The power of reaching consumers via the largest screen in the house is already well established. What marketers now need to know, in order to truly take advantage of ad-driven CTV, is how to achieve cost-effective scale.

Currently, most CTV ad slots are purchased in a similar fashion to traditional linear TV – via direct insertion order (IO). This ‘white glove service’ has proved effective for many years, and relies upon marketers contacting broadcasters and platforms directly, and agreeing the predetermined details of a campaign – such as cost, run-time, creative – in advance.

However, as CTV has grown, so has the need for a purchasing method that grants marketers the ability to achieve optimal ROI on CTV. Programmatic purchasing has evolved alongside CTV and now meets this need to provide marketers with a buying experience similar to that of digital, to more effectively maximise the potential of their ad budgets.

The evolution of programmatic CTV

In its early usage, the auction-based programmatic purchasing method was mostly utilised in order to sell unused ad inventory in digital environments. But as CTV publishers and platforms continue to permeate audiences, and buyers take to the increased control of the purchasing process that programmatic enables, the amount of spend in programmatic CTV has grown – spend increased by 97% in EMEA between 2020 and 2021 alone. As demand from buyers has increased, CTV publishers have responded by making more of their inventory available for programmatic trading.

Where programmatic CTV has differed from its digital counterpart is in its increased use of private marketplace deals. At its core, programmatic buying is an automated auction that allows buyers and sellers to be connected rapidly. Deals can be achieved via an open auction, where any number of parties can take part in the process, or via private auctions, where a publisher invites trusted advertising partners to participate. Additionally, there are preferred and guaranteed deals, offering priority access and pricing on pre-negotiated terms.

Private market auctions have flourished in CTV due to the nuances of the channel. TV ads are the most trusted among UK consumers, and it is therefore no surprise that CTV publishers want to keep a close watch on which brands are advertising on their platforms to ensure high quality ad experiences. For marketers, CTV is also unique in that data activation is often coming from the supply side of the programmatic chain, enabling marketers to access the rich first-party data of media owners and device manufacturers.

Tailoring your buying

While increasing amounts of spend is moving to programmatic, direct purchasing via an IO  also allows an effective way to transact for both buyers and sellers, and in many ways provides a similar offering. Buyers are guaranteed a quality ad slot while having clarity over delivery, while also able to harness CTV publishers’ premium inventory for a set price.

However, for buyers and sellers looking for flexibility in their transactions, programmatic purchasing can offer some additional perks. Guaranteed programmatic deals, for example, act in a similar way to direct IO — selling for a fixed price with a specific amount of inventory. But, additionally, doing so programmatically enables buyers to retain the benefits of utilising a DSP, giving users increased control — easing workflow and allowing for optimisation mid-flight — and  more holistic reporting.

But, while programmatic purchasing may technically be able to offer these benefits, advertisers might currently find their programmatic choices restricted by publisher capabilities and offerings. Buyside appetite for programmatic executions shows no signs of slowing, so ultimately CTV publishers and broadcasters who are amenable to programmatic routes stand to benefit.

Taking buying to the next level

Programmatic ad buying in digital environments is at a crossroads. With third-party identifiers set to be phased out, there is an increasing importance being placed on first party data — and as a result, on the owners of this data, such as publishers and device manufacturers — to ensure effective targeting and measurement.

Traditional measures such as Barb have provided advertisers with a base level of insights in order to effectively run campaigns. However, the emergence of technology like automated content recognition (ACR) – a privacy-first, anonymised alternative content identification technology – and first party data from platforms and device manufacturers gives buyers more granular insights to drive their campaigns at scale and speed.

These insights can then be fed back into a marketer’s buying strategy, allowing for fine-tuning of campaigns in-flight. Furthermore, utilising programmatic CTV can turn the medium into the cornerstone of an omnichannel campaign. This approach – which gives marketers the ability to run a cohesive, holistic campaign across multiple devices – allows for optimal targeting and retargeting throughout the sales funnel. By identifying and retargeting exposed audiences across devices, with differing creative, marketers can better tell the story of their campaign and grab consumer attention.

For marketers looking to generate the best ROI, and gain maximum reach and impressions via CTV in a cost effective way, finding a balance between direct and programmatic deals is vital. While there are currently similarities in both purchasing methods, as publishers compete for ad spend investments, the additional flexibility of programmatic and offer of tailored purchasing options will become a differentiator. In turn, the greater autonomy, transparency, measurement, and targeting capabilities will become central to every campaign on the channel, and buyers will increasingly be looking towards programmatic CTV.

However, as the market becomes more fragmented, and the increased cost of living hits the pockets of UK audiences, a growing number of viewers are seeking out ad-supported CTV offerings. Two-thirds of consumers state they would prefer watching a free ad-supported streaming service over a fee-based subscription option.

And where consumers head, brands are sure to follow. Marketers spent nearly £1 billion on advertising in CTV environments last year. This growth is only set to continue, with a predicted £2.3 billion being spent in 2026 in the UK alone. At the same time, this expanding market has become a double-edged sword for advertisers. While CTV offers increasing insights and access to more varied and niche audiences at scale, the audiences are watching across a number of platforms — with more options being introduced regularly — creating real challenges for cross-platform media buying and measurement.

With a growing interest in CTV’s potential to enhance the consumer viewing experience while also improving ROI on TV ad spend, advertisers must identify ways in which to measure, and maximise, the success of investments. This is especially true when investing in new channels and for those taking an experimental or staged approach in redistributing spend from linear to CTV — to provide accurate measurements of success, a holistic view across multiple channels must be achieved.

For the TV advertiser, new targeting and measurement strategies, such as those using Automatic Content Recognition (ACR) — when used in conjunction with traditional TV measurements — can solve fragmentation and empower marketers to make smart, data-driven advertising decisions.

Obtaining the full picture of TV data

Traditional industry measurement organisations, such as Barb, have long played a role in understanding audiences, and as TV viewing habits have evolved, so too have their practices. Barb, for example, recently announced plans to broaden its measurement remit to include video streaming platforms in a reflection of increased viewers on these channels. But if advertisers are to understand, and optimise, the success of their investments they will need to achieve a full audience, cross-channel picture, which broader, traditional industry reports alone cannot provide.

Using new datasets such as ACR — a privacy-first, anonymised alternative content identification technology — advertisers can understand a viewer’s content consumption to generate a more detailed picture of their viewing profile. By conducting a ‘glass-level’ analysis of content — in other words, by reviewing everything that is seen on the TV screen — visibility of audience behaviours and preferences is increased.

Marketers are able to analyse not only the audience’s source, whether it be an inbuilt app, games console or other device, but also reveal additional information such as network, show name, and viewing time. Insights like this, gathered from ACR, can also be used to supplement audience segmentation for smarter cross-device media plans.

Unifying data for effective activation

In such a fractured market, the unified, holistic oversight that ACR gives marketers is indispensable. But gathering data is only the first step towards maximising ad spend. Marketers must activate their findings to effectively drive targeting across smart TV and connected devices environments.

Content-level targeting has always assisted marketers to reach their defined audience, but ACR data takes this targeting a step further; ACR is deterministic. It allows marketers to more accurately advertise to niche audiences across various content inputs, via packages of targeted anonymised audience segments.

The ingestion of data across multiple devices and channels means audiences can be filtered into specific demographics — gamers, for example, can be identified based on their gaming-device usage and those insights leveraged to place relevant ads on their smart TV, and other connected devices. Obtaining data diversity is important to enhance campaigns, but achieving it without a robust advertising solution can be difficult. By bringing all audience data under the same roof and layering ACR data with an advertiser’s first- and third-party data sets — such as demographics, geo-location, and shopping behaviours — marketers can build fuller audience profiles in a privacy-compliant manner.

Understanding campaign success

With media budgets under increasing scrutiny, there is a pressing need to measure and prove the ROI of advertising campaigns — especially for TV — and to understand on a granular level the investments which proved successful or unsuccessful, in order to improve effectiveness.

Linear TV has been hampered in the past by its more panel-based approach to measurement and inability to provide for deterministic insights, leaving advertisers with a limited line of sight to actual results. By contrast, ACR offers advanced measurement capabilities — including ad completion rates and conversions such as tune-in, app downloads, web traffic, location behaviour, and even purchase — that allow marketers to better understand the incrementality of their ad campaign.

The ability to leverage deterministic channel and audience data, along with supplementary industry insights, means marketers can not only optimise their marketing activations, but also continue to recognise and invest in the most suitable CTV channels for their objectives and audience.

As the CTV advertising space continues to become more competitive, marketers cannot dive into their investments blind. Granular audience measurement data is the antidote to this, providing a holistic view across input devices — vital to the optimisation of campaigns and audience targeting. While traditional industry measurements can be a strong foundation for creating a successful campaign, supplementing the insights with additional details derived from ACR data will give marketers the vital insights they need.