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Why biddable CTV is the future and how publishers and media buyers alike benefit

A red-toned GIF of a TV screen with shifting static in pink, yellow, and red, representing the evolving landscape of biddable CTV and its dynamic, data-driven ad opportunities.

Tyler Romasco, svp of global publisher development, OpenX

It’s no secret that CTV is experiencing explosive growth. By 2026, nine streaming services are projected to generate over $1 billion in ad revenue, up from just two in 2020. At that time, CTV will also account for one-fifth of the daily media consumption of U.S. adults.

The most important driver behind this meteoric rise in revenue is biddable CTV, which encompasses non-guaranteed 1-to-1 PMPs, multi-publisher PMPs, curated deals and open market inventory that combines the real-time optimization of digital with the premium, brand-safe experience of traditional TV. 

Biddable is the future of TV, and unlocking this future means planning differently. Upfront strategies need to be separated from biddable and scatter methods, so buyers have the right tactics for success and partners can tackle the challenges of trust, transparency and unintentional or non-TV inventory head-on.

As consumer behaviors and cultural conversations rapidly shift, marketers need to make more dynamic decisions to remain relevant. The industry can deliver on these promises by ensuring biddable CTV is transparent, TV-quality and brand-safe.

Biddable CTV unlocks greater monetization and agility

The shift from linear to biddable CTV (or scatter) reshapes media buying, making flexibility, efficiency and real-time optimization central to premium, glass-on-wall inventory. Unlike traditional upfronts, where inventory is locked in months in advance, biddable media enables advertisers to purchase closer to campaign activation. This is not to say that upfronts do not have their place, as they remain an important part of a holistic strategy. That said, agility is increasingly crucial, allowing brands to keep pace with evolving media landscapes, social movements and real-time market dynamics to optimize performance mid-flight and allocate budgets more effectively.

Biddable CTV unlocks greater monetization potential for publishers by maximizing fill rates and revenue. By making more inventory available on a biddable basis, publishers can capture incremental demand, reduce waste and increase yield — a critical advantage considering the high cost of producing premium content. By maximizing monetization opportunities, publishers sustain the investment required to create high-quality programming for their audiences while maintaining premium pricing for high-value placements.

As a result, biddable CTV is becoming an increasingly attractive option for buyers and publishers. But that wasn’t always the case: Before new technology innovations, both sides lacked the confidence necessary to invest in and embrace biddable solutions.

As CTV grows, biddable’s opportunities expand, offering more control and optimization

Before new solutions emerged in late 2023, brands and agencies largely avoided biddable inventory to bypass paying CTV CPMs without full transparency into what they were actually buying. The misclassification of non-TV content (such as fireplace apps, UGC, OTT and mobile) as CTV and an overabundance of resellers not only devalued publishers’ premium inventory but also made it harder for buyers to trust the value of the inventory they were running against.

By eliminating all resellers and non-TV content from the CTV inventory pool, these new solutions, such as TV by OpenX, ensure buyers have more working media and reduce invalid traffic. The solutions’ sustained success — helping publishers achieve a 22% increase in monetized impressions while buyers’ CPMs remained relatively flat — proves that advertisers can drive performance and reach while giving publishers greater control over inventory monetization.

“The work OpenX has done in biddable CTV is unlocking the best of both worlds — combining premium TV inventory with the flexibility and precision of digital,” said Rose McGovern, head of programmatic and digital ad sales at DirecTV. “As advertisers become more outcomes-driven, and leverage data signals and identifiers like Universal IDs and content metadata, we’re moving beyond traditional demographic segments toward data-driven curation that benefits scaled, premium publishers like DirecTV.”

Since creating the space and safety for the increased adoption of biddable CTV, the sector has seen remarkable growth. Last year, CTV became the fastest-growing major ad channel in the U.S., expanding by 19% and reaching $28.8 billion in ad spend. Consequently, programmatic CTV has become the overwhelming preference for advertisers, with three-quarters of CTV buys now done programmatically, according to findings from the 2024 IAB Digital Video Ad Spend & Strategy Report. For many leading brands, transacting programmatically is no longer optional — it’s an essential part of their TV media strategy.

Biddable CTV empowers independent agencies, too

Biddable CTV is particularly advantageous for independent agencies, opening doors for up-and-coming, high-quality brands previously locked out of TV advertising. This approach allows independent agencies to drive brand awareness at scale for their clients without the constraints of traditional upfront agreements. By leveraging biddable marketplaces, independent agencies can access premium inventory with greater flexibility, enabling them to optimize campaigns in real time and achieve performance goals more effectively. 

As a result, brands that once lacked the budgets or access required for TV can now compete on a much larger stage. Skyler McGill, head of programmatic and video at Wpromote agrees: “CTV can be a game changer for engaging certain audiences. For some advertisers, locking into big upfront deals can feel like a heavy commitment that limits flexibility when cultural moments pop up. Solutions that offer control, transparency, and flexibility are key to building agile strategies. They empower us to adapt on the fly and connect advertisers with the right audiences, unlocking the true promise of programmatic CTV.”

The ascent of biddable CTV signifies a paradigm shift in advertising, offering buyers dynamic optimization capabilities and enhanced monetization opportunities for publishers. 

As the industry continues evolving, innovative solutions that are transparent and mutually beneficial will play a crucial role in fostering trust and efficiency, paving the way for a more flexible and responsive advertising ecosystem. Independent agencies, in particular, stand to benefit from this model, as it empowers them to compete and succeed in the rapidly expanding CTV arena.

Sponsored by OpenX

https://digiday.com/?p=570920

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