This Is Why Transparency Is So Important to CTV Advertising

CTV advertising is on the rise, thanks to upward trends in viewership across digital video channels. For the first time last summer, CTV watchtime overtook linear television, and the momentum is projected to gain steam through 2023.

Viewers are expected to watch an average of three hours and eleven minutes per day of digital video this year, in comparison to two hours and fifty-five minutes of linear. According to eMarketer, the largest portion of time is likely to be spent on connected devices like smart TVs and gaming consoles. Advertisers have shifted their ads budgets accordingly. As of Q1, 49% of advertisers say they’re no longer investing in linear at all.

And there’s good reason for advertisers to invest in CTV beyond increasing viewership. The promise of CTV targeting capabilities and creative flexibility offer benefits beyond the bounds of linear television.

But CTV advertising is working through growing pains that advertisers need to pay attention to. Let’s break it down.

A fractured ecosystem

For one, the CTV ecosystem is remarkably fractured since CTV campaigns vary across publishers and formats, including multiple sight, sound and motion channels. This obstacle makes it hard for advertisers and agencies to track return on investment efficiently or optimize CTV strategies.

Moreover, the murky ecosystem makes it easy for resellers to gauge advertisers on CPMs since it’s hard to grasp where exactly ads are being delivered and to whom. All of this is a perfect environment for advertising fraud which can also waste ad budgets.

The future of CTV is transparent and trackable

The push toward more transparency in digital advertising will benefit the ecosystem in a multitude of ways, including ensuring compliance with privacy legislation and ensuring consumer trust.

It’s also good for business. Being able to manage and track CTV campaigns across channels means ensuring advertisers are getting the most out of their ad budgets and avoiding waste spent on fraud. This is particularly important at a time when many companies are cracking down on spending.

Fortunately, technology is catching up to the opportunity. Adapex and PremiumMedia360 (PM360) have partnered to integrate CLIR CTV into our CTV inventory, making it possible for advertisers to manage and track CTV campaigns holistically across the Adapex network.

As viewer behavior continues to move away from linear television, advertisers need to look at ways to evolve their strategies to serve consumers where they’re at. Transparency in the CTV ad ecosystem will help advertisers respond quickly to new opportunities, optimize strategies, and stave off unnecessary spending.