Connected TV (CTV) is offering brands an opportunity to engage with fragmented audiences, especially younger, digitally-native viewers. However, the shift to CTV brings several challenges. To fully embrace CTV, brands must navigate budget allocation issues, enhance measurement techniques, and ensure ads do not disrupt the viewer experience.
Key Opportunities and Challenges in CTV Advertising
- The shift of ad budgets to CTV is both complex and essential for brands. Traditional media buying practices often hinder this transition, making it difficult to demonstrate CTV’s incremental impact on media buys. However, the ability to access younger viewers provides a critical long-term growth opportunity.
- CTV offers a cost-effective advertising solution, especially for digital-first companies. Unlike linear TV, CTV allows for targeted ads that reach difficult-to-engage audiences, making it an attractive option for those seeking higher precision at a lower cost.
- One of the biggest hurdles, however, remains accurate and consistent measurement. Inconsistent data across platforms makes it difficult for advertisers to track CTV’s performance accurately. Solutions like Origin are working to bridge this gap, but scalable, standardized, and accurate cross-media measurement systems are still needed to fully harness CTV’s potential.
- Innovative ad formats—such as pause ads and shoppable ads—are becoming increasingly important in driving viewer engagement. These formats seamlessly integrate ads into content, creating a better user experience without disrupting the flow of the program.
- Additionally, Free Ad-Supported Streaming TV (FAST) channels are seeing rapid growth, offering a lean-back, channel-surfing experience that closely mirrors traditional TV. This provides brands with a new opportunity to reach diverse audiences in a linear TV like environment, combined with digital efficiencies.
To succeed in the rapidly evolving world of Connected TV, brands must embrace innovation and adapt their strategies to address key challenges.
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