Global programmatic ad spend is expected to grow to a staggering $147B in 2021.1 In the US alone, programmatic video spend is projected to be $36.6B. A large percentage of this growth is occurring on the largest screen in the home, the connected TV [CTV]. According to eMarketer’s latest projection, programmatic CTV ad spend is expected to grow 18% year-over-year in 2021 to roughly $6.73B2. Our Innovid IQ data reflects a similar trend, with a 206% year-over-year impression increase across programmatic CTV3.
There’s little doubt that the meteoric rise of connected TV has ushered in a new era of innovation in TV advertising. From both consumers and marketers, there is growing demand for engaging, personalized experiences, specifically designed to capitalize on digital audience targeting capabilities. Interactive CTV [iCTV] perfectly fills this need, allowing advertisers to build relevant and engaging TV ad experiences. Despite the increased demand for these interactive formats and features, iCTV ad spend growth has trailed behind that of standard CTV based on programmatic execution limitations.
Historically, advertisers have been required to transact with publishers directly vs. programmatically in order to utilize Innovid’s Interactive CTV formats and features. Due to the lack of ad tag standardization across CTV, Innovid’s proprietary software development kit (SDK) must be integrated directly with the device and/or publisher's app to support the interactive features and ensure ad experiences are consistent across all screens. This left advertisers in a no-win scenario: either lose out on the automation and ease that programmatic buying offers or miss out on the ROI boosting engagement that Interactive CTV provides. Until now.
As the owner of the SDK, Innovid knew we needed to help architect the solution for advertisers to transact on iCTV programmatically. To execute, Innovid took a two-pronged approach, working with both demand- and supply-side, partnering with seven of the leading demand-side platforms, three supply-side platforms, and over sixty premium CTV publishers.
DSPs: Adelphic, Amobee, DV360, RhythmOne, The Trade Desk, Xandr, and Verizon Media.
SSPs: Magnite, Verizon Media and TheViewPoint
CTV Publishers: AMC, Crackle, Newsy, TubiTV, FutureToday, and more.
Now advertisers can take advantage of the enhanced efficiency and targeting capabilities programmatic has to offer while leveraging the attention-grabbing interactive CTV features to drive their KPIs. Publishers and supply-side platforms also benefit, enabling them to increase revenue from their highest-grossing channel and format while improving yield/fill rates across premium iCTV inventory. All in all, Innovid’s Programmatic iCTV takes the industry one step closer to the “silver-bullet“ opportunity that CTV has to offer... the right message, to the right viewer, in the right place, at the right time, all in real-time.
Want to learn more about the benefits of Interactive CTV? Check out our most recent case studies here.
1Source: statista 2021
2Source: eMarketer, 2021
3Source: Innovid iQ 2021