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In this episode of A Coffee With... Rachael Stone, AV business director at WPP Media, joins ExchangeWire's John Still over a latte to chat CTV and measurement.

CTV functions primarily as a powerful, targeted awareness-driver that complements traditional TV, especially as linear's influence wanes. However, the market's structure hasn't quite kept pace with the technology's evolution, creating complexity for agencies and clients alike.

As client expectations for accountability and demonstrable outcomes grow, the industry must innovate beyond simple reach metrics and embrace more interactive, data-rich advertising formats to prove CTV's value within the broader, integrated media funnel.

CTV's Definition and Role

While a single "TV" label might be the future, current distinctions (BVOD, SVOD, etc.) are still necessary. These categories evolved organically as new technologies were added one by one. Rachael suggests the industry may be reaching a point where a strategic step back is needed to create a new, more unified framework, as the current additive approach is becoming unwieldy.

"I don't think there's necessarily a right answer or a silver bullet to where CTV sits and fits into everything. But I think there's always going to be value in TV in whatever way we look at that. Linear TV, yes, might be kind of becoming less important [...] but the fundamentals of "TV" are still very much there. It is still really trustworthy, people see it as more premium. The multiplier effects of everything else works harder when your TV is live – that is very much true of the holistic view of TV." —Rachael Stone

Unlike the broad reach of traditional TV, CTV allows for precise targeting using data overlays to reach specific audiences. Its effectiveness is maximised when integrated with other channels. The goal is to demonstrate how CTV's upper-funnel impact directly contributes to lower-funnel outcomes, rather than judging it solely on direct conversion metrics, which isn't its primary function on most media plans.

CTV Measurement & Standardisation

A universal measurement standard for CTV is a critical, ongoing conversation. Existing solutions like CFlight are limited, while broader initiatives like Project Origin have progressed slowly because a standard that benefits one platform might disadvantage another, creating resistance.

Client focus is shifting away from simple metrics like reach and frequency. They now want to understand the tangible impact of their ads: Did viewers remember the ad? Did they search for the product? Did they make a purchase? This growing demand for proven outcomes and better ROI accountability brings expectations from the digital space into the new version of TV.

Future of CTV Advertising

Interactivity is a key area of innovation for CTV advertising, like Amazon's "add to basket" button or QR codes that allow for immediate consumer action. Such features are becoming more natural for viewers, even though initial adoption was slow. This power to interact instantly, which traditional TV never had, is a valuable development in CTV.

While some interactive formats have faded as viewing shifted to lean-back TV screens, there are still opportunities for more creative development. An example is ads that cleverly integrate into the user experience, such as by playing on the viewer's action of pausing. The future of CTV will see more interesting formats as advertisers and platforms innovate to enhance the ad experience.