The advertising industry is an $830 billion dollar juggernaut that is constantly in flux, as new technologies and platforms emerge to capture consumers’ attention.
Television has been the traditional kind of advertising for many years, but with the advent of cord-cutting and streaming services, that is starting to change.
The CTV revolution
CTV (connected TV) is one of the newer advertising platforms that has begun to gain traction in recent years. CTV refers to any TV that is connected to the internet, whether it’s through a set-top box, game console, or built-in smart TV functionality
Data indicates that there are now over 500 million CTV devices in US households, with 71% of US homes having at least one CTV device (up from 58% in 2020). Based on these stats alone, it’s easy to see why advertisers and marketers are starting to pay more attention to CTV.
On top of this, since CTV platforms know what users are watching, they can serve up ads that are more relevant to the viewer, driving higher conversion rates and opening up a whole new world of data-driven targeting options for marketers.
The problem with CTV advertising
Despite the undeniable penetration that CTV offers and the potential benefits for advertisers, there are still some major issues that need to be addressed, with one of the biggest problems being viewability.
Viewability is a metric that measures whether a viewer actually saw an ad. In order for an ad to be considered viewable, at least 50% of the ad must be in view for two seconds or more. However, CTV advertisers are finding that around 17% of CTV adverts are being played while the TV is off, costing marketers more than $1 billion in wasted spend annually.
Secondly, viewers are not accustomed to being bombarded with ads on CTV devices. As a result, many are likely to be unhappy with a sudden transition to ad-heavy content and are likely to resort to ad blockers to avoid them (or simply unsubscribe from CTV services altogether).
Of course, this disruption to the viewer experience is a major concern for CTV platforms as it means that users are less likely to continue using their services, creating a conflict of interest between the provider and the advertiser.
Fortunately, an innovative new start-up called VFR.ai is set to change the CTV landscape by solving these viewability and disruption issues by providing a win-win-win solution for CTV platforms, advertisers, and viewers.
How VFR.ai is changing the CTV landscape
VFR.ai has developed a new way to monetize CTV content, in which they create and publish native and non-disruptive ads.
VFR boasts an ad completion rate of 94%, which rivals even the best-performing ad placements on traditional linear TV.
VFR works with both publishers and brands, bringing contextual custom ads into content. They choose only the right brands and advertisers for the content, and that means the audience enjoys premium ad content that’s targeted at them, making the ads a natural part of the experience. This not only increases the likelihood of engagement but also provides a valuable viewing experience for users, which is something that CTV platforms are always striving to provide.
Andre Migalovich, CIO of VFR, says, “With our solution, we are trying to create the perfect match between the publisher and the advertiser. On one hand, we are aiming for a solution that will not disrupt the viewer experience, and, on the other hand, we are aiming for a solution that will provide the best ad visibility.”
Given the company’s experience and behind the scene knowledge of how CTV platforms operate, VFR.ai is uniquely positioned to provide an end-to-end solution for CTV advertisers. One of the ways they do this is by creating high-quality content for their clients using their in-house team of creatives.
This is a huge benefit for advertisers, since it means that they do not have to go through the hassle and expense of creating their own content for ads, which can be a time-consuming and costly process. In turn, this only leads to increased efficiency and ROI for VFR.ai’s clients, which is yet another reason why the company is set to disrupt the CTV advertising market.
Final thoughts
With Netflix introducing a new ad-supported tier to their services within the next month, it is clear that the CTV landscape is changing.
As more and more people continue to cut the cord and move away from traditional linear TV, it is likely that VFR.ai will play a pivotal role in the future of CTV advertising—one that maintains the integrity of the user experience while providing ample opportunities for advertisers to reach their target audiences.
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