NETINT Technologies about 📺 Why Low Fill Rates in CTV Ads Matter More Than You Think
on channel: NETINT Technologies Inc.
If you've ever watched TV and seen that dreaded "We’ll be right back" screen instead of an ad, you've experienced the fill rate problem firsthand. For broadcasters, every second of unfilled ad space is lost revenue. And for viewers, it’s a missed opportunity to see ads that might actually interest them. In connected TV (CTV), this is a huge issue. Jonathan Moffie, CEO of Streamr AI, dives deep into the challenge of low fill rates and explains how addressing this issue can not only increase revenue but also improve the overall viewing experience. So, what’s the solution? It lies in smarter targeting and filling those ad slots with relevant content.
📈 Understanding Fill Rates and CPMs
To make sense of fill rates, think of each TV show as having a limited number of ad breaks. In a perfect world, all those ad slots would be sold and filled with ads relevant to the viewers. But what happens when the ad space isn’t sold? You get "We’ll be right back" slates instead of ads. That’s what’s known as a low fill rate. It's a big issue because even though more viewers are watching CTV than ever before, platforms are still struggling to fill every ad break with paid content. The key to profitability in CTV is not just filling those spots but doing so at competitive rates, measured in CPM (cost per thousand impressions). As Jonathan points out, traditional TV still generates huge revenue because advertisers are willing to pay high CPMs. But for new fast services, especially those using programmatic auctions, CPMs can be much lower, leading to profitability challenges.
🌐 Programmatic Advertising and the Role of Hyper-Targeting
Programmatic advertising, the stock market of ad buying, allows businesses to purchase ad slots through real-time auctions. This system works well but can lead to issues like the same ad being shown repeatedly to viewers—who else is tired of seeing the same car ad over and over? The goal for platforms is to bring more diversity to their ad inventory and, more importantly, make the ads hyper-relevant to the viewer. With advanced geolocation and targeting technology, it's now possible to serve ads based on where the viewer lives, down to the ZIP code level. Imagine watching your favorite show and seeing an ad for a local restaurant just a mile away. That's the promise of hyper-targeted, personalized advertising. It not only benefits advertisers but also gives viewers content that’s actually useful.
If you’re interested in optimizing your video ad campaigns with advanced video processing technology, schedule a consultation with the NETINT team at https://netint.biz/meet-now. Or, to create your next video ad campaign with ease, visit https://streamr.ai/ today!
#CTV #VideoAdvertising #ProgrammaticAds #DigitalMarketing #StreamingServices #AdTech #GenerativeAI #FillRates #CPM #VideoProcessing
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