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Ad-supported kids, family streaming content gives boost to CTV advertisers | Media Analysis | Business | News

Ad-supported kids, family streaming content gives boost to CTV advertisers |  Media Analysis |  Business |  News

As consumers continue to shift from linear to streaming, understanding what ad experiences they find worthwhile has become more critical, and transparency will be the key issue the industry must address, says a research note from leading industry analyst Alan Wolk.
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The study by the TVREV co-founder noted that the rise of the streaming era and a booming connected television (CTV) industry has led to a transformative shift in media and entertainment, and gaining insight into understanding has become more important as ad-supported video-on-demand (AVOD) viewership in the US is increasing, with brands needing to figure out how to reach these audiences more effectively.

After speaking with executives at advertising agencies, media buying agencies, ad tech companies, brands, CTV apps, studios and streaming device manufacturers, Wolk revealed that consumers are now watching ad-supported CTV as much as ad-free, and are spending more time streaming than linear. Overall, he predicted linear would be the big loser as ratings fall and key segments are more easily reached on CTV.

Still, Wolk cautioned that the shift of ad budgets to CTV wasn’t happening faster because CTV inventory isn’t easy to buy. He also determined that the biggest roadblock CTV faces in the fight to get more advertising dollars is the lack of transparency about where ads are run when they are placed programmatically via programmatic open auction, i.e. open exchanges and open auctions.

While he noted that solutions exist, ranging from extended content IDs to watermarking, they need to be implemented on an industry-wide basis to help with measurement and verification issues. However, the study warned that not allowing brands to know where their ads were served was unsustainable and that they will not increase costs in a way that even remotely keeps up with viewership until it is resolved.

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On a brighter note, Wolk predicted that advertising-supported children’s and family programming will be one of the brightest spots at CTV. He noted that because American children’s television is subject to COPPA (Children’s Online Privacy Protection Act), everything must be purchased directly from the programmer. As such, this means that brands know exactly where their ads were served – what is shown, at what times, even where in the ad collections. He added that not only does a COPPA-compliant direct selling methodology help solve transparency issues, but they provide brands with a brand-safe and appropriate environment for their messaging.

However, Wolk advised brands to move quickly, predicting that as more families cut cable and sign up for ad-free streaming services, it will become increasingly difficult to reach those families. This will increase the value of these programs and platforms on ad-supported CTV.

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