Why Do Some People Have Bad CTV Ad Experiences?

The appeal of CTV is undeniable: it combines the scale and brand presence of traditional TV with the precision of digital targeting. However, as advertisers venture into this new channel, many of them face a critical problem: irrelevant ads. This is not just a symptom of the industry “allowing” poor advertising standards, it is a sign that the infrastructure needed to handle the unique challenges faced by CTV is still maturing.

Advertisers are grappling with a hybrid model that shares characteristics with both traditional TV and digital platforms such as dead. On the one hand, CTV provides an immersive brand experience for TV-quality content; On the other hand, it promises data-driven targeting capabilities typically seen in digital channels. hunting? Unlike platforms like Meta, where mobile devices handle most interactions, CTV spans across a variety of screens — smart TVs, smartphones, tablets, and PCs. This complexity presents a host of new challenges for advertisers, particularly regarding how to collect and correlate data to target the right viewer on the right device.

Challenges Cross-device targeting

One of the biggest hurdles is cross-device targeting, an important tool for CTV. Some companies have made great strides in cross-device graphics that are highly precise in matching devices to individual users, allowing for effective audience targeting across screens. However, many CTV vendors rely on IP address targeting, which is a primitive approach given the fluidity of IP addresses. For example, broadband providers like Comcast change home IP addresses frequently. This means that if an advertiser tries to target a user based on browsing data from the previous day, they may inadvertently show ads to a completely different viewer, resulting in wasted impressions and lost opportunities.

This reliance on IP-based targeting can have a pronounced impact on the user experience, especially when language or content preferences do not match. Imagine that a viewer in Texas, who speaks only English, is shown an ad in Spanish because of outdated or incorrect targeting data. In such cases, the viewer experience suffers, brands lose relevance, and neither party achieves the desired outcome. Despite these subpar results, sellers who offer this type of targeting continue to take credit for any transactions associated with those impressions, leaving brands in the dark as to whether their ads are actually reaching their target audience.

The Role of Multi-Channel Video Programming Distributors (MVPDs)

Another factor that increases the complexity of CTV advertising is the role of multi-channel video program distributors (MVPDs). MVPDs — companies that aggregate channels and distribute them to viewers — have invaluable user data but typically sell only a portion of their ad inventory. The rest is filled by the TV channels themselves or by third-party advertising exchanges. As a result, viewers may encounter advertising models where two different advertisers target the same or similar segments, leading to duplication and confusion. This spotty setup also means that user data collected by MVPDs is often only partially relevant since they are not responsible for all the ads displayed on their platform.

The limitations of MVPDs become evident in joint family scenarios. When multiple family members use the same TV but have individual devices linked to the same MVPD account, targeting can get confusing. For example, if one family member frequently watches reality TV while another prefers car-related content, the system may have difficulty determining who is actually watching it at any given moment. As a result, ad inventory can be filled with irrelevant ads, confusing viewers and limiting the effectiveness of brands’ efforts to target their target audience.

Another symptom of CTV growing pains is evident during binge-watching sessions. As users play loops, increasingly displayed ads may come from low-cost providers or “residual” inventory resellers—those who sell ad space at a lower cost per thousand impressions. These ads are often irrelevant and suffer from the same risks as IP-based targeting, exacerbating the problem of ineffective ads and decreased viewer engagement over time.

Some guidelines to help advertisers make the most of CTV’s potential

Solving these issues is no simple task, but there are some guidelines that can help advertisers make the most of CTV’s potential. First, it is necessary to understand how audiences are built. Not all CTV sellers use the same targeting techniques, and advertisers must ask the right questions. If a vendor is relying too heavily on IP or WiFi targeting alone, it’s probably time to look elsewhere. The best CTV providers work with data companies across approved devices, ensuring that targeting is not only accurate, but also transparent. This transparency allows brands to measure and understand the actual reach and performance of their ads.

Another key consideration is how ads are purchased and displayed. For brands that buy directly from networks, it’s important to work with networks that maintain policies to avoid duplicate segments on the same billboard and limit the number of times ads should be repeated per user. These safeguards can prevent viewers from seeing the same ad multiple times, improving ad experience and brand perception.

In short, CTV offers tremendous promise, but reaching its full potential requires an industry-wide commitment to smarter, more effective targeting solutions. The rise of CTV requires new standards and approaches that reflect its unique position at the intersection of linear television and digital advertising. One way to do this is to use some sort of universal effectiveness score for all technologies across devices, allowing brands and marketers to be confident in the accuracy of the data they receive. As advertisers, platforms and regulators come together, live TV can evolve into a medium that benefits both viewers and brands – where ads are relevant, experiences are seamless, and every interaction has value. The sooner the industry commits to these improvements, the faster CTV can deliver on its promise as the future of television.

[Editor’s note: This is a contributed article from Keynes Digital. Streaming Media accepts vendor bylines based solely on their value to our readers.]

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