Connected TV has the broad reach for brand building and the targeting capabilities for performance marketing, but advertisers are holding back for various reasons.
That’s according to Samsung Ads’ Q1 2025 “Ahead of the Curve” report (registration required).
Despite consumers shifting to streaming, the report found advertisers’ mindset, over-targeting and measurement fragmentation are causing them to underinvest in CTV.
The report has seven suggestions, in particular, for advertisers and the industry.
How advertisers and platforms should re-think CTV
1. Adopt a full-funnel perspective
The report suggests advertisers should recognize CTV’s potential as a lower- and upper-funnel medium. CTV’s targeting, context and measurement capabilities make it a strong medium for delivering efficient, broad-reach brand messages.
2. Balance performance and growth
The report emphasizes brands should not sacrifice long-term brand building for short-term KPIs. Effective media plans should reach a broad audience, including those not committed to a product, to drive sustainable growth.
3. Broaden targeting
Instead of hyper-targeted campaigns, the report suggests advertisers should leverage CTV’s targeting capabilities to right-size the reach of their branding messages to “category non-rejectors.”
By reducing wasted ad spend on out-of-target consumers, budgets can be reallocated to ensure effective frequency to in-category segments. Broadening targets can improve reach, long-term growth and lower media costs.
Dig deeper: 2025 is the year for B2B brands to embrace CTV
4. Improve measurement
The report identifies the industry’s need to develop metrics and buying mechanisms that allow for holistic planning and measurement.
This includes addressing the fragmentation of measurement across different media companies and creating a cross-publisher database for CTV that can be connected to linear TV measurement for cross-platform reach and frequency planning and optimization. CMOs need to scrutinize MMM models, the report said, to ensure they accurately reflect CTV’s value and cross-platform impact.
5. View CTV as a reach medium
Advertisers need to take a broader view of CTV’s digital capabilities, which offer advertisers the tools marketers need to build effective media plans, the report said.
6. Consider audience
The report recommends media plans should start with the audience in mind.
7. Focus on partnerships
Successful platform partnerships drive campaign results and innovation. Brands should ask their platform partners questions about cross-platform reach measurement, targeting across multiple devices, audience segment optimization, and using first-party data while maintaining privacy compliance.
Dig deeper: CTV ads beat mobile and desktop for viewer attention
The post 7 barriers advertisers need to overcome to grow CTV appeared first on MarTech.
# 7 Key Challenges Advertisers Must Overcome to Drive CTV Growth
Connected TV (CTV) has become a dominant force in digital advertising, offering brands a unique opportunity to reach highly engaged audiences. With the rise of streaming services and the decline of traditional cable TV, advertisers are shifting their focus to CTV to capitalize on its data-driven targeting and measurable results. However, despite its rapid growth, CTV advertising presents several challenges that brands must address to maximize its potential.
Here are seven key challenges advertisers must overcome to drive CTV growth:
## 1. **Fragmentation Across Platforms and Devices**
One of the biggest hurdles in CTV advertising is the fragmented ecosystem. Unlike traditional TV, where advertisers can buy spots across a few major networks, CTV consists of multiple streaming services, smart TV manufacturers, and device platforms. This fragmentation makes it difficult to execute cohesive campaigns, as advertisers must navigate different ad formats, measurement standards, and inventory sources.
### **Solution:**
To address this challenge, advertisers should leverage programmatic buying platforms that offer unified access to multiple CTV inventory sources. Additionally, working with demand-side platforms (DSPs) that support cross-device targeting can help streamline campaign execution.
## 2. **Lack of Standardized Measurement and Attribution**
CTV lacks a universal measurement standard, making it difficult for advertisers to track performance consistently across different platforms. Unlike traditional TV, where Nielsen ratings provide a common metric, CTV measurement varies by provider, leading to inconsistencies in reporting.
### **Solution:**
Advertisers should adopt multi-touch attribution models and work with third-party measurement providers to gain a clearer picture of campaign performance. Industry initiatives, such as the Interactive Advertising Bureau (IAB) and Media Rating Council (MRC), are also working toward standardization, so staying informed about emerging guidelines is crucial.
## 3. **Ad Fraud and Invalid Traffic**
As CTV advertising grows, so does the risk of ad fraud. Fraudsters exploit vulnerabilities in the ecosystem through tactics like device spoofing, bot traffic, and server-side ad insertion (SSAI) fraud. This results in wasted ad spend and inaccurate performance metrics.
### **Solution:**
To combat fraud, advertisers should work with trusted ad verification partners and use fraud detection tools that monitor for suspicious activity. Implementing ads.txt and app-ads.txt can also help ensure that ads are served on legitimate inventory.
## 4. **Limited Addressability and Targeting Capabilities**
While CTV offers advanced targeting compared to traditional TV, it still faces limitations due to privacy regulations and data restrictions. Some streaming platforms have walled gardens, restricting access to first-party data, which makes it challenging to execute precise audience targeting.
### **Solution:**
Advertisers should focus on contextual targeting, leveraging first-party data where possible, and exploring partnerships with data providers to enhance audience segmentation. Additionally, adopting privacy-compliant solutions, such as Unified ID frameworks, can help improve targeting accuracy.
## 5. **High Costs and Inventory Scarcity**
CTV ad inventory is in high demand, leading to increased costs compared to other digital channels. Premium inventory, such as ad placements on popular streaming services, often comes at a premium price, making it difficult for smaller advertisers to compete.
### **Solution:**
To optimize ad spend, advertisers should explore a mix of direct deals and programmatic buying to access cost-effective inventory. Leveraging audience extension strategies, such as retargeting across digital channels, can also help maximize reach without overspending.
## 6. **Ad Frequency and Viewer Experience Issues**
One common complaint among CTV viewers is ad repetition. Due to fragmented inventory and lack of centralized frequency capping, users often see the same ads multiple times within a short period, leading to ad fatigue and a negative viewer experience.
### **Solution:**
Advertisers should implement frequency capping across multiple platforms and use dynamic creative optimization (DCO) to serve varied ad creatives. Partnering with ad tech providers that offer cross-platform frequency management can also help reduce redundancy.
## 7. **Privacy and Compliance Challenges**
With increasing regulations such as GDPR, CCPA, and evolving privacy policies from major tech companies, advertisers must navigate complex compliance requirements when collecting and using viewer data.
### **Solution:**
To stay compliant, advertisers should prioritize transparency in data collection and ensure they work with partners that adhere to privacy regulations. Implementing consent management platforms (CMPs) and focusing on privacy-first targeting strategies, such as contextual advertising, can help mitigate risks.
## **Conclusion**
Despite these challenges, CTV remains a powerful advertising channel with immense growth potential. By addressing fragmentation, improving measurement, combating fraud, optimizing targeting, managing costs, enhancing viewer experience, and ensuring compliance, advertisers can unlock the full potential of CTV advertising. As the industry evolves, staying agile and leveraging emerging technologies will be key
Recent Comments