CTV is forecasted to surpass linear ad spend this year, but challenges persist due to a lack of standardization and privacy concerns, says Valbona Gjini (VP of marketing & communications, ID5). She explains why the only way to unlock CTV’s potential is through a common currency.
The need for more standardization across CTV providers and privacy concerns hamper CTV’s progress. Moreover, the disjointed integration of CTV into omnichannel marketing strategies adds complexity. These hurdles can all be traced back to one fundamental issue – the absence of a common currency to identify users, collect their consent, and activate data effectively on CTV.
CTV’s challenges and the need for urgency
While CTV does not suffer from an identity crisis or vanishing cookies, advertisers must embrace a greater sense of urgency in advocating for creating a common currency. Such a currency would foster seamless communication between the siloed CTV platforms, addressing the challenges posed by fragmentation and inconsistency.
“The first challenge that brands run into is that not all CTV is created equal,” says Ana Milicevic, board member and adviser at ID5. “The CTV space is very fragmented, which makes everything from inventory forecasting to frequency capping to interpreting efficacy a recurring issue.”
The absence of a common currency to facilitate seamless communication across platforms has led to a hasty solution. CTV players rely on IP addresses for cross-platform connections, but these addresses need more privacy compliance and reliability, providing advertisers with an incomplete view of their investments.
CTV also presents challenges for advertisers who would like to utilize data collected in other channels for CTV activation, which, at the moment, is primarily done through data clean rooms. Companies use different clean rooms, which creates more fragmentation and limits a brand’s ability to scale an…