Gracenote Study: CTV Advertising Held Back by Metadata Chaos
A recent study by Gracenote has shed light on the challenges and trends in connected television (CTV) advertising. The research highlights a strategic misalignment between campaign objectives and execution tactics, with a lack of standardization in content metadata posing a significant hurdle in international ad campaigns.
The survey found that 70% of respondents struggled with the lack of standardization and unification in content metadata when developing CTV campaigns and assessing results. Despite this, only 45.2% reported being very familiar with contextual targeting, which could help alleviate these issues. Brand awareness was identified as the primary objective for 30% of respondents, followed by revenue growth at 28% and customer acquisition at 22%.
However, media professionals continue to rely on narrow audience-based targeting methods, with demographic targeting topping the list at 29.5%, followed by interest-based targeting at 21% and geographic targeting at 19%. This approach, better suited for performance marketing, seems at odds with the prioritized brand awareness objective. Organizations like the Interactive Advertising Bureau (IAB) and its Tech Lab are working to standardize and simplify metadata for CTV advertising, but concrete product developments or new partnerships were not detailed in the provided search results.
The effectiveness of CTV advertising was mixed, with 32% of respondents rating it 'not very effective'. Only 27.8% considered it 'extremely effective', while 40.5% found it 'very effective'. Despite this, 46% of respondents reported moving 26% or more of their paid media budgets to CTV over the past three years, and 27% currently allocate 40% or more of their total budgets to CTV.
The IAB projects U.S. CTV ad spending to total $26.6 billion in 2025, reflecting a 12% increase from 2024. As CTV advertising continues to grow, addressing the challenges related to metadata standardization and aligning targeting methods with campaign objectives will be crucial for maximizing its effectiveness.
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