The best to opt for targeted CTV auctions instead of open ones to enhance precision targeting and reduce CTV fraudulent activity for better advertising outcomes.
Introduction to CTV
Over the past few years, Connected TV (CTV) has become a popular platform for advertisers to reach their target audience. With more people switching from traditional cable TV to streaming services, CTV has provided a new avenue for marketers to connect with consumers. However, with this new platform comes new challenges, particularly when it comes to advertising fraud.
Connected TV (CTV) has emerged as a popular medium for advertisers to reach their target audience. With its large screen and immersive experience, CTV has become the preferred choice for viewers to consume digital content. However, as CTV advertising grows in popularity, so does the threat of fraud. To ensure optimal targeting and avoid fraud, advertisers must avoid CTV open auctions.
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What is a CTV open auction?
CTV open auctions are real-time bidding (RTB) auctions that allow advertisers to bid on ad inventory from various publishers. In an open auction, multiple buyers bid on the same impression, and the highest bidder wins. Advertisers use open auctions to buy ad inventory programmatically and reach their target audience.
Why you should avoid CTV open auctions?
CTV open auctions have several drawbacks that can negatively impact the performance of your ad campaign. Here are a few reasons why you should avoid CTV open auctions:
- Lack of targeting: Open auctions do not offer granular targeting options, which means that advertisers have limited control over who sees their ads. This can result in wasted ad spending as your ad is shown to people who are not interested in your product or service.
- Limited transparency: Open auctions lack transparency, making it difficult for advertisers to verify the quality of the ad inventory they are buying. This can lead to fraud, as advertisers may unknowingly buy ad inventory from fraudulent sources.
- Higher risk of fraud: CTV open auctions are vulnerable to fraud, as bad actors can manipulate the bidding process to win auctions and serve ads to unsuspecting viewers. This can result in wasted ad spending and damage to your brand reputation.
- Lower ad viewability: Open auctions can result in lower ad viewability as your ad may be shown to viewers who are not actively engaged with the content. This can reduce the effectiveness of your ad campaign and result in lower ROI.
What to do instead?
- To ensure optimal targeting and avoid fraud, advertisers should consider other buying methods such as private marketplaces (PMPs) and programmatic guaranteed deals. These methods offer greater transparency, targeting options, and control over ad inventory.
- PMPs are invite-only auctions that allow advertisers to buy ad inventory from premium publishers. PMPs offer greater transparency and control over ad inventory, making it easier for advertisers to target their audience and ensure the quality of the ad inventory they are buying.
- Programmatic guaranteed deals are pre-negotiated deals between advertisers and publishers that guarantee ad inventory at a fixed price. This method offers the highest level of transparency and control over ad inventory, making it ideal for advertisers who want to ensure the quality of their ad inventory.
Many experts recommend using private marketplaces (PMPs) or programmatic guaranteed (PG) deals instead of open auctions. These options offer more transparency and control over where your ads are being placed.
With PMPs, advertisers work directly with publishers to buy ad space. This allows for more control over ad placement and ensures that your ads are being seen by real people. In addition, PMPs typically offer more transparency in terms of pricing and performance metrics.
PG deals are another option that can be used to ensure that your ads are being seen by real people. With PG deals, advertisers agree to buy a set number of impressions at a fixed price. This eliminates the need for real-time bidding and allows for more control over where your ads are being placed.
VentiveIQ’s role
VentiveIQ offers assistance in optimizing advertising campaigns for connected TV by enabling companies to identify the most suitable advertising opportunities for this medium and allowing them to capitalize on these opportunities with just a single click using our platform.
Conclusion
CTV open auctions may seem like a cost-effective way to reach your target audience, but they come with several drawbacks that can negatively impact your ad campaign. While open auctions may seem like a good way to reach a larger audience and get the best price for your ad, they also open the door for fraudsters to bid on ad space and generate fake impressions. In addition, taking steps to protect yourself against fraud can go a long way to ensuring that your CTV advertising campaigns are successful.
