Connected TV (CTV) has emerged as a powerful advertising channel, offering both broad reach and precision targeting. However, despite its growing prominence in media strategies, many marketers still perceive CTV primarily as a performance marketing tool rather than a long-term brand-building asset.
A comprehensive analysis of the CTV landscape highlights key challenges and opportunities, including the ongoing shift in media investment, targeting strategies, and measurement limitations. Below are three critical insights shaping the future of CTV advertising.
1. Balancing Brand Equity and Performance Metrics for Sustainable Growth
While the digital advertising ecosystem increasingly emphasizes short-term performance metrics, long-term brand-building remains essential for sustained success.
Research indicates that a significant portion of advertisers are reallocating budgets towards media channels that offer measurable ROI and real-time insights. However, an overemphasis on immediate conversions can lead to the underutilization of CTV’s broader potential.
CTV provides access to vast audiences, with a growing share of households transitioning to smart TVs. Successful advertisers recognize the need to maximize reach across broad consumer segments rather than focusing solely on lower-funnel conversions. Brands that maintain a commitment to brand-building initiatives tend to outperform competitors over time.
2. Over-Targeting and Measurement Fragmentation Are Limiting CTV’s Growth
Despite its advanced addressability and targeting capabilities, CTV is often positioned as a lower-funnel digital channel rather than a scalable brand-building platform.
While audience segmentation and precise targeting have driven budget shifts to CTV, hyper-targeted campaigns may limit reach, inflate CPMs, and reduce overall efficiency. Expanding targeting parameters can enhance brand awareness and optimize long-term media effectiveness.
Additionally, measurement fragmentation remains a critical challenge. Unlike traditional television, where standardized metrics exist, CTV lacks a unified approach to data sharing and cross-platform measurement. Without standardized attribution frameworks, advertisers may struggle to fully integrate CTV into their broader media mix models.
3. The Need for Comprehensive Cross-Platform Measurement
Accurate measurement continues to be one of the most significant barriers to increased CTV investment. The absence of a central data provider for CTV, similar to linear television, complicates efforts to assess performance consistently.
Many marketing mix models (MMM) and multi-touch attribution frameworks fail to capture CTV’s true impact due to inconsistent reporting methodologies. As a result, advertisers risk misallocating budgets and undervaluing CTV’s long-term contribution to brand equity and customer acquisition.
Industry-wide collaboration is essential to establish more robust measurement standards that allow advertisers to integrate CTV effectively into holistic media strategies.
Unlocking the Full Potential of CTV
As the advertising landscape continues to evolve, marketers must adopt a balanced approach that leverages CTV for both immediate performance outcomes and long-term brand growth.
By broadening targeting strategies, advocating for improved measurement standards, and aligning CTV investments with overarching brand objectives, advertisers can fully capitalize on CTV’s unique strengths. A well-structured CTV strategy will not only drive short-term engagement but also establish a sustainable foundation for long-term brand success.
