OpenX Mitigates CTV Concerns with Its Video by OpenX

CTV, or connected TV, undoubtedly has benefits that linear TV could only ever dream of. With CTV, viewers will see brand messaging that is tailored based on their location, viewing history, or the Taylor Swift concert in their area that weekend. Brands can do this without relying on third-party cookies because CTV relies on first-party data (1P), which ultimately allows marketers to reduce budget waste and syndicate messaging to a specific audience at a specific time.

By one estimate, the CTV market is projected to reach nearly $947B by 2027, and according to a survey by AppsFlyer, almost all businesses surveyed see CTV advertising overtaking mobile, with a quarter of respondents predicting it will occur over the next three years. Moreover, CTV accounted for 6.1% of total ad spend last year, with Insider Intelligence predicting it will make up 7.3% of ad spend this year.

Another added benefit is the interaction and conversion rate brands see from secondary devices once a viewer has seen a CTV ad. “We found that people who watched a CTV ad and visited a site stayed there 49% longer than people driven to the site from paid social and 19% longer than those driven by paid search,” says Jon Zucker, senior product marketing manager at MNTN.

How could CTV possibly fail?

Perhaps it’s less about failing and more about consistency. Despite its many benefits over linear TV, CTV’s obstacles include everything from channel attribution to inconsistent and often exorbitant pricing. In fact, measurement and cost seem to be the two major pain points for advertisers. For instance, most data reflects the number of devices being used rather than the number of viewers using them.

“The measurement part is a challenge. Even trusting and knowing that your ads are going to show up where you want them to is a challenge, and that you’re not over-serving on one platform,” said Andy Rhode, head of media and social at Fallon ad agency.

Moreover, one agency executive said CPMs (cost per thousand impressions) could range from $40 to $80, depending on what is being advertised. We only have to look to Netflix for an example of high CPMs. Advertisers are growing frustrated with the platform after what they consider to be too slow growth in its ad subscription tier and high $55 CPM (down from an initial $65). This is still above the $50 CPM that Disney sought for Disney+, and the $65 CPM made Netflix the most expensive of the ad-supported streaming platforms.

Netflix is also falling short of viewership guarantees made to advertisers, returning money for ads that haven’t run yet. Unlike with linear TV ad buys, Netflix operates on “pay on delivery,” meaning advertisers only pay for the viewers they reach, with Netflix returning any unspent ad money at the end of each quarter. For many ad buyers, however, this is not enough to make up for their clients needing to readjust their ad budgets and expectations, and many hope to see Netflix’s CPM go down to somewhere in the $40-$50 range.

OpenX Alleviates CTV Frustrations

OpenX is uniquely positioned to address these concerns. OpenX connects marketers to 2,500+ CTV publishers, like Hallmark and WarnerMedia, and each month we see over 50 million CTV devices and 250 billion ad impressions. Moreover, OpenAudience allows you to integrate your 1P data and match it to our identity graph, which includes over 200 million people. This identity graph leads to increased matching and more precise targeting, making brands’ spending more effective.

Video by OpenX campaigns will import detailed summaries of critical data points, including cost-per-view, cost-per-sale, and user engagement numbers. Combining your premium content for premium publishers with our extensive data from our OpenAudience platform means we can regularly improve your reach and results throughout your campaign.

We aren't your typical SSP. We give you an advantage in the market with our unique buying power, high-quality content-creation support, first-rate data and analytics tools, and extensive network of partners. You can use Video by OpenX to run video ads across our premium inventory to reach 160 million monthly active users with a predictable spend budget.

By using Video by OpenX, you can easily avoid expensive ad placements. While most video incurs high costs, we only charge $1 for every thousand impressions (a $1 CPM). The kicker? We offer frictionless billing, no additional contracting, and no invoicing.

With Video by OpenX, you can produce premium content with optimal measurement at a fraction of the cost with a platform that provides a zero-carbon footprint verified with a CarbonNeutral certification.

Interested in launching a CTV campaign? Contact buyerdev@openx.com.