to be corrected. CTV should no longer be viewed as an add-on or an afterthought in advertising strategies. It’s a mature, proven medium that can drive both brand awareness and direct response when used effectively.

Data transparency and attribution are a must

Just as it’s done for decades in linear TV, data transparency improves targeting accuracy and overall campaign performance. With clearer metrics, advertisers can refine their strategies in real time, ensuring that their ads reach the right audience and drive meaningful engagement.

Recent research shows that nearly 20% of CTV ad spend is lost to fraudulent or irrelevant impressions. As the rates of invalid CTV traffic rise, third-party validation is becoming essential to ensure that ads reach genuine viewers and produce measurable results.

Brands can achieve better outcomes with the same or even lower budgets by leveraging machine learning/AI and the latest data-driven tools which will enhance cost efficiency and performance. By analyzing each impression in real time, these solutions can predict the optimal CPM, ensuring advertisers get the most value from their ad spend. This approach not only maximizes ROI but also balances delivering impressions while optimizing costs. Additionally, these tools can seamlessly integrate into existing programmatic workflows, requiring minimal effort from teams while silently optimizing campaign effectiveness.

Building on advanced audience analysis and high-propensity segment modeling, AI-driven features offer a powerful foundation for efficient, high-quality programmatic advertising. Advertisers can track the performance of their CTV ads across the entire customer journey, from initial exposure to conversion, giving them greater insight into what’s working and where improvements are needed.

Originally posted on adweek.com October 2024