Omnicom Media Group Issues Call-to-Action for Industry Adoption of CTV Standards

Rhea-AI Summary

Omnicom Media Group (OMG) has launched the Connected TV Signal Standardization Initiative to ensure transparency and safety in CTV investments. The US CTV ad spend surged 40.6% in 2020, expected to reach $13.41 billion in 2021. However, concerns about a lack of transparency and rising ad fraud are hindering further growth. The initiative proposes standardized protocols around inventory, identity, and fraud to enhance media buying. Industry support includes stakeholders like IAB Tech Lab and AMC Network, aiming for unified standards to bolster advertiser confidence in CTV.

Positive

• US CTV ad spend increased by 40.6% in 2020, estimated to reach $13.41 billion in 2021.
• The Connected TV Signal Standardization Initiative aims to address transparency and safety concerns, potentially increasing CTV investment.

Negative

• Concerns about safety and transparency may deter clients from increasing CTV investments.
• Issues such as ad fraud and lack of audience understanding need resolution for improved ROI in CTV.

NEW YORK, Nov. 2, 2021 /PRNewswire/ -- Omnicom Media Group (OMG), the media services division of Omnicom Group Inc. (NYSE: OMC), has launched The Connected TV Signal Standardization Initiative, calling for industry-wide support of a set of investment practices and protocols designed to bring the transparency, quality consumer experiences and safety of linear TV to Connected TV(CTV) environments.

Over the past year the combination of increased accessibility to internet-enabled TVs and  pandemic-driven shifts in media consumption helped drive record growth in CTV investments. In the US, 2020 CTV ad spend increased 40.6% year-over-year to more than $9 billion, making CTV the fastest growing sector of the US digital ad market. That growth rate is expected to further accelerate in 2021, closing in on  50% with a projected spend of $13.41 billion.

However, this exponential growth has also underscored fundamental flaws and gaps in the CTV investment infrastructure, including a lack of linear TV-level transparency; an inability to understand audiences at the household level across partners; and a measurability gap that translates to an open invitation to cyber criminals who are generating millions in ad fraud.  While some providers have offered siloed responses, scalable solutions have proven elusive.

"The category is growing, but so are the concerns about safety and transparency that make clients resistant to shifting spend into CTV," says OMG North America Chief Activation Officer Megan Pagliuca. "Unless we as an industry – agencies and marketers, platforms, publishers and providers - adopt shared standards to mitigate the barriers to investment, these issues will increasingly undermine CTV ROI, and erode the marketer confidence that is fundamental to long-term category growth." 

The Connected TV Signals Standardization Initiative addresses these endemic issues with recommended protocols and practices focusing on three signals that inform and impact media buying - inventory, identity, and fraud. 

Inventory: Standardization of the nutrition label for CTV inventory

• Integration of show and placement level details including show, channel, genre, and pod placement
• Collaboration with third party verification companies to validate the ad content being sold
• Standardization of these metrics through governing body frameworks, such as the updated IAB's Content Taxonomy 3.0

Identity: Respect individual privacy and protect publisher data

• Transition to household IDs, standardized through an industry governing body framework
• Collaboration between buyers and sellers in data clean rooms to connect 1st party audiences
• Phase out of non-privacy safe identity signals, such as IP addresses

Fraud: Illuminating the supply chain

• Improved supply chain transparency and SSAI signatures through implementations of ads.cert 2.0
• Integrate Connected TV Open Measurement SDK to allow better measurement of the CTV landscape
• Collaboration between devices, platforms, and services on increasing fraud telemetry data such as Anti-Fraud SDKs and device attestation protocols

Omnicom has pointed to the influx of TV dollars shifting from linear to digital as a core reason behind this investment initiative. "The reality is that savvy clients have been shifting their TV budgets into a more holistic video strategy for years," says OMG North America Chief Investment Officer Geoffrey Calabrese. "The beauty of Connected TV is that it's a way for marketers to have a true like-for-like channel to enhance their linear TV reach; but they're going to put that investment primarily with partners that can provide them with buying signals that match back to what they're already seeing in linear.  It's just common sense."

The Connected TV Signal Standardization Initiative has already gained support from a cross- section of industry stakeholders, including the IAB Tech Lab, AMC Network, independent sell-side ad platform (SSP) Magnite, and bot detection and human verification company HUMAN (formerly WhiteOps).

"The IAB wholeheartedly endorses OMG's call to action and will be partnering with them to urge adoption of the Connected TV Signal Standardization Initiative," says IAB Tech Lab CEO Anthony Katsur. "At the IAB Tech Lab, we're focused on building standardized frameworks that facilitate transparent transactions between buyers and sellers. We believe that the CTV environment's unique elements require a focused initiative that balance the demand side signal needs with sell side capabilities."

"Fully realizing the potential of CTV, a category that is rapidly expanding, requires transparency and a commitment to quality content, so advertisers can understand the value of what they are buying regardless of the transaction type," says Evan Adlman, Senior Vice President of Advanced Advertising and Digital Ad Sales at AMC Network. "We believe OMG's CTV Signal Standardization Initiative will increase confidence in an environment that has lacked some of the core infrastructure other digital channels enjoy and help lead the charge through investment in CTV inventory across the industry."

Summing up the call-to-action, Pagliuca says, "If we as an industry can ensure transparency, safety, and the quality of consumer experiences in CTV environments, we will provide advertisers with a viable path to increasing their CTV investment - everybody wins. " 

Additional background on the Connected TV Signal Standardization Initiative can be found here.

About Omnicom Media Group
Omnicom Media Group (OMG) is the media services division of Omnicom Group Inc. (NYSE: OMC), a leading global marketing and corporate communications company, providing services to more than 5,000 clients in more than 70 countries. Omnicom Media Group includes full- service media agencies Hearts & Science, OMD and PHD; performance marketing agencies Resolution and Jump 450; Optimum Sports Media and Marketing; and the Annalect data and analytics division that developed and manages the Omni marketing operating system underpinning all Omnicom agencies.

 

View original content:https://www.prnewswire.com/news-releases/omnicom-media-group-issues-call-to-action-for-industry-adoption-of-ctv-standards-301414079.html

SOURCE OMD

FAQ

What is the Connected TV Signal Standardization Initiative launched by Omnicom Media Group?

The initiative aims to standardize practices for transparency, quality, and safety in CTV investments.

How much did US CTV ad spend grow in 2020?

US CTV ad spend grew by 40.6% in 2020, exceeding $9 billion.

What are the main issues addressed by the Connected TV Signal Standardization Initiative?

The initiative targets transparency, audience understanding, and ad fraud in the CTV landscape.

What financial projections were made for CTV ad spending in 2021?

CTV ad spending in the US is projected to reach $13.41 billion in 2021.

Which organizations support the Connected TV Signal Standardization Initiative?

Support comes from IAB Tech Lab, AMC Network, and other industry stakeholders.