Connected TV ads are attractive to marketers who want to capitalize on consumer viewing behavior and take advantage of digital-like targeting, according to Bob Liodice, president and CEO of the ANA.
But there are several key issues stymying widespread adoption of CTV as an advertising tactic.
While 60% of respondents who engaged in over-the-top advertising said audience penetration was a problem, even more – 69% – said measurement was their biggest challenge.
For instance, while Nielsen is priming a Total Audience product inclusive of connected TV and other streaming services by the end of the year, there isn’t a single measurement offering available to marketers yet.
Aksman predicted questions about “who owns the campaign at the agency level?” could also impact marketer’s CTV investments.
“From our vantage point, it sets off turf wars because people are asking, ‘Is it television or is it mobile or digital?’” he said. “A connected TV buy is executed exactly like digital, but in terms of consumer behavior, it’s more like TV since you’re sitting on the couch.”
Another concern marketers have is that connected TV inventory is scarce or comes at high CPMs, but Aksman claimed there is plenty of quality, affordable supply in the space. It’s just that premium content owners are still executing a majority of deals through direct sales or private marketplaces, he said.
“You see every major broadcaster launch or who will launch soon their broadcast network’s content in the OTT space,” he said. “We’re already seeing triple-digit growth. There is inventory out there for people who want it and who are willing to do the extra work to execute on OTT.”