CTV advertising is not delivering on advertisers' ROI expectations despite its potential advantages. High costs compared to traditional TV ads represent a significant barrier, with premiums for targeted strategies and do-not-air lists exacerbating the issues. Frequency management remains a challenge in the CTV space, complicating the effectiveness of campaigns. Industry experts emphasize the need for better solutions and strategies to enhance CTV's cost-effectiveness and overall performance for advertisers.
"It's a shame because on paper everything suggests that CTV should actually perform better. There's less ad clutter. You can't skip ads. You can be more targeted. There's so many positives to it. But I think price is probably one of the biggest barriers."
"Right off the bat, even if you're targeting people [two years old and older, the broadest and cheapest audience segment], you're paying more to start with [on a CPM basis]. Then you start to add on a premium for any way that you want to optimize your buy."
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