Connected TV Faces Major Challenges, Warns Expert Tal Melenboim
The rapid growth of connected TV (CTV) is transforming the advertising landscape, but significant challenges remain, according to industry expert Tal Melenboim. In a recent interview with Benzinga, Melenboim emphasized that issues such as measurement, identity, and fraud are preventing CTV from reaching its full potential.
Currently, streaming accounts for more than 44% of total television viewing in the United States, with YouTube commanding a 12% market share. This shift is attracting billions in advertising dollars to CTV, which is growing at double-digit rates and increasingly appealing to live sports audiences. Despite this acceleration, Melenboim identified fragmentation as the most pressing challenge facing the industry.
Fragmentation and Fraud Hinder Progress
“The biggest roadblock is fragmentation, in measurement, in identity, in how we track frequency across platforms,” Melenboim stated. He pointed out that fraud continues to be a significant issue, along with the inconsistency in creative formats and data signals. These structural hurdles impede advertisers’ ability to fully leverage the advantages of CTV advertising.
Melenboim suggested that the industry could mitigate these challenges through the adoption of shared identity systems and privacy-safe data clean rooms. He believes that implementing supply path optimization would foster trust between advertisers and platforms, ultimately enhancing the effectiveness of CTV campaigns.
As inventory scales, Melenboim anticipates a shift in how advertisers measure success. He indicated that cost-per-thousand (CPM) rates are expected to stabilize, leading buyers to prioritize proof of incremental reach and sales lift over traditional completion rates.
Adapting to Privacy Regulations
The landscape is also being reshaped by privacy regulations, such as California’s CPRA and scrutiny in the U.K. surrounding device fingerprinting. Melenboim noted that these laws compel platforms to rely more heavily on consent-based data. “The upside for CTV is that it’s a consent-heavy environment compared to the open web,” he explained. This allows for household-level planning and measurement in clean rooms while remaining compliant with privacy standards.
Melenboim expressed confidence that CTV will increasingly be planned alongside YouTube as an equal channel on the largest screen in the home. “In many ways, it’s already overtaking traditional TV. Viewership has shifted, and the ad dollars are following,” he added.
As the CTV market continues to evolve, addressing these challenges will be crucial for the industry to unlock its full advertising potential. The insights from experts like Tal Melenboim provide valuable guidance for navigating this dynamic landscape.
