It can be said with certainty that Connected TV (CTV) will continue to experience rapid growth. With streaming TV viewership likely to overtake broadcast and cable in the US this year, most subscriber-based platforms have opened up ad-supported tiers, and it’s paying off.

Netflix, for example, is seeing 40% of new subscribers choosing its ad plan in countries that offer the tier, according to eMarketer. Other platforms will likely follow suit, expanding their ad-supported models and increasing options for advertisers. It makes sense then that CTV will account for just under half of total US TV ad spend by 2028, reaching $44.32 billion versus linear’s $45.32 billion.

Yet despite the huge investment and momentum behind it, several challenges persist for CTV. This includes identity management, measurement, transparency, and ad frequency. While the US is the most advanced in these categories, there nevertheless remain obstacles that create inefficiencies. This includes difficulty with attribution and brands failing to capitalise on CTV’s high engagement rates.

Overcoming these challenges will be crucial to unlocking the channel’s full potential. Thankfully, technologies are evolving to address them and, bolstered by industry collaboration, we can expect a key priority for 2025 will be addressing fragmentation in measurement and attribution by tying campaigns to a unified ID system.

Unlocking CTV’s omnichannel potential

A number of advanced technologies and identity solutions can address this, helping advertisers unlock the full effectiveness of CTV within a cohesive omnichannel strategy.

This includes developments in creative ID technology that allow for understanding which ad has been served to which person and how often. Linking a single creative ID will address many inefficiencies plaguing the industry, such as inconsistent metadata or fragmented reporting, and enable advertisers to improve attribution, streamline reporting, and optimise cross-platform coordination.

Indeed, reach and frequency solutions have also evolved to offer more granularity in reporting, delving deeper into metrics, including ad placement, engagement, geo, IP, and device ID, which can then be united with performance across other channels. For example, uniting real-time data from CTV with programmatic digital-out-of-home (prDOOH) ads enables advertisers to adjust campaigns based on these insights.

This can support the delivery of hyper-targeted, relevant, and dynamic ads with highly receptive audiences.  This not only enhances audience engagement but also provides deeper insights into the interplay between public and private touchpoints, driving more effective and cohesive campaigns.

Some tools can combine these insights with brand lift metrics. This helps advertisers to link media spend with measurable outcomes, helping chief marketing officers justify further investment in CTV.

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Challenges solved

The solutions may exist to bring CTV more in line with other channels, but the industry needs to work together to ensure these tools are being leveraged properly. Further cross-industry collaboration, between networks, platforms, and measurement companies will be essential in the coming years, ensuring that measurement and attribution solutions are standardized across the CTV ecosystem. Thankfully, broadcasters and technology companies are already collaborating and doing great things in this arena.

Building on the strong foundations established by CTV measurement frameworks like Innovid and Nielsien, efforts to create a consistent framework for identifying and tracking ads across platforms are gaining traction, and the focus is shifting towards connecting individual efforts into a unified framework.

For instance, the Ad Creative ID Framework (ACIF), proposed by the IAB Tech Lab, introduces a universal system to track which ads are served, to whom, and how often. Ensuring frequency caps are upheld and avoiding unnecessary transcoding during Server-side Ad Insertion (SSAI).

With huge sums of money flooding into the CTV ecosystem, the industry needs to address the channel’s ad-related shortcomings. Advertisers should seek out partners that give them access to the tools and metrics they need to find success. Those who embrace the right solutions and form the right partnerships will be well-positioned to lead in the next phase of CTV’s growth, achieving measurable success that was once out of reach.

CTV is a game-changing vehicle for advertising – Let’s protect it by continuing to challenge ourselves to improve measurement and implement the tools that can support this.

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