What is ‘ad waste’ in CTV (and how to reduce it)?

Ad waste is exactly what it sounds like – it is the money wasted by advertisements that don’t convert. However, when it comes to connected TV (CTV), there is another way in which you might waste advertising. 

Ad waste in CTV

With CTV, people may find a way to skip the ads using ad blockers, or simply leave the room to make a cup of tea in the ad break. Not only that, but as CTV ads play through apps and external streaming devices, adverts might not only be playing to an empty room, but the TV itself might be turned off even if the streaming device is still on. This can lead to ad impressions being counted, even if there was noone there to view them.  

In fact, one study by GroupM and iSpot has found that a significant amount of ad impressions are being reported as being delivered, even if the television is actually turned off. The report found that 10% of CTV advertisements play when the TV is off, which amounts to around $1 billion of ad waste a year. 

The overcounting reportedly varied on the make and model of the TV, the device used to stream the content, and the platform it was published on, but ranged somewhere between 2.5% and 15% overall. 

As you can see, a significant amount of ad spends and resources can be wasted in CTV – but how can you reduce ad waste? Let’s take a look at a few ideas. 

Target more specific audiences 

The more broad your target audience is, the more ad waste you can expect to see. Consider the kinds of people who might want your product or service, and narrow it down to a more niche audience. 

That said, there may be more than one target audience you can aim to convert. Let’s use protein shakes as an example – your obvious target audience will likely be younger generations who are avid gym goers. However, you might also want to target older demographics who are looking to lose weight or improve their overall fitness. 

Don’t forget to consider times and locations

Once you have your target audience, get in their mindset – where are they based and when will they be watching TV? 

Generally, the time to target will likely be outside of typical office hours, unless your target audience is students or retirees. You might also want to avoid meal times where possible to reduce the risk of your advert playing to an empty room if the TV is merely on for background noise. 

Get help from the experts 

Perhaps the easiest and stress-free way to reduce ad waste is to partner with an advertising-based video on demand (AVOD) agency that has the expertise to maximise results and minimise wastage. 

Market-leading support, like AVOD services by Finecast, can help you to target the right people, at the right time, in the right place, using first-class data. You can also benefit from a single point of access to your addressable ads, meaning you can gain quality insights, track progress, and tailor your bespoke niche audience all from one place. 

Final thoughts

In summary, CTV is subject to quite significant ad waste due to the way the streaming technology functions. However, you can aim to reduce ad waste through better audience targeting.