The growth of connected TV (CTV) ad buying and selling has been unprecedented. The surge in CTV advertising dollars is moving at the speed of light. Data from eMarketer estimated that as much as 33% of households in the US would no longer use pay TV connection within three years. As such, CTV ad buying has become highly competitive. For this exact reason, many are raising valid concerns about fraud, particularly when it comes to CTV impressions.
Open Marketplace vs. Private Marketplace
If you look at it categorically, private marketplace versus open exchange belongs to two different categories. Both of them can be available programmatically since programmatic means automated media buying. When buyers enter into a programmatic media buying process while accessing an inventory, they would typically see what they can buy. In this transaction, a buyer can undergo real-time bidding, which can be subdivided into a private marketplace.
When it comes to open exchange, publishers would control the content and establish pricing floors. Sometimes, this control can result in fraud, which is why most CTV ad buyers would prefer private marketplace deals over the open marketplace. However, this doesn’t mean that there’s no place for open marketplace deals. It still offers tons of benefits.
Benefits of Open Ad Exchange
1. Improved Brand Safety
Open ad exchange deals can increase the checks and balances among publishers. Through the open marketplace, publishers can implement a server-side ad insertion (SSAI) in which the impression pixel comes from the server-side. When applied, this can cause a seamless streaming experience for users.
Engaging in an open marketplace deal can ensure that buyers would have access to high-quality and brand-safe content. Since it’s programmatic in nature, it would be easier for ad buyers and sellers to stay agile in a rapidly changing marketplace.
Campaigns can be halted with no delay and even have a new one running within hours while ensuring that the right messaging allows them to connect to their audiences.
2. Better CTV Inventory
An open ad exchange presents an opportunity for CTV ad buyers and sellers to use CTV identifiers, which help them scale their audience, and this is because they are no longer within the same ecosystem like that of display advertising. This ecosystem allows better inventory liquidity and continuous supply in comparison to permitting buyers to book and lock deals months in advance.
3. Enhanced Audience Scaling
No matter how great a marketplace’s inventory is, it would all be useless if it cannot provide advertisers the opportunity to send their message to the right people. As discussed, open ad exchange can help audience scaling. But more than that, it allows publishers to explore growth opportunities by taking in marketplace signals through data.
Sellers can find value in using open ad exchange platforms by ensuring they are working with demand-side platforms (DSPs) that prioritize the safety and security of their inventory. For buyers, looking into the value of inventory with contextual insights will help them ensure they only use high-quality streaming supplies to provide to their target audience.
For the CTV ecosystem to reach full maturity, investing in an open marketplace should be a priority. AlgoriX ensures both our publishers and demand partners are safe from fraud by using our proprietary technology to monitor data in real time and partnering with industry-leading measurement solutions. Learn how AlgoriX can plan your CTV advertising for you. Connect with our sales experts now.
