Kick-off: Understanding the rise of connected TV (CTV)
Connected TV refers to Smart TVs and devices that enable on-demand video streaming.
With the rapid adoption of streaming services and connected devices in households (now present in over two-thirds of UK homes), CTV has transformed content consumption and unlocked new advertising opportunities. As the trend continues, CTV has emerged as a game-changer and an indispensable part of media buying, revolutionising how advertisers connect with audiences.
Advertisers, recognising CTV's potential, have started shifting their budgets to capture the growing audience on streaming platforms. But with new technology come new opportunities and challenges.
Despite CTV’s rapid expansion, key issues persist, including frequency management, lack of transparency and scale, and inadequate measurement. However, the past few years have seen a shift within the industry that has helped put CTV at the forefront.
Big moves from big players
As streaming companies spent 2024 fighting tooth and nail for CTV ad dollars, last year saw a shift from Programmatic Guaranteed to biddable Private Marketplace deals – ultimately allowing buyers to secure inventory at competitive prices while layering audience targeting.
Streaming giants Disney and Netflix are now offering Programmatic Private Marketplace buys via DV360 and Trade Desk through their ad-tiered services. Netflix has signed on with a list of data partners, while Disney established unique integrations with Walmart for retailer data. Meanwhile, Amazon is growing in popularity due to Prime Video Ads offered through their DSP, now including shoppable streaming ads and biddable live sports.
Other players in the streaming space have experienced a surge in traffic. ROKU and Paramount+ each gained over 2 million subscribers in Q3 2023, with the latter enhancing their ad offerings by incorporating more retail data.
Additionally, ad tech companies have been working on solutions to make CTV more appealing. Freewheel’s Audience Manager provides access to purchase intent audiences that are compatible with CTV buying. At the same time, PubMatic has developed a solution to help advertisers retarget iOS device owners after they've seen an ad on smart TVs.
While significant strides have been made to address issues related to scale and measurement, there are still areas that require further refinement and advancement in the CTV landscape.
Halftime analysis: Understanding the key challenges in CTV
Visibility and measurement: While programmatic CTV campaigns offer better visibility into performance, upper funnel channels like streaming can significantly impact outcomes downstream, even if they don't directly drive purchases. This has led to a demand for advanced measurement techniques, such as brand favourability and effects across all funnel stages.
Attention measurement: CTV viewers often use a second device while streaming ads, making attention measurement crucial for advertisers.
High costs and traditional practices: Despite the shift to programmatic, traditional TV advertising practices like upfronts and budget commitments remain prevalent, adding to the already high costs of CTV campaigns.
Transparency issues: Transparency continues to be a hot-button issue, with some companies selling bundled "mystery deals" that obscure where impressions are served across different apps owned by the same publisher.
Our game plan: Driving results with our unique offering
We’ve been at the forefront of overcoming obstacles in CTV, leveraging innovative platforms and strategic partnerships to enhance campaign effectiveness. By addressing key issues such as measurement, transparency, and cost efficiency, we ensure our clients can navigate the complexities of CTV with confidence.
We’ve integrated several publishers into our Magnite-powered ‘dentsu Marketplace’ solution, allowing:
Better targeting: by having it controlled on the SSP side
Reduced fees: by cutting down redundant intermediaries and having direct relationships with publishers, leading to better working media efficiency
Improved cost control: through buying from the most efficient paths, leading to the avoidance of hidden markups
Working with partners that already allow for more advanced measurement of CTV buys is how we address the current measurement-related challenges. By working with The Trade Desk, who are integrated with Happydemics Brand Lift Study partner, we have been able to run a study when managing a campaign for one of our large charity clients.
The study concluded that the campaign had been a success, achieving:
+40 pts uplift on brand image (rising it to Happydemics top 10% performing campaign)
+27 pts uplift on consideration (rising it to Happydemics top 5% performing campaign)
Match report: Four final takeaways
- Over half of advertisers now consider CTV a ‘must-buy’, with an estimated 20,000 new advertisers entering the streaming TV space in 2025.
- While programmatic CTV campaigns have addressed some challenges, questions around measurement, transparency, and high costs persist.
- We have led the way in overcoming these obstacles, leveraging innovative solutions and strategic partnerships to enhance CTV advertising.
- With the development of dentsu’s Total TV marketplace, advertisers now have access to a platform that offers high-quality auctions, full transparency, and advanced measurement capabilities. Total TV empowers advertisers to navigate the complexities of CTV with confidence, ensuring effective and efficient campaigns that drive meaningful results.
Don’t hesitate to get in touch if you’d like to discuss any of the above and learn more.
