[eMarketer] Advertisers are losing $1 billion on CTV ads that run while TVs are off
Approximately 17% of all ads delivered through connected TV (CTV) devices like dongles or gaming consoles are playing while televisions are off, costing marketers $1 billion per year in wasted ad spend, according to a report from GroupM and iSpot.
GroupM and iSpot said they found “virtually no incidence” of the issue when users were streaming from native smart TV apps.
Native smart TV apps make up around 50% of all CTV streaming, meaning approximately 8% to 10% of all CTV ads are broadcasting on a dead screen.
The study was conducted with 20 million Vizio smart TVs, and found streaming devices sometimes do not receive an “off” signal from the attached HDMI cable when a user shuts off a television.
eMarketer says that the findings are an unwelcome shakeup to an ad industry already in disarray and dealing with the looming era of uncertainty, a shaky digital ad landscape, and the fractured state of TV measurement.