AdTech’s Role in CTV & OTT

In the television industry, advertising has always had a big part to play. CTV and OTT are no different. To overcome the particular difficulties of promoting on digital platforms, the advertising business has nevertheless had to adapt. The absence of a standardized platform is among the most notable distinctions between conventional television and CTV/OTT. For advertisers, it is challenging to design and manage campaigns because there are hundreds of distinct CTV and OTT platforms, each with unique advertising features.

This is where AdTech comes in. AdTech, or advertising technology, refers to the tools and platforms that enable advertisers to create, manage, and optimize their advertising campaigns. AdTech has become an integral part of the advertising industry, with digital ad spending projected to reach over $455 billion by 2022, according to eMarketer. AdTech includes a wide range of solutions, including programmatic advertising, data management platforms, demand-side platforms, and ad servers. AdTech has become increasingly important in CTV and OTT advertising as it provides advertisers with the tools they need to navigate the fragmented ecosystem and reach their target audience effectively.

The capacity to target consumers more precisely is one of the most important benefits of AdTech in CTV and OTT advertising. CTV and OTT advertising can use first-party data to build highly focused campaigns, in contrast to traditional television advertising, which frequently uses demographic data to target consumers. Advertising campaigns will be more successful if advertisers employ AdTech solutions to target certain audiences based on their viewing preferences, search histories, and other online behaviors.

Accurately measuring campaign performance in CTV and OTT advertising is another advantage of AdTech. Advertisers may track important data like impressions, clicks, and conversions with AdTech solutions, enabling them to optimize campaigns in real-time. CTV and OTT advertising are more appealing to advertisers who want to clearly show a ROI on their advertising spend because traditional television advertising cannot be measured at this level.

Dynamic ad insertion is a feature enabled by AdTech that allows advertisers to serve personalized ads in real-time, replacing traditional TV ads. This feature allows advertisers to target audiences more effectively and deliver ads that are relevant to viewers, increasing the likelihood of engagement and conversion.

AdTech platforms in OTT and CTV advertising are responsible for:

·   Ad serving: In the OTT and CTV settings, there are several techniques to serve advertising, such as client-side ad insertion (CSAI) and server-side ad insertion. (SSAI).

·  Media buying: The most popular media-buying strategies are direct and private marketplace since OTT and CTV inventory is more expensive than other types ( display). (PMP).

·   Data and measurement: It is more difficult to gather and use data for OTT and CTV than it is for other channels, including web browsers. Because some viewers may see an advertisement on CTV but then complete the conversion (like making a purchase) on a smartphone, measuring the effectiveness of commercials is also more difficult.

As the popularity of CTV and OTT continues to grow, AdTech will play an increasingly important role in the advertising ecosystem. We can expect to see continued innovation in AdTech tools and platforms as advertisers demand more sophisticated targeting capabilities and more accurate measurement of campaign performance.