Programmatic video ads set to surge for connected TVs | Media Analysis | Business
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Video ads are set to surge for connected TV, with programmatic platforms now able to integrate across most major CTV delivery points.

CTV, a source of streaming video that the industry has been slow to monetise via advertising, is starting to make inventory available to programmatic advertisers.
With a diverse set of companies delivering video content to connected TV screens, including smart TVs, gaming consoles, Internet-enabled set top boxes and a host of apps that operate within these environments, publishers can monetise across most major CTV delivery points.

By 2018, three-quarters of US homes are expected to house connected TVs (TV sets that can stream content over the internet, either directly or through a device), according to TubeMogul’s recent Programmatic Living Room report. Viewability and completion rates on the format are also high, averaging over 85%, the report found.

"Connected TV has long been popular with advertisers due to its ability to deliver high engagement and viewability, but historically it lacked the scale of other formats,” said Taylor Schreiner, vice president of research for TubeMogul. “By making more connected TV ads available for automated buying, [it helps] unleash demand as brand advertisers [look to] to unify buying across screens."

Innovation in the addressable TV arena is rapidly accelerating, added Allen Klosowski, vice president of mobile and connected devices at SpotX, the ad inventory platform. “CTV can unlock incredible potential for new models of cross-device advertising that deliver high-impact, measurable video campaigns for brands.”

SpotX has been working to reduce buying complication for its partners via advances in cross-screen programmatic enablement. It recently partnered with two large US players – Frequency and Wurl – to bring premium inventory to the market.

“SpotX provides solutions to help publishers maximise advertising yield across all major connected devices via private and public marketplaces, as well as programmatic direct sales,” said Klosowski.

Some demographic groups, particularly younger viewers, watch made-for-digital video more than they watch traditional cable programming.
“Pay TV operators are using connected set-tops to deliver new streaming programming,” said Sean Doherty, CEO at Wurl, which provides cloud-based services for the distribution of streaming video programming to pay-TV systems.

He added: “SpotX is powering our rollouts of ad-supported streaming to millions of pay-TV subscribers.”

eMarketer forecasts that 59% of the $26.15 billion spent on US digital display ads this year will be transacted programmatically. By 2017, that portion will move closer to the broader average for programmatic activity (72%), accounting for 65%, or $7.43 billion, according to the report.