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November 04.2025
2 Minutes Read

Unlocking CTV's Potential: Best Practices for Performance-Driven Ads

Hand holding remote control, performance-driven CTV ads concept.

Understanding the Shift: CTV as a Performance Channel

The Interactive Advertising Bureau (IAB) has taken significant steps to elevate the status of connected TV (CTV) as a viable performance channel by establishing comprehensive guidelines for leveraging Conversion APIs (CAPI). This shift comes amid a growing recognition from marketers that CTV has the potential to deliver measurable performance on par with more established mediums such as search and social media. However, despite its promise, CTV faces substantial obstacles, including fragmentation and technical complexity, which could thwart its growth trajectory.

Measurable ROI: A Critical Need for CTV

One of the key findings from the IAB's latest research is the crucial need for clear, measurable ROI from CTV advertising. Nearly 66% of advertisers using CAPI have reported an enhanced return on ad spend, highlighting the importance of effective measurement solutions. In contrast, a significant 72% of publishers cited integration challenges and technical barriers as major impediments to adopting such systems. As advertisers increasingly pivot towards outcome-based buying, platforms that cannot demonstrate clear results risk being deprioritized in favor of those that can.

Common Challenges: Fragmentation and Privacy Concerns

The IAB's guidelines underscore the pervasive issues of fragmentation and limited identifiers in the CTV ecosystem. Many advertisers are hesitant to share data, fearing potential misuse, which adds further complexity to the landscape. This fragmentation can hinder advertisers' efforts to validate performance and secure reliable conversion tracking, stymieing the widespread adoption of CAPI capabilities.

Call to Action: Building Standardization and Trust

The path forward necessitates collective action from all stakeholders in the CTV ecosystem. Advertisers must align their internal strategies and communicate their needs to publishers and technology partners. Meanwhile, publishers must strive for improved transparency and conversion tracking to facilitate better data sharing practices. With the IAB's recommendations, stakeholders can work together to create a standardized framework that both enhances measurement capabilities and builds trust in data sharing.

Future Predictions and Industry Outlook for CTV

The outlook for CTV spending remains optimistic, with projections indicating that spending could exceed $72 billion by 2025. An estimated 58% of all video spending is expected to shift towards digital channels. However, for CTV to realize its full potential, industry participants must address the technical and trust gaps identified in the IAB's reports. An industry-wide commitment to standardizing measurement practices could pave the way for CTV to emerge as a competitive performance channel.

Recognizing the evolving landscape, small businesses should be attentive to these developments in CTV advertising. By utilizing the insights from the IAB’s guidelines, businesses can craft more effective strategies for leveraging CTV, ensuring that they capitalize on the growing opportunities within this dynamic medium.

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