Recent news about programmatic advertising Connected TV Apps Monetization
Pixalate’s Q2 2024 CTV Ad Supply Chain Trends report has made waves in the advertising industry by shedding light on the evolving landscape of connected TV (CTV) ad trends across four major regions: North America, EMEA, APAC, and LATAM. This comprehensive analysis provides a deep dive into the state of open programmatic CTV advertising, offering invaluable insights into ad spend trends, device market share statistics, and the prevalence of invalid traffic, including ad fraud. The report focuses on popular platforms such as Roku, Amazon Fire TV, Samsung Smart TV, and Apple TV, making it an essential read for anyone invested in the future of CTV advertising.
The data science team at Pixalate analyzed over 100,000 CTV apps and nearly 6 billion ad transactions to compile this extensive research. One of the most significant findings is the remarkable increase in CTV ad spend in North America, which saw a 64% year-over-year growth. This surge was followed by APAC at 23%, LATAM at 22%, and EMEA at 9%. These figures highlight the rapid adoption and monetization potential of CTV platforms in various regions, with North America leading the charge. The report also identified Hulu as the top-grossing app for CTV advertising in North America, earning an estimated $154 million, underscoring the platform’s dominance in the market.
However, the report also brings attention to a concerning trend: the global invalid traffic rate increased to 19% in Q2 2024, up from 17% in Q2 2023. This rise in invalid traffic, which includes ad fraud, poses a significant challenge for advertisers and publishers alike. The report highlights the need for robust measures to combat ad fraud and ensure the integrity of the CTV ad marketplace. Google’s Android was found to have the highest estimated CTV operating system market share in APAC, at 84%, while LG gained a significant quarterly device market share in EMEA (42%), with a total share of 17%. Roku continues to maintain the highest device market share in LATAM at 48%, a 23% increase from the previous quarter.
The growing popularity of heavy online activities such as 4K and 8K streaming, online gaming, and AR/VR applications is driving the need for internet service providers to update their networks, including Wi-Fi, to ensure optimal performance. The report emphasizes that upgrading networks and Wi-Fi capabilities is crucial for providing a seamless and efficient online experience for consumers. As more bandwidth-intensive and latency-sensitive activities become mainstream, the demand for robust network infrastructure will only increase. This trend underscores the importance of continuous investment in network upgrades to meet the evolving needs of consumers.
In another noteworthy development, Nexxen and Vevo have partnered to expand Vevo’s programmatic advertising footprint, providing advertisers access to Vevo’s extensive library of 900,000+ music videos through Nexxen’s supply-side platform. This partnership aims to enhance Vevo’s programmatic monetization efforts by leveraging Nexxen’s advanced technology to drive reach and connections across Vevo’s music video network. With approximately 25 billion views per month, Vevo is a major player in the music video streaming industry, and this collaboration is expected to significantly boost its programmatic business.
Nexxen’s unique data and proprietary identity graph are instrumental in enhancing audience targeting for Vevo, allowing advertisers to reach their desired demographics more effectively. The partnership also provides comprehensive deal capabilities and self-service tools to advertisers, making it easier for them to access Vevo’s premium inventory. John Rogers, Vice President of Business Development at Nexxen, expressed his enthusiasm about the partnership, highlighting the opportunity to elevate the value of Vevo’s inventory and attract more demand through direct relationships.
Rob Christensen, Executive Vice President of Global Sales at Vevo, described Vevo as the ‘bridge’ in the advertising landscape, connecting marketers with pop culture through streaming music television. With Nexxen’s technology and additional demand, Vevo can now offer its premium ad inventory to new buyers and continue to grow its programmatic business. This partnership not only expands the audience reach of Nexxen but also enhances the scale of its owned and operated content, providing advertisers with more opportunities to engage with their target audiences.
Ad Age’s Datacenter Weekly newsletter for marketing and media professionals also sheds light on the current state of smart TV app usage. According to Inscape’s latest trend report, smart TV app usage has leveled off, while streaming continues to grow. This trend indicates that while consumers are increasingly turning to streaming services for their entertainment needs, the number of smart TV apps they use remains relatively stable. This finding has important implications for advertisers and content creators, as it suggests that focusing on popular streaming platforms may yield better results than investing in a wide range of smart TV apps.
The inaugural Ad Age Tech Power List honors the biggest brands and brightest startups in marketing and technology, highlighting the industry’s shift towards data-driven solutions and programmatic advertising. The list features names from companies like Google, Amazon, and TikTok, as well as emerging companies like Tru Optik and LoopMe. This recognition underscores the importance of innovation and technological advancements in the advertising industry, as companies strive to stay ahead of the curve and deliver personalized, effective advertising campaigns.
Employment in advertising and related services saw a sharp decline in May 2021, reflecting the challenges faced by the industry during the pandemic. However, the continued growth of streaming and programmatic advertising offers a silver lining, as these areas present new opportunities for revenue generation and audience engagement. The focus on data-driven solutions and advanced technologies is likely to drive the industry’s recovery and growth in the coming years, as advertisers seek to optimize their strategies and maximize their return on investment.
The IAB Transparency & Consent Framework plays a crucial role in helping websites and their partners communicate their data privacy policies to users. By being part of this framework, websites and their partners demonstrate their commitment to responsible data practices and transparency. This is particularly important in the context of programmatic advertising, where the use of cookies and personal data is a common practice for providing personalized online experiences. The framework ensures that users are informed about how their data is collected and used, and gives them the option to manage their privacy settings.
Overall, the recent developments in programmatic advertising, connected TV apps, and monetization highlight the dynamic nature of the industry and the ongoing efforts to adapt to changing consumer behaviors and technological advancements. From Pixalate’s comprehensive analysis of CTV ad trends to Nexxen and Vevo’s strategic partnership, these insights provide valuable guidance for advertisers, publishers, and technology providers looking to navigate the evolving landscape of digital advertising. As the industry continues to innovate and evolve, staying informed about these trends and developments will be crucial for success.