The Yahoo DSP 2025 Guide for Savvy TV Buyers

We used to think making a TV ‘recipe’ was simple: follow the steps, use the same ingredients, and you’d get the same result every time. But CTV? It’s shaking things up in a major way. It’s like discovering a whole new world of flavors and ingredients. This isn’t just a shift; it’s a significant transformation, and we're here to hand you the insider’s guide to creating CTV magic.

The Growing Demand for Transparency in CTV

Connected TV has become a major player in U. S. households, driven largely by the surge in smart TV adoption. According to eMarketer, there are 117+ million CTV households, of which 86 million have smart TVs and millions more use devices like Roku. If you’re a brand looking to reach today’s audiences, CTV is an essential channel to reach them.

However, the continued increase in viewership highlights a critical issue: the need for greater transparency. As Travis Freeman, Chief Media Officer and SVP of Demand Generation at Inspire Brands, pointed out at the CTV Connect Event, “It’s mind-blowing how big this channel is and how little information we are getting back.” Freeman’s sentiment echoes the concerns of many advertisers who are accustomed to the detailed reporting and metrics available with traditional linear TV. 

Inspire Brands, a major player in the restaurant industry with brands like Dunkin’ and Sonic, represents the modern advertiser’s approach. They utilize a consolidated marketing strategy, treating their brands as a portfolio while still allowing for individual brand identities. Their shift towards private marketplace deals using audience data from Epsilon and broadcaster partners like Paramount highlights the importance of data-driven decision making and strategic partnerships.

Freeman also introduced the concept of “iCPM” (Inspire CPM), a customized metric that combines audience size, revenue potential, and cost. Even ADT tracks a bespoke metric called “marketing cost per installation” that measures the impact of media and is now ADT’s “primary currency for decision-making.” This innovative approach highlights the need for customized metrics that align with specific business objectives. Such tailored solutions and metrics are indicative of a broader industry trend towards greater accountability and a demand to demonstrate the true value of advertising spend.

Navigating Regulatory Changes and Industry Trends

The advertising industry is not only grappling with technological shifts but also the potential impact of regulatory changes. Robert F. Kennedy’s proposal to ban pharmaceutical advertising from television, as reported by Adweek, is a prime example. The potential ban could have significant consequences for the industry, given that pharma represents a substantial portion (10-12%) of total ad spend.

Such a ban would likely lead to a reallocation of ad dollars, reminiscent of the tobacco advertising ban of the 1960s. As Adweek suggests, “Smart advertisers will use this time to develop robust contingency plans, explore new formats and platforms, and test approaches that could thrive in a post-pharmaceutical TV advertising landscape.” These examples illustrate the dynamic nature of our industry, subject to both regulatory shifts and evolving market trends.

Beyond regulatory developments, several key trends are shaping the CTV landscape:

• Shift from Linear to Streaming: Upfront spending on linear TV is decreasing while CTV Upfront/NewFront spending is experiencing significant growth. eMarketer predicts that CTV will overtake linear TV on its own by 2027. This shift is driven by more viewers spending time on streaming platforms, making CTV an essential channel for advertisers trying to reach today’s audiences.
• Convergent TV Landscape: Despite the rise of streaming, linear TV still maintains a considerable share of investment. Advertisers must manage and measure reach and frequency across both linear and digital, requiring reliable measurement and strong data partnerships.
• Focus on Advanced Audiences: Traditional demographic targeting is giving way to advanced audience strategies. Brands are increasingly targeting agency-built audiences, requiring the ability to match and execute against these audiences at scale.
• Increased Accountability: Advertisers face pressure to demonstrate the value of their ad dollars. There’s scrutiny around various tech fees, eCPMs, and a demand for tangible outcomes tied to CTV investments.
• Growth of Live CTV: Live sports and live events are becoming more available programmatically, driven by increased streaming consumption and networks seeking monetization opportunities. Activating this inventory presents new challenges, which makes partnerships and certifications in the live sports space increasingly important.

What Advertisers Need to Consider in 2025

In this complex and evolving environment, advertisers should focus on several key considerations:

• Transparency and Control: Advertisers should strive for as much transparency and control as possible to ensure their campaigns are effective and budgets are being used efficiently. Understanding the full supply chain and data flows is crucial for accountability.
• Data-Driven Strategies: Access to diverse, vetted data for targeting, optimization, and measurement is essential. Privacy-complaint data practices and strong data partnerships are non-negotiable.
• Premium Supply Access: Access to premium, brand-safe supply across all channels is vital. Strong integrations with major publishers and extensive CTV inventory ensure advertisers reach their target audiences effectively.
• Advanced Technology: AI-powered solutions and automation can significantly enhance campaign outcomes. Leveraging technology for optimizing bidding, pacing, and creative delivery is increasingly important.
• Unified TV Measurement: With the evolving TV currency landscape, advertisers need trusted measurement solutions. Unified measurement across linear and CTV is essential for a holistic view of campaign performance.
• Flexibility and Customization:  Every advertiser has unique needs and goals. Flexibility in bidding strategies, measurement metrics, and reporting options is crucial for tailoring campaigns to specific requirements.

The Future of CTV Advertising

The future of CTV advertising demands adaptability and strategic thinking. Advertisers who embrace data-driven strategies, prioritize transparency, and stay informed about industry trends will be well positioned for success.

The shift to CTV is not just a trend; it represents a fundamental transformation in how we consume and engage with television. By staying informed, being strategic, and choosing the right partners, advertisers can leverage the power of CTV and unlock new opportunities for growth.

What to Expect in This Blog Series

This is the first of our series exploring the evolving world of CTV advertising. To help advertisers navigate this complex landscape, we’ll be diving deeper into specific areas in our upcoming posts. Here’s a sneak peek at what you can expect:

1. Efficient Working Media in CTV: We’ll show you how to make every advertising dollar count in the CTV space.
2. The Potential of Scaled TV Data: You’ll learn how to leverage first-party data and identify solutions to enhance your targeting and measurement.
3. Premium CTV Drives Results: We’ll explain why accessing premium CTV inventory matters and how it impacts your results.
4. Transparency and Control in Your CTV Campaigns: We’ll cover the importance of understanding the supply chain and ensuring brand safety.
5. AI-Driven Optimization in CTV: You’ll see how artificial intelligence can optimize your CTV campaigns and drive better performance.
6. Capabilities for Live CTV Viewers: We’ll address the unique challenges and opportunities of engaging live audiences on CTV.
7. The Intersection of Retail and CTV: We’ll explore how retail media strategies can be effectively integrated with CTV advertising.
8. Build a Winning CTV Strategy: A complete guide and tactical resource for advertisers to use at the end of the series.

Stay tuned for more in-depth analysis and actionable insights as we continue to explore the exciting and ever-changing world of Connected TV advertising.