For years, the dominant narrative around IP addresses in advertising was that they should not be used for targeting or tracking due to privacy concerns. However, this stance has softened significantly. Google\u2019s policy shift, coupled with Digital Envoy\u2019s technology, allows for more precise and privacy-compliant measurement and attribution. Progressive companies have been leveraging IP-based targeting for a while now, but this dramatically increases the potential for the industry. The biggest challenge now isn\u2019t privacy but preventing CTV from being controlled by the tech giants \u2014Google, Meta, and Amazon. This is a future that few industry players truly want.<\/p>\n Learning from the giants<\/strong><\/p>\n CTV publishers, buyers, and agencies must take a leaf out of the tech giants\u2019 playbook when it comes to scaling the channel. These dominant players are rapidly gaining market share in CTV, leveraging their extensive data ecosystems and ad tech dominance to capture budgets that might otherwise go to independent players. They succeed because they:<\/p>\n Currently, while many brands use CTV for upper-funnel branding, performance and mid-funnel budgets remain dominated by the big platforms. To change this, the CTV ecosystem must fight back by embracing the latest technological shifts.<\/p>\n Breaking down the key industry news<\/strong><\/p>\n Google has softened its stance on IP addresses, acknowledging their importance in CTV targeting and measurement. This is a game-changer for the industry, enabling advertisers to track household-level engagement with confidence. By shifting the focus from purely IP-based tracking to a household-level approach, we open the door for privacy-preserving technologies such as clean rooms, non-ID solutions, and CDPs to enhance both safety and regulatory compliance while maintaining measurement precision.<\/p>\n A major historical challenge in using IP addresses for CTV has been their fluid nature \u2014 household IPs change over time, reducing the accuracy of targeting and measurement. Digital Envoy\u2019s LOCID technology solves this by providing a stable identifier that remains consistent despite IP changes. This improves signal quality, strengthens attribution, and is a win for both advertisers and privacy advocates since a LOCID functions as a household ID rather than a personal identifier.<\/p>\n One of the biggest advantages here is the ability to connect cross-device activity at the household level. If a viewer sees an ad on their TV but later visits a website via their smartphone, LOCID enables accurate measurement of that conversion path.<\/p>\n AI is rapidly advancing, making it cheaper, more powerful, and more secure, especially with the rise of open-source AI models. New models are being released all the time that already this year show how to lower AI costs, improve sustainability, and are increasing in capabilities like reasoning, leading to better outputs. AI-based media planning is set to explode in 2025, further enhancing the efficiency and precision of CTV advertising. For CTV, AI can:<\/p>\n By leveraging AI in these ways, CTV can bridge the gap between traditional and digital advertising, making it a more effective investment for brands.<\/p>\n CTV can become a beacon for independent media<\/strong><\/p>\n The latest advancements in targeting and measurement will be critical in helping CTV compete with the dominant tech giants. By embracing AI, privacy-preserving solutions, and household-level tracking, CTV can level the playing field against Google, Meta, and Amazon. Unlike programmatic display, broadcast-quality CTV benefits from trusted content, strong advertiser relationships, and premium inventory \u2014 giving it a competitive edge.<\/p>\n However, CTV must be cautious to maintain its high-quality positioning. If it does not actively separate out low-value, long-tail inventory, it risks falling into the same trap as programmatic display, where fraud and low-quality placements have diminished advertiser trust. Curation will be key in maintaining CTV\u2019s reputation as a premium advertising channel, ensuring strong demand and sustained growth.<\/p>\n CTV \u2014 particularly broadcast-quality CTV (as opposed to the long-tail streaming inventory) \u2014 benefits from high advertiser trust, strong industry relationships, and premium content. This puts it in a class above programmatic display. However, to maintain this position, CTV must ensure that quality remains high and fraud is kept out. One key solution is curation, which can help uphold standards and ensure advertisers continue to see CTV as a premium investment.<\/p>\n What\u2019s needed: a unified ecosystem<\/strong><\/p>\n The CTV ecosystem must come together around householding, as this has the most potential to unify planning, buying, and measurement \u2014 from traditional broadcast TV to CTV. This will ensure a more seamless and effective advertising experience that aligns with evolving consumer behaviour and technological advancements.<\/p>\n To capitalise on these opportunities, the CTV ecosystem must come together, ensuring that all sides adopt the benefits of householding, IP measurement, AI planning, alongside traditional techniques. This includes:<\/p>\n Final thoughts<\/strong><\/p>\n The future of CTV is bright, but it must be built on the right foundations. The industry must ensure it doesn\u2019t become dominated by Google, Meta, and Amazon. To stay competitive, it must keep innovating. The open market can achieve this by working together, ensuring that advancements in AI, IP-based measurement, and householding drive the ecosystem forward while maintaining high quality. Instead, CTV stakeholders must embrace IP-based measurement, integrate AI-driven insights, and work collaboratively to make the ecosystem more open, scalable, and performance-driven.<\/p>\n With the right approach, CTV can grow beyond being just a branding channel and become a true performance powerhouse. The pieces are falling into place \u2014 the industry just needs to act.<\/p>\n Follow VideoWeek on Twitter<\/a> and LinkedIn<\/a>.<\/p>\n![\"\"](\"http:\/\/videoweek.com\/wp-content\/uploads\/2024\/12\/images.jpeg\")
<\/a>The world of Connected TV (CTV) is evolving rapidly, and recent industry developments highlight how the ecosystem can unlock its full potential. Google\u2019s policy change on IP address usage, Digital Envoy\u2019s introduction of LOCID, and advances in AI all provide a roadmap for CTV to become more effective, measurable, and scalable.<\/p>\n\n
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