Navigating the Programmatic Frontier: The Case for Streamlining CTV

The programmatic ecosystem, especially within Connected TV (CTV), currently resembles a frontier landscape—untamed and rife with contention, affecting marketers and media proprietors alike.

CTV Insight on the Programmatic Supply Chain

Central to this tumult is the presence of intermediaries—entities that embed themselves in the supply chain without contributing any tangible value. It’s estimated that a mere 40% of advertising dollars actually reach the media owners.

A stubborn mindset persists among many buyers, one that resists scrutiny over their purchasing decisions. The pursuit of profit margins and the undercutting of media owner rates often overshadow the importance of quality. Even when brand messages reach a human audience, they’re frequently relegated to an afterthought.

Yet, this isn’t an issue that buyers shoulder alone. Media owners must diligently select demand partners and implement safeguards to preserve their brand’s integrity. For greater clarity and reduced wastage, both marketers and media owners must critically evaluate the intermediaries they engage with.

For Marketers – The CTV Landscape will change for the greater

Navigating the labyrinth of intermediaries can be daunting for marketers, but understanding the origins of their inventory purchases can yield significant long-term advantages.

Eliminating these intermediaries ensures that a greater portion of each dollar is invested in effective media, reducing the likelihood of brand messages appearing alongside unsuitable content.

Opting to retain intermediaries, however, risks media invisibility to actual viewers, diminished monetary efficiency, and overall lower performance.

For Media Owners – The CTV Vision will change for the greater

Media owners frequently encounter “demand” partners promising new and exclusive demand. Yet, these entities often merely connect to major Supply-Side Platforms (SSPs), siphoning off revenue that media owners could otherwise claim directly.

Beyond the financial hit, media owners risk their brand’s reputation to fraud and opacity issues. Engaging with these subpar “demand” partners strips them of control over their inventory’s market representation.

The Benefits of Consolidation for CTV Advertising

Properly executed, the removal of intermediaries benefits both marketers and media owners. It curtails unnecessary expenditure, enhancing the reach and impact of marketing dollars. Performance improves as well, with reduced latency, better viewability, and heightened engagement, allowing marketers to concentrate on innovation and driving outcomes.

Media owners, too, stand to gain. Fewer intermediaries mean reduced operational costs and an augmented bottom line, free from entities that previously chipped away at profits. With fewer concerns about traffic quality, media owners can dedicate more resources to innovation and creativity.

The Risks of Inaction in the current solution

Maintaining superfluous intermediaries bolsters fraudulent traffic providers and potentially finances illicit activities, eroding trust within the industry. Removing these players reduces associated risks in programmatic dealings, leading to lower verification expenses, operational costs, and infrastructure overhead, culminating in a superior experience for content consumers. Moreover, excising intermediaries allows the industry to focus on innovation and the development of new tools and technologies.

However, intermediaries are not all alike. Distinguishing beneficial from detrimental ones is key. The IAB Tech Lab has introduced standards such as ads.txt, app-ads.txt, sellers.json, and the supply chain to identify and eliminate harmful intermediaries. Utilizing these resources and conducting due diligence simplifies the process of vendor consolidation and the selection of value-adding partners.