Widespread availability of online video content, instigated by factors like ubiquitous high-speed data connectivity, hyper-connected devices and living room experiences – are all playing their part in the explosion of video content consumption online. As consumption online is enabling the move from Linear TV to CTV, new requirements are emerging – the transition of traditional broadcast workflows to IP based cloud-infrastructure, the effective delivery of personalized streams and ads at low latencies over scalable non-homogenous infrastructures, the ability to monitor & correct quality of service and eventually improve the end user’s viewing experience.
With the growth in online consumption, the connected consumers’ expectation is also maturing, however, their experience is still lagging. As consumers move from Linear TV to streaming platforms, they expect a seamless & high-quality ad viewing experience – showing non-relevant ads
(42% of users feel that ads they view are irrelevant) or repeating the same ad over and over (73% users dislike repetitive ads) may accelerate tune-out. Another challenge with the ad viewing experience is the ad format and / or ad payload which should be adaptable to the viewer preference.
Digital advertising is undergoing a massive transformation. Data driven advertising in on the rise helping publishers enable advertisers drive better business outcomes. Advertisers want to be able to use their first party data in targeting viewers, a consistent measurement paradigm across all TV viewing platforms, and the ability to ascertain the efficacy of their ad spend and how that impacts the business outcome. This is often a challenge, because delivery of a single ad in the streaming industry can touch up to eight different video partners within the ad tech value chain, introducing complexities not limited to – errors in delivery, siloed data that is difficult to streamline, non-relevant ads and violation of frequency capping rules.
The streaming platforms have to balance their need to generate ad revenue against creating a great viewer experience for their end users. They have to maximize the ROI for the advertiser enabling them with a better ad targeting experience, and finally maximizing their monetization opportunities by selling their Ad inventory in the most effective manner.
All these are industry challenges that need a collaborative effort and ones that the Alliance can and has been helping address.