GANDHINAGAR: In what can be a promising sign for the digital advertising industry, the Interactive Advertising Bureau (IAB) has identified a dynamic new frontier – the intersection of Connected TV (CTV) and podcasting. This holds immense potential for advertisers seeking innovative ways to engage target audiences, according to Cintia Gabilan, the newly appointed Vice President of the IAB’s Media Center.
Flourishing Platforms, ripe for collaboration
Gabilan, spoke at the IAB’s NewFronts event, and highlighted the phenomenal growth of both CTV and podcasting, terming them the “fastest-growing consumer media” in recent times. As consumption and reach for these platforms continue to expand, collaboration presents a wealth of opportunities, especially when considering the integration of Artificial Intelligence (AI), media optimization tools, and addressable advertising technologies.
CTV on the Rise
Projecting a bullish outlook for the CTV sector, Gabilan forecasts the industry to witness a significant jump from $20 billion last year to an estimated $23 billion in 2024. This growth is attributed to the surging popularity of streaming services and the increasing number of viewers opting for CTV platforms.
CTV’s Targeting Advantage
The logged-in nature of CTV allows for precise audience segmentation. There’s excitement around interactive features like shoppable ads, which can engage consumers more directly. The fusion of CTV and podcasting could leverage AI, media optimization, and addressability to create a more personalized experience for viewers and listeners.
Podcasting’s Massive Reach and D&I Focus
Gabilan acknowledged the emergence of podcasts as a “mass reach medium,” highlighting its captivating nature. She emphasized the IAB’s commitment to promoting Diversity and Inclusion (D&I) within the podcasting industry. Additionally, she underscored the need for enhanced measurement capabilities and privacy-safe advertising practices to ensure long-term success.
The Challenges
Despite the optimistic outlook, Gabilan cautioned against the challenges accompanying rapid growth. Audience fragmentation across various platforms, she noted, is leading to complexities in effectively targeting and buying advertising space.
She pinpointed the lack of standardized measurement practices across partners and the absence of uniform attribution models as obstacles hindering the medium’s true potential. She highlighted the importance of addressing privacy regulations like GDPR and CCPA, as well as potential new legislation. Combating ad fraud to ensure brand safety also emerged as a key focus area for her.
Despite the potential, there are challenges such as audience fragmentation, which complicates targeting and buying. Standardization of measurement across platforms and addressing privacy regulations are also areas that need attention.
Audience fragmentation is a significant challenge in the intersection of Connected TV (CTV) and podcasting due to several factors:
Diverse Platforms and Devices:
The proliferation of apps, devices, and platforms means that audiences are spread across a multitude of channels1. This makes it difficult for marketers to reach and measure their audiences in a unified way, as they must navigate a complex landscape of different CTV services and podcast platforms.
Competition and Pricing
While fragmentation can lead to competition among platforms, which may result in lower prices for advertisers, it also complicates the process of scaling campaigns. Marketers must consider the cost-effectiveness of reaching fragmented audiences and the potential need for increased spending to achieve desired reach.
Measurement and Attribution:
A lack of standardization in measurement across the fragmented CTV and podcasting ecosystem makes it challenging to deliver data-driven campaigns that maximize impact. Advertisers find it difficult to compare the performance of their campaigns and track users across their viewing or listening journey.
Innovation and Brand Safety:
Although competition drives innovation, it also requires advertisers to continually adapt to new technologies and solutions. Additionally, the fragmented landscape can limit visibility into brand safety, making it harder to ensure that ads appear in suitable environments.