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.
Disclaimer: The content of this page reflects Pixalate’s opinions with respect to the factors that Pixalate believes can be useful to the digital media industry. Any proprietary data shared is grounded in Pixalate’s proprietary technology and analytics, which Pixalate is continuously evaluating and updating. Any references to outside sources should not be construed as endorsements. Pixalate’s opinions are just that - opinion, not facts or guarantees.
Per the MRC,
“'Fraud' is not intended to represent fraud as defined in various laws, statutes and ordinances or as conventionally used in U.S. Court or other
legal proceedings, but rather a custom definition strictly for advertising measurement purposes. Also per the MRC,
“‘Invalid Traffic’ is defined generally as traffic
that does not meet certain ad serving quality or completeness criteria, or otherwise does not represent legitimate ad traffic that should be included in measurement counts.
Among the reasons why ad traffic may be deemed invalid is it is a result of non-human traffic (spiders, bots, etc.), or activity designed to produce fraudulent traffic.”