Campaign India Team
4 days ago

CTV’s growing pains: Big spend, bigger blind spots

As connected TV becomes a media mainstay, marketers face a sharp paradox—rising ROI hopes, but murky metrics and mounting fraud risks.

As per DoubleVerify survey, 41% of viewers now prefer ad-supported content over paid subscriptions, reflecting both subscription fatigue and growing comfort with ad-funded models.
As per DoubleVerify survey, 41% of viewers now prefer ad-supported content over paid subscriptions, reflecting both subscription fatigue and growing comfort with ad-funded models.

Connected TV (CTV) is no longer an experimental line item in media plans—it has cemented its place in the advertising mainstream. A new report by DoubleVerify, ‘DV Global Insights: Trends in the Modern Streaming Landscape’, maps the contours of this transformation, shedding light on both the promise and the persistent pitfalls of CTV advertising.

The findings, based on proprietary measurement data and a global survey of 22,000 consumers, underline a dual reality: while advertisers are scaling up investment in CTV with impressive momentum, they’re also contending with serious challenges related to transparency, fraud, and measurement standards.

CTV: From the sidelines to centre stage

CTV refers to ad-supported content delivered through internet-connected televisions—via apps or streaming devices—and offers brands granular targeting based on user data and viewing behaviour. In India, and globally, CTV has seen a dramatic shift in stature. Once viewed as a novelty or confined to pilot campaigns, it is now a core part of the media mix.

DoubleVerify’s own data reflects this leap. In 2024 alone, CTV ad impression volumes rose by 66% year-over-year, with markets such as the Netherlands, Indonesia, and Singapore leading this surge.

“CTV has become a centerpiece of digital video strategy with huge growth potential for both branding and performance campaigns,” said Mark Zagorski, CEO of DoubleVerify. “It is still a maturing medium, however, and this report highlights the very real challenges inherent in that evolution.”

Indeed, while CTV’s rise is undeniable, the ecosystem is still working through growing pains.

Ad spend rising—so are the blind spots

Marketers are increasingly bullish on CTV’s return on investment. According to DV’s companion survey of nearly 2,000 global marketers, 72% say ads placed in CTV environments outperform their campaign baselines. A significant 54% of marketers increased their CTV spend over the past year, and another 66% of non-CTV advertisers plan to enter the channel within the next 12 months.

Yet, this surge in enthusiasm comes with caveats. Advertisers are wary of the operational opaqueness that still dogs CTV. For instance, only 50% of CTV impressions offered full app transparency in 2024, meaning marketers often don’t know where exactly their ads are appearing.

As Zagorski notes, “A lack of transparency, an increase in rogue behaviour, and the lack of industry operational standards create an environment in which media waste is becoming a growing issue. These are challenges that a combination of technology innovation plus industry collaboration can address to the advantage of all advertisers.”

Wasted spend: The high cost of low visibility

Perhaps the most alarming aspect of the report is the sheer waste resulting from unresolved issues like the ‘TV Off’ problem—where ads continue to run after the screen is turned off.

Such inefficiencies are not isolated. Without safeguards, advertisers lose an average of $700,000 per billion impressions in wasted spend due to low-quality media. A large chunk of this wastage is driven by fraud. Bot fraud now accounts for 65% of all CTV-related fraud, with an estimated 4 million infected devices generating fake traffic every day.

For an industry that champions ROI and precision targeting, these findings underscore the importance of tightening the ecosystem.

From the consumer’s side, the landscape is also shifting. According to the DV survey, 41% of viewers now prefer ad-supported content over paid subscriptions, reflecting both subscription fatigue and growing comfort with ad-funded models.

Content format and context matter more than ever. 64% of viewers say the genre of content impacts how they perceive ads and brands, reinforcing the need for contextual alignment in ad placement. Long-form formats like TV shows and podcasts are perceived as stronger brand-building environments compared to short-form video.

This has led to greater experimentation with ad formats tailored for engagement—pause ads, dynamic overlays, mid-rolls, and click-to-WhatsApp integrations are becoming standard tools in a brand’s CTV toolkit.

Marketers seek measurement and accountability

Despite the opportunities, marketers remain cautious. 68% say transparency is essential to justify the high cost of CTV advertising, while 63% admit they struggle to determine whether their CTV buys are reaching actual viewers.

The discrepancy between spend and certainty is shaping how marketers evaluate vendors and platforms. The demand for verification and third-party measurement is growing louder.

“CTV is evolving quickly, but it’s vital that the industry builds in safeguards and common standards before these issues undermine trust,” said a marketer quoted in the report, echoing a sentiment that many advertisers share.

As the industry heads into 2025, DoubleVerify is doubling down on innovation. The company is expanding its suite of solutions to include fraud protection, performance metrics, and new attention measurement tools.

“Technology innovation plus industry collaboration” is how Zagorski frames the path forward. The implication is clear: brands, platforms, and verification providers must work together to ensure CTV remains a viable, scalable, and trustworthy channel.

While the streaming boom continues, the message is becoming harder to ignore—ad dollars alone won’t sustain the CTV ecosystem. It needs transparency, accountability, and smarter measurement to mature into the premium channel it promises to be.

Source:
Campaign India

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