Why Do Some People Have Bad CTV Ad Experiences?
The allure of CTV is undeniable: It combines the broad reach and brand presence of traditional television with the precision of digital targeting. Yet, as advertisers venture into this new channel, many are met with a critical issue—irrelevant ads. This is not simply a symptom of the industry "allowing" poor advertising standards but rather a signal that the infrastructure to handle CTV's unique challenges is still maturing.
Advertisers are grappling with a hybrid model that shares characteristics with both traditional television and digital platforms like Meta. On the one hand, CTV provides the immersive brand experience of TV-quality content; on the other, it promises the data-driven targeting capabilities typically seen in digital channels. The catch? Unlike platforms like Meta, where mobile devices handle most interactions, CTV spans a variety of screens—smart TVs, smartphones, tablets, and PCs. This complexity introduces a range of new challenges for advertisers, particularly around how data is collected and linked to target the right viewer on the right device.
The challenges of cross-device targeting
One of the biggest hurdles lies in cross-device targeting, a crucial tool for CTV. Some companies have made strides with cross-device graphs that are extremely accurate in matching devices to individual users, which allows for effective audience targeting across screens. However, many CTV vendors rely on IP address targeting, a rudimentary approach given the fluidity of IP addresses. For instance, broadband providers like Comcast frequently change household IP addresses. This means that if an advertiser tries to target a user based on browsing data from the day before, they may inadvertently serve ads to a different viewer entirely, resulting in wasted impressions and missed opportunities.
This reliance on IP-based targeting can have a pronounced impact on the user experience, especially when language or content preferences don’t match. Imagine a viewer in Texas who only speaks English being served a Spanish-language ad due to outdated or incorrect targeting data. In cases like this, the viewer experience suffers, brands lose relevance, and neither party achieves the desired outcome. Despite these subpar results, the vendors providing this type of targeting continue to take credit for any transactions associated with those impressions, leaving brands in the dark about whether their ads actually reached the intended audience.
The role of multichannel video programming distributors (MVPDs)
Another factor complicating CTV advertising is the role of multichannel video programming distributors (MVPDs). MVPDs—companies that aggregate channels and distribute them to viewers—possess invaluable user data but typically sell only a portion of their ad inventory. The remainder is filled by the TV channels themselves or by third-party ad exchanges. As a result, viewers may experience ad pods where two different advertisers target the same or similar verticals, creating redundancy and confusion. This fractured setup also means that user data collected by MVPDs is often only partially relevant since they are not responsible for all ads served on their platform.
The limitations of MVPDs become evident in shared-household scenarios. When multiple household members use the same TV but have individual devices linked to the same MVPD account, targeting can become muddled. For example, if one person in a household frequently watches reality TV while another prefers car-related content, the system may struggle to identify who’s actually watching at any given moment. As a result, the ad inventory can be filled with irrelevant ads, confusing viewers and limiting the effectiveness of brands’ efforts to target their intended audience.
Another symptom of CTV’s growing pains is evident during binge-watching sessions. As users power through episodes, the ads served may increasingly come from low-cost providers or “remnant” inventory vendors—those who sell ad space at lower CPMs. These ads are often irrelevant and suffer from the same IP-based targeting pitfalls, compounding the issue of ineffective advertising and diminishing viewer engagement over time.
Some guiding principles to help advertisers make the most of CTV's potential
Solving these issues is no simple task, but a few guiding principles can help advertisers make the most of CTV’s potential. First, it’s essential to understand how audiences are constructed. Not all CTV vendors use the same targeting methods, and advertisers must ask the right questions. If a vendor relies heavily on IP-based or WiFi targeting alone, it’s likely time to look elsewhere. The best CTV providers work with accredited cross-device data companies, ensuring that targeting is not only accurate but also transparent. This transparency allows brands to measure and understand the actual reach and performance of their ads.
Another key consideration is how ads are purchased and served. For brands buying directly from networks, it’s important to work with networks that maintain policies to avoid repetitive verticals in the same ad pod and cap the frequency of ads per user. These safeguards can prevent viewers from seeing the same ad multiple times, improving both the ad experience and brand perception.
In sum, CTV offers tremendous promise, but reaching its full potential requires an industry-wide commitment to smarter, more effective targeting solutions. The rise of CTV demands new standards and approaches that reflect its unique position at the intersection of linear TV and digital advertising. One way to do this would be with some type of universal effectiveness score for all cross-device technologies, which would allow brands and marketers to trust the accuracy of the data they receive. As advertisers, platforms, and regulators align, CTV can evolve into a medium where both viewers and brands benefit—one where ads are relevant, experiences are seamless, and every interaction has value. The sooner the industry commits to these improvements, the sooner CTV can truly deliver on its promise as the future of TV.
[Editor's note: This is a contributed article from Keynes Digital. Streaming Media accepts vendor bylines based solely on their value to our readers.]
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