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Mar 27
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Navigating CTV Advertising: Taking Control in a Fragmented Landscape

In today’s shifting TV landscape, advertisers are navigating a dynamic mix of opportunities and challenges, particularly when it comes to connected TV (CTV). With the rise of over 32,200 linear channels and 89 streaming video sources in the US alone, viewers have unprecedented access to a vast array of content. 

This explosion of options has revolutionized media planning. According to a recent report from Nielsen, US marketers reallocated 45% of their ad budgets to CTV in 2023. With so much on the line, advertisers need to get it right. In this blog, we’ll explore the complexities of CTV advertising and outline strategies for advertisers to navigate this fragmented landscape successfully.

Fragmentation Woes: Challenges in CTV Advertising

A major challenge facing the CTV ecosystem is fragmentation. Unlike traditional linear television, where advertisers can reach broad audiences through a handful of major networks, CTV spans numerous platforms, apps, and devices. According to Comscore, as streaming TV gains momentum, a significant portion of newly acquired viewing hours—75% to be exact—are spent on content beyond the top six streaming apps like Netflix, YouTube, Prime Video, Hulu, Max, and Disney+. Peter Crofut of the Media Exchange emphasizes that the CTV industry is still relatively young and lacks significant mergers and acquisitions, a trend expected in a rapidly expanding market. Additionally, major CTV publishers and streamers often operate as walled gardens, prioritizing direct sales over transparency. This ongoing fragmentation in CTV results in inefficiencies in ad buying, negotiation challenges, and campaign management and measurement complexities across various platforms.

Frequency Capping Dilemma: Addressing Repetitive Ad Fatigue

The lack of frequency capping exacerbates the problem of fragmentation. Advertisers risk bombarding viewers with repetitive ads without adequate controls, leading to ad fatigue and diminishing investment returns. Improving frequency capping is a pressing concern across the entire CTV ecosystem, from advertisers to consumers. Addressing this issue necessitates using clean data and collaborative efforts among publishers, agencies, and platform and technology companies.

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Manual Campaign Execution Amidst Fragmented Data

In addition to grappling with the intricate landscape of streaming platforms, advertisers face the daunting task of managing linear buying, increasing their challenges. The administrative burden of manually overseeing these transactions further consumes valuable time and resources, diverting attention away from more strategic endeavors. As a result, advertisers navigate through a maze of data points scattered across various platforms, each offering only a partial glimpse into the effectiveness of their campaigns. This fragmented approach not only hampers their ability to gauge overall performance but also complicates decision-making processes, making it difficult to optimize advertising strategies effectively. At Choozle, we see agencies and brands going direct to publishers to save a few dollars on the average cost per thousand impressions (CPM). However, in doing so, they lose the ability to frequency cap at the individual or household level, leading to diminishing returns.

Create efficiencies with Consolidation and Frequency control

Where numerous streaming platforms and devices vie for viewers’ attention, Choozle provides advertisers with a centralized hub to manage their campaigns seamlessly. By consolidating various CTV inventory sources into a unified interface, Choozle streamlines campaign setup and management processes, empowering advertisers to reach their target audiences more effectively while gaining comprehensive insights into campaign performance.

According to data from eMarketer, 30% of marketers and publishers believe more efficient frequency capping would increase their CTV advertising spend. The good news? Choozle’s advanced frequency control features enable advertisers to strike the right balance between exposure and engagement. With the ability to set frequency caps and leverage sophisticated targeting options, advertisers can ensure that viewers receive ads in a timely and non-intrusive manner. By tailoring ad frequency based on audience segments and demographics, Choozle enables advertisers to deliver personalized and relevant ad experiences, driving higher engagement and maximizing the impact of CTV advertising efforts.

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CTV and Data Tracking: A New Dimension

One of the unique aspects of CTV advertising is its ability to track data in a manner distinct from traditional digital channels. While CTV operates in a cookieless environment, it uses other mechanisms to track viewer behavior and engagement. Advertisers can gather valuable insights into audience preferences, viewing habits, and content consumption patterns through device IDs, IP addresses, and other proprietary tracking methods. This data enables advertisers to deliver more personalized and relevant ads, enhancing the effectiveness of their CTV campaigns.

Deciphering CTV Ad Performance: Understanding Measurement and Attribution

Measuring and attributing the effectiveness of Connected TV (CTV) ads is a powerful capability. Here’s a comprehensive elucidation of how CTV measurement and attribution function:

1. Delivery and Household Identification:

  • Initially, an ad is transmitted to the CTV advertising platform, targeting a specific household.
  • The platform identifies and catalogs the household’s IP address within an exposure file.

2. Device Connectivity Mapping:

  • A device graph calculates any additional devices linked to the same IP address within the household.
  • Devices such as mobile phones, laptops, and others used by household members are included in the exposure file.

3. Action Recording:

  • When a connected device within the household is used to perform the desired action prompted by the ad (e.g., visiting a website or making a purchase), relevant data is captured via a pixel and stored in an outcome file.

4. Result Attribution:

  • Matching IP addresses are identified by meticulously comparing data from exposure and outcome files.
  • These IP matches are attributed and documented, indicating that someone within the household completed the intended action directly from viewing the CTV ad.

A Clear Path to CTV Advertising Success

Ultimately, success in CTV advertising requires a comprehensive understanding of the challenges and opportunities inherent in the ecosystem. Integration with other channels is paramount for optimal outcomes, fostering a genuine omnichannel strategy. By expanding to three or more channels, companies can boost their order rate by a substantial 494%. By navigating the complexities of fragmentation, frequency capping, identity frameworks, and data tracking, advertisers can take control of CTV and unlock its full potential as a dynamic and effective advertising channel in the digital age.

Why Go it Alone?

Discover how Choozle, your strategic partner in navigating the modern media landscape, can help with strategic planning and precision media buying across CTV and other channels for a high-impact omnichannel approach. Schedule a conversation today.

About the author:

As Vice President of Marketing, Annie Wissner oversees all corporate marketing functions at Choozle, including brand management, go-to-market strategy, product, digital, demand generation, partnerships, and media relations. She has proven success in start-up and enterprise environments, as well as in domestic and international markets. She is recognized for building strong brands using integrated marketing methods and ABM-centric demand generation and has a track record of establishing revenue-generating programs. A key contributor to strategic business planning, with expertise in leading, managing, and developing long-term growth plans and digital transformation.

About The Author