As digital advertisers and publishers continually seek innovative ways to captivate audiences, the landscape of advertising has expanded beyond traditional mediums. Among the pioneering realms are Connected TV (CTV) and Over-The-Top (OTT) advertising, both of which are revolutionizing the way we consume content and engage with brands. In this blog, we delve into the intricacies of these platforms, uncovering their mechanics, potential ad fraud risks, and ultimately, which avenue might be the right choice for your next campaign.
While CTV advertising is escalating rapidly and poised to grow by 13.2% globally in 2023 to $25.9 billion, according to GroupM's mid-year forecast, OTT advertising has taken a new leap mainly after the COVID-19 pandemic when the viewership drastically increased. Since then, the growth has been unstoppable also credited to the quality original content rolled out by each of the platforms that provides a beneficial edge to advertisers
What are Connected TV and OTT?
Connected TV refers to smart TVs or devices that are connected to the internet, allowing users to access streaming services, apps, and digital content directly on their screens. OTT, on the other hand, pertains to the delivery of video content over the Internet, bypassing traditional cable or satellite subscriptions. The crucial distinction lies in the medium through which content is delivered – CTV focuses on the device, while OTT emphasizes the method.
How does OTT advertising work?
OTT advertising operates on the principle of delivering targeted content to viewers through internet-connected devices, circumventing the limitations of conventional television advertising. It offers granular audience targeting, ensuring your message reaches the right people. Advertisers can leverage user data, preferences, and behaviours to tailor their campaigns effectively. The ad formats in OTT can range from traditional commercials to interactive ad units, engaging viewers and prompting direct responses.
How Does Connected TV Advertising Work?
Connected TV advertising leverages the expansive reach of smart TVs and internet-connected devices to deliver ads directly to viewers during their streaming sessions. It merges the allure of television with the precision of digital advertising, enabling advertisers to tap into the vast potential of engaged viewers. Like OTT, CTV also provides various ad formats, including pre-roll, mid-roll, and interactive ads, ensuring seamless integration into the viewer's experience.
How huge is the risk of ad fraud on these platforms?
In the dynamic landscape of digital advertising, where innovation and opportunity converge, the shadow of ad fraud looms ominously. Both CTV and OTT advertising are not impervious to this peril. As digital advertisers and publishers traverse the intricate terrain of CTV and OTT, understanding the dimensions of ad fraud is paramount to protecting investments and maintaining the integrity of campaigns.
- Viewability fraud- The essence of effective advertising lies in visibility, but viewability fraud disrupts this equilibrium. Advertisements are strategically placed where they remain unseen, artificially inflating metrics while squandering ad budgets. It's a menace that distorts the true impact of campaigns, leaving advertisers grappling with the repercussions of skewed data.
- Impression fraud- A subtle yet insidious threat, impression fraud entails fraudsters fabricating ad impressions, thereby misleading advertisers into believing their ads have garnered more views than they actually have. This not only leads to erroneous performance metrics but also unjust payments for phantom views, severely denting budgets and potential returns.
- Click fraud- The allure of high click-through rates can be deceiving. Click fraud involves fake clicks on ads, manipulating click-through rate metrics to appear more enticing than reality. Advertisers are lured into a false sense of success, allocating resources to campaigns that may not be delivering genuine engagement.
- Device spoofing- In the intricate dance of targeting, device information is pivotal. Fraudsters exploit this vulnerability by manipulating device information to emulate valuable demographics, diverting targeting efforts toward fictitious profiles. The result? Misdirected campaigns that fail to reach intended audiences.
OTT or CTV? Which is better?
As the battle between Connected TV and OTT rages on, there's no one-size-fits-all answer. The choice depends on your advertising goals, target audience, and budget constraints. If you're aiming for precise targeting and interactivity, OTT might be your ticket. On the other hand, if you seek the immersive experience of television combined with the advantages of digital, CTV could be your ideal platform. However, remember that the potential for ad fraud exists in both realms, necessitating robust ad fraud management strategies to safeguard your investments and reputation.
To counter CTV ad fraud, partnering with tools like ClearTrust can provide multiple advantages ranging from seamless integration and real-time reporting to customized filters.
