A Quick Guide to CTV Ad Monetization

CTV Ad Monetization

Connected TV (CTV) is one of the fastest-growing and most financially lucrative industries in the world, with the vast majority of homes in the US and across the globe equipped with a smart streaming device to watch an on-demand video. 

This surge in video streaming has been led by household names such as Netflix, Amazon Prime and Disney+, with users able to view their extensive libraries via their smart TV, smartphone, tablet or a CTV device such as a Roku Stick or AppleTV.

But how do publishers implement Ad monetization to generate revenue?

What is an Ad Monetization Platform?

Ad Monetization Platforms for publishers offer a programmatic solution so they can generate revenue from their content without using the services of a third-party intermediary. Removing TPIs from the equation can sometimes result in a 30% increase in revenue, ensuring a quick return on investment. 

These platforms grant full control to publishers and allow them to easily manage their ad inventory, so only relevant and suitable ad content is allowed on their platform. Not only can media sellers tap into a wide network of prospective advertisers but Ad monetization can be fully automated by the platform, allowing publishers to manage their core business operations instead.

Real-time insights and analytics are also available, so amendments can be made to make sure your ad inventory is working to its full potential.

An Ad Monetization platform simplifies the entire process, resulting in increased revenue, higher levels of control, real-time optimizations and advanced tracking. 

Who Can Use Ad Monetization Platforms?

Ad monetization platforms can be used by content publishers for CTV devices, meaning ads can be placed before or during video playback, or on the interface itself in many different formats. 

This is the best option to generate income from your content if you do not wish to charge a monthly subscription fee.

How does Ad Monetization Work?

Hopeful advertisers place bids on a publisher’s available ad inventory, and the highest bid is selected by the platform. The Ad is then displayed on their chosen medium, providing their product matches the criteria set by the publisher. 

For example, a toy company may wish to advertise via a video interruption during a popular children’s TV show. They will insert their highest possible bid into their Ad Exchange and if successful, their ad will be shown, as the product would be relevant to the audience.

This ‘auction’ process is extremely quick and efficient and is largely managed by complex algorithms which can process information in milliseconds and handle a countless number of requests.

What is a Private Ad Exchange?

A Private Ad Exchange allows a publisher to manage their own personal, online marketplace for their ad inventory. Removing the need for any third parties and only dealing with preferred advertisers.

Once set up, this marketplace can be fully automated by the monetization platform, resulting in a functional and flawless system to sell Ad space. 

This differs from a traditional Ad network which requires a middleman who will take a cut of the profits. These networks also require additional liaising, the presence of a Supply-Side Platform and much less control over your inventory. As such, there is no clear benefit of sticking to a traditional Ad network and these platforms are quickly becoming outdated. 

Ad Monetization by Using an Ad Exchange Platform

  1. An Ad Exchange Platform grants you full control over your ad space, meaning only relevant ads are shown on your content. This also extends to the format and styling of the ad to limit the level of intrusiveness. 
  2. A Private Ad Exchange can result in a 30% increase in revenue when compared to using a traditional Ad network. 
  3. The platform creates a personal marketplace for your Ad inventory which can be fully automated, meaning the algorithm does all the work once your preferences have been determined. This frees up a significant amount of time that can be reinvested in building and marketing your product. 
  4. Publishers can explore a range of insights and analytics via the platform which enables them to make informed decisions and maximize revenue. This data can show which Ad types and formats are being well received and which aren’t, so optimizations can be made.

We hope this quick guide has been useful to you and has answered any questions you may have had about CTV Ad monetization.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.