Home On TV & Video CTV Is Not A One-To-One Channel, So Stop Buying It Like One

CTV Is Not A One-To-One Channel, So Stop Buying It Like One

SHARE:
David Nyurenberg, SVP of Digital, InterMedia Advertising

The advertising industry continues to buy connected TV the wrong way. We have carried over one-to-one programmatic logic from display and online video into a channel that behaves nothing like them. CTV is not a personal screen; it is a household screen.

Treating it like a digital channel has led to inefficiency, waste and false precision. A logged-in profile on a streaming app does not tell you who is watching. In a shared environment like a living room, targeting a female 25-54 on Disney+ could just as easily serve an impression to her child. Yet many buyers keep applying audience data as if CTV were a mobile app.

This is one of the reasons CTV is considered expensive. Third-party segments shrink available supply and force buyers to compete for the same small pool of impressions. CPMs rise. Scale disappears. And the data being applied often lacks relevance because it does not reflect the shared nature of household viewing.

Another issue that gets little attention: Geo delivery patterns always look the same. Activate a third-party segment, and you will see the same markets dominate delivery: New York, Los Angeles, Chicago, Miami, Houston. The system defaults to where scale is easiest to find, not where the audience that matters actually lives.

There is a better way. 

From false precision to real performance

We need to stop chasing impressions and start chasing impact. Start with your customer file. Identify the ZIP codes where your customers overindex. Use census data to understand the socio-demographic makeup of those areas. Unlike third-party audience segments, which are black boxes built from unverifiable sources, ZIP code data and census information are self-declared and real. 

These data points offer a clear, proven proxy for finding and scaling into the right households. From there, you can identify lookalike markets that share those same characteristics and represent meaningful growth opportunities.

There is a related problem tied to this legacy mindset. Because we are still applying old programmatic principles, buyers are conditioned to believe they need massive scale from a wide diversity of publishers. That thinking leads to reliance on inventory aggregators, ad tech resellers and unnecessary middlemen. In reality, the vast majority of CTV viewership sits with no more than 20 premium publishers, OEMs and vMVPDs. 

The most efficient and effective path is to form direct relationships with these partners. Cut out the ad tech middle layer. Doing so drives down CPMs, reduces fraud and inventory misdeclaration risk and builds long-term leverage. 

As spend grows with preferred partners, buyers benefit from stronger pricing and better access. There is far more value in building a direct relationship with a trusted legacy company like Disney, NBCU or Paramount than in transacting through a five-year-old venture-funded reseller that may not exist five years from now.

Subscribe

AdExchanger Daily

Get our editors’ roundup delivered to your inbox every weekday.

CTV should be planned like linear: context-driven, geography-informed and designed for households, not individual IDs.

The tools are there. What it takes now is the courage to break from outdated norms and the willingness to think differently about what CTV can and should be.

On TV & Video” is a column exploring opportunities and challenges in advanced TV and video. 

Follow InterMedia Advertising and AdExchanger on LinkedIn.

For more articles featuring David Nyurenberg, click here.

Must Read

Magnite Targets CTV, SMBs And Google's SSP Market Share

The SSP is betting on the DOJ’s antitrust remedies, plus closer relationships with agencies, DSPs and mid-sized advertisers, to help it eat some of Google’s lunch.

Zillow Pilots Containerized RTB, As It Rethinks The Equation Of Quality And Cost

Zillow is the pilot brand advertiser to test a new programmatic buying strategy known as containerized RTB. The strategy embeds the DSP or ad-buying platform intelligence, in this case the startup Chalice Custom Algorithms, within the SSP, which is Index Exchange.

Shell Shutters Its Volta EV Charging And Media Division

Volta Media, which is owned by the gas station and energy giant Shell, will be shuttered by November and its network of more than 2,000 charging stations will be dismantled this year.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters
Comic: Traffic Jam

People Inc. Has A New Name, But It Still Faces The Same Old Google Search Traffic Drought

People Inc. – the former Dotdash Meredith – is fighting on multiple fronts to keep its business growing as Google Search declines precipitously as a source of referral traffic.

Monopoly Man looks on at the DOJ vs. Google ad tech antitrust trial (comic).

More Like No Yield: A New Book Explores How Google Soaked Up The Web’s Ad Profits

“I tried to write it so it’s not exclusively for ad tech nerds,” Ari Paparo told AdExchanger of his new book, about Google’s advertising dominance. “And I mean that affectionately.”

CleanTap Filters Out ‘Sorta CTV’ Placements Before Buyers Can Bid On Them

CleanTap, an ad tech startup launched by the founder of Method Media Intelligence, wants to separate the wheat from the chaff in CTV by serving as a curation layer between DSPs and SSPs.