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Webinar Recap: Connected TV (CTV) Ad Supply Chain Trends in H1 2021

Piotr Boiwka
Nov 18, 2021 11:16:46 AM

Pixalate, together with Xumo, recently hosted a webinar to take an in-depth look at the latest trends in the Connected TV (CTV) open programmatic ad supply chain.  

Pixalate's data science team analyzed over 60,000 CTV apps in H1 2021 across major app stores, including Roku, Amazon Fire TV, and Samsung, to compile the research reviewed in the webinar.

Webinar speakers included:

  • Brooke Huntley, VP of Product Management, Pixalate
  • Joseph Lerner, Sr. Director of Sales, XUMO
  • Moderated by Tyler Loechner, Director of Marketing, Pixalate

Full Webinar: Connected TV Ad Supply Chain Trends in H1 2021

Key CTV statistics
  • 86% of the U.S. households were reachable via Connected TV in Q2 2021 (rise from 50% in Q4 2019)
  • CTV programmatic ad spend grew by 50% globally over the last year and 210% over the last two years
  • 45% of all open programmatic CTV ads are delivered on Roku devices
CTV Ad Supply Trends

The ad spend is booming, as is the number of channels that deliver ads on CTV. The total number of apps supporting programmatic advertising in CTV increased by 71% year over year. Interestingly, when the number of users and ad spend grew in 2020, the number of apps did not follow that trend. However, in 2021, the number of apps took off to meet rising user demand for unique content. The presence in the CTV space is no longer a desire but a necessity.

Pixalate has also observed a significant rise in the number of apps supporting open programmatic advertising on the Roku and Amazon app stores. For example, on Roku's platform, the number of apps with programmatic inventory increased by 49% YoY. For Amazon Fire TV, this rate reached 30%. Moreover, with Samsung launching its own DSP for CTV advertising, the CTV ad game has become even more compelling.

Roku, meanwhile, continues to be the device of choice. According to Pixalate’s data, 45% of all open programmatic CTV ads are delivered on Roku devices in H1 2021.

"In Q4 2020, we reported a 46% Roku Share Of Voice in open programmatic CTV. So they continue to hold strong, at least the first half of this year," said Brooke Huntley, VP of Product Management at Pixalate. "However, the rising share of voice in open programmatic CTV ads by Amazon, Samsung, and Vizio will be interesting to observe."

Ad Fraud Rates in CTV in 2021

According to Pixalate's analysis, the ad fraud level decreased in 2021 compared to the previous year. However, there is a difficult test upcoming: the holiday season. Nevertheless, the ad fraud rates in Q1 and Q2 2021 were lower than a year before, which is a promising prognosis.

Best practices to maintain ad fraud in the CTV ad ecosystem

According to Joseph Lerner, Sr. Director of Sales at XUMO, all CTV ad supply chain participants are responsible for maintaining quality and safe access to open programmatic advertising. Both publishers and advertisers should focus on trading inventory that is reliable, quality, and proven by independent entities. 

"I think another way is to set up direct connections. So to set up PMPs or programmatic guaranteed deals … with the supply partners you're accessing supply from," explained Lerner. "This way, you know exactly where it's coming from, from whom it's coming from and how it's getting to you."

It is also essential to know suppliers well and rely only on those who were checked thoroughly, ideally by MRC-accredited measurement companies. By cooperating only with trusted partners , the industry can lower ad fraud rates more. Industry standards such as ads.txt and sellers.json can make this task significantly easier for all sides.

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