Analyzing the Top Grossing Connected TV Apps and Ad Supply Chain Trends in 2024
In August 2024, Pixalate released its Global Top Grossing Connected TV (CTV) Apps Benchmark Reports, providing a comprehensive analysis of the open programmatic advertising revenue generated by top-grossing CTV apps on various popular platforms. This extensive report draws data from an impressive pool of 5,000 CTV apps, including those that have been delisted, and analyzes a staggering 2 billion programmatic advertising impressions. Pixalate, a company established in 2012, has carved out a niche for itself in privacy compliance, ad fraud prevention, and digital ad supply chain data intelligence. Their expertise is trusted across the CTV, mobile app, and website ecosystems, and their methodologies are accredited by the Media Rating Council (MRC) for detecting and filtering sophisticated invalid traffic.
The reports aim to provide valuable insights and trends for the digital media industry, focusing on regions such as North America, Asia-Pacific, Europe, the Middle East and Africa, and Latin America. The data encompasses popular CTV platforms like Roku, Amazon Fire TV, Apple TV, and Samsung Smart TV. Pixalate’s data science team conducted thorough research and analysis to compile these findings, which are particularly insightful for stakeholders looking to understand the dynamics of programmatic advertising on CTV platforms. The primary goal is not to impugn anyone’s reputation but to offer transparency and useful information to the industry.
Among the key findings, Asia-Pacific and North America emerged as the top regions for CTV app revenue. On Roku, a music streaming app led the charts, while an entertainment app topped the list on Amazon Fire TV. Apple TV saw a fitness app and a news app leading in terms of gross revenue. However, the report also highlighted a concerning trend: Europe had the highest percentage of fraudulent CTV apps. The overall CTV app market experienced a significant increase in ad fraud compared to the same period in previous years. Despite these challenges, Pixalate’s MRC accreditation assures that their data is both reliable and accurate, making these reports a crucial resource for understanding the current state of the CTV app market.
In a related release, Pixalate’s Q2 2024 Connected TV (CTV) Ad Supply Chain Trends report revealed that global CTV open programmatic ad spend rose by an impressive 63 percent year-over-year, reaching $5.9 billion. This report covers the state of open programmatic CTV advertising in four key regions: North America, EMEA, APAC, and LATAM. The data science team at Pixalate analyzed over 100,000 CTV apps and 6 billion ad transactions to compile this extensive research. North America saw the highest increase in open programmatic ad spend for CTV, with a 64 percent rise compared to the previous year. Hulu emerged as the top-grossing app in North America, generating an estimated $154 million across various app stores.
Another significant finding from the Q2 2024 report was the rise in global invalid traffic (IVT), which increased to 19 percent from 17 percent in Q2 2023. Google’s Android platform dominated the CTV operating system market share in the Asia-Pacific region, holding an 84 percent share. In EMEA, LG saw a 42 percent increase in quarterly device market share, now holding a 17 percent overall market share. Roku maintained its stronghold in the LATAM region with a 48 percent device market share, marking a 23 percent increase from the previous quarter. The increasing use of bandwidth-intensive and latency-sensitive applications like 4k and 8k streaming, online gaming, and AR/VR necessitates that internet service providers update their networks and Wi-Fi experiences to meet these new demands.
To address these needs, high-quality Wi-Fi extenders and routers equipped with technologies such as Wi-Fi 6 and Mesh networking are essential. These devices not only improve performance but also offer features like parental controls and guest networks to enhance privacy and security. Upgrading networks is crucial for providing a better user experience, especially as streaming and gaming activities become more popular among consumers. Businesses, too, need to update their networks to keep pace with the growing demand for high-speed and reliable internet. Pixalate’s white paper offers detailed information on how upgrading networks and Wi-Fi can benefit both consumers and businesses, making it a valuable resource for stakeholders looking to enhance their digital infrastructure.
In another significant development, Nexxen, a unified advertising technology platform specializing in video and connected TV, announced a partnership with Vevo, the world’s leading music video network. This collaboration allows Vevo to utilize Nexxen’s supply-side platform to expand its programmatic footprint, providing access to its premium inventory, particularly on connected TV. Vevo boasts a vast library of over 900,000 music videos available on YouTube and its own app, amassing approximately 25 billion views worldwide per month. The partnership enables Vevo to use its inventory more effectively, increasing demand through direct relationships and offering comprehensive deal capabilities.
Nexxen’s unique data capabilities further enhance audience targeting, improving Vevo’s programmatic monetization efforts. John Rogers, Vice President of Business Development at Nexxen, expressed excitement about the partnership and the opportunity to elevate the value of Vevo’s inventory. This collaboration also expands Nexxen’s audience reach and enhances the scale of their owned and operated content. Rob Christensen, Executive Vice President of Global Sales at Vevo, described Vevo as the bridge between marketers and pop culture through streaming music TV. With Nexxen’s advanced technological offerings and additional demand, Vevo can open up its highly sought-after ad inventory to new buyers, driving its programmatic business forward.
Pixalate also announced a collaboration with Safe Exchange, a company owned by APMC, to improve programmatic ad decision-making and better serve global audiences. Safe Exchange will work with Pixalate to uncover and solve problems in programmatic advertising, using Pixalate’s tools to enhance trust and transparency in CTV programmatic advertising. Daniel Riddell, Chief Technology Officer at APMC, stated that Pixalate is a natural choice for exploring the use of enhanced data in ad revenue. Kidoodle.tv, an APMC-owned CTV app, ranks among the top 15 Roku CTV apps for open programmatic ad quality in North America and Latin America on Pixalate’s CTV Publisher Trust Index.
In January 2024, Kidoodle.tv earned the second spot in North America for ad quality. With an estimated $14 billion in ad spending during the upcoming election year, there is significant potential for publishers to earn revenue, but also risks in audience and brand protection. APMC is a media and technology company focused on providing innovative solutions to consumers and brands. They are leaders in safe streaming, offering solutions for revenue and brand protection. APMC owns popular products such as Kidoodle.tv, Dude Perfect Streaming Service, Glitch+, and Safe Exchange, which offers validated ad metadata, unique monetization opportunities, and precise ad decisioning and delivery.
Safe Exchange’s suite of products includes Adcurate, Adsource, and Adfilter, creating new revenue opportunities while ensuring ad safety for publishers and audiences. Pixalate, founded in 2012, is a global platform for privacy compliance, ad fraud prevention, and data intelligence in the digital ad supply chain. Trusted by regulators, advertisers, publishers, and financial analysts across the CTV, mobile app, and website ecosystems, Pixalate is accredited for detecting and filtering sophisticated invalid traffic. APMC has over a decade of experience in reaching hundreds of millions of homes globally with their streaming and monetization solutions, making them a formidable player in the digital media landscape.
The combined efforts of Pixalate and Safe Exchange aim to create a more transparent and trustworthy programmatic advertising environment. As the digital advertising landscape continues to evolve, collaborations like these are crucial for addressing the challenges of ad fraud and privacy compliance. By leveraging advanced data analytics and fraud detection technologies, these companies are setting new standards for the industry. The insights provided by Pixalate’s reports and the innovative solutions offered by Safe Exchange are invaluable resources for stakeholders looking to navigate the complexities of the digital ad supply chain and maximize their advertising revenue.
In conclusion, the reports and partnerships highlighted in this article underscore the dynamic nature of the connected TV and programmatic advertising landscape. With significant growth in ad spend and the rise of new technologies, stakeholders must stay informed and adapt to the changing environment. Pixalate’s comprehensive reports provide a wealth of data and insights, while collaborations with companies like Safe Exchange and Nexxen demonstrate the importance of strategic partnerships in driving innovation and ensuring the integrity of the digital ad ecosystem. As we move forward, these developments will play a critical role in shaping the future of connected TV and programmatic advertising, offering new opportunities and addressing emerging challenges in the industry.