IAB Pushes for Standardization as CTV Ad Formats Surge

man eating chips while watching tv
Photo by Amateur Hub on Pexels.com

From pause ads to screensaver and shoppable ads, we’ve seen a surge of new—or at least more widely adopted—CTV ad formats over the last few months.

In response, IAB Tech Lab announced the launch of “Ad Format Idol”—a name we must all collectively “boo” (sorry!), but the concept is promising. The goal is to standardize how emerging CTV ad formats—such as “picture-in-picture ads, pause screen ads, shoppable ads, and brand bugs,” as specifically listed by the IAB—are described in the programmatic bidstream, making it easier to buy and scale them.

“Standardization will be essential for efficiency and scalability in delivering these experiences,” reads the announcement press release. “Without it, advertisers and publishers will face significant challenges in maintaining effectiveness across platforms.”

You can submit your “best CTV ad formats” to the “Ad Format Idol” initiative for review between now and January 22, 2025 (see link here). A Task Force from Tech Lab’s Advanced TV Commit Group will evaluate entries, and the findings will inform updates to specs by the Advanced TV and Programmatic Supply Chain Working Groups.

Why This Matters:

CTV is seeing major growth in both viewership and ad spend. CTV viewership has risen steadily, with daily viewing hours up 5% year-over-year. As more viewers turn to streaming, ad spending in CTV is expected to hit $35.2 billion in 2024, or basically a 20% increase.

With this growth, new ad formats like interactive and shoppable ads are debuting, allowing for greater engagement and even commerce directly from the TV. Adtech companies who deliver products in these areas have seen a lot of growth, too (see Perion). However, the CTV landscape is fragmented, with many platforms and providers, creating challenges for advertisers. Different platforms support different formats, making it difficult to build universally compatible campaigns, while inconsistent measurement stalls advertisers’ ability to compare performance and ultimately optimize budgets.

To address these issues, industry bodies like the IAB are working on creating standardized guidelines for CTV formats. These efforts will (hopefully) simplify ad buying, boost scalability, and improve measurement. This is, of course, good for future growth of CTV advertising.

Experts React:

We asked Garrett Johnson, Marketing Professor at Boston University’s Questrom School of Business, about the announcement, and he said, “Standardization is key to programmatic advertising.” However, he also noted, “Some companies will resist standardization because they may fear commoditization or worry that advertisers can more easily move to competitors. Others, however, will see that standardization reduces friction for advertisers, leading more to adopt CTV and expand CTV’s share of their budget.”

Shiv Gupta, founder of U of Digital, says, “If a vendor’s format becomes an industry standard, more people (publishers and advertisers) will use it, giving them a first-mover competitive advantage (all boats rise). They get to help set the standards, which gives them an advantage from a product and commercialization perspective. If everyone agrees on the standard, it becomes easier to sell and execute. Big-time marketing boost.”

He also compared it to why The Trade Desk has invested so heavily in pushing UID2 forward as it has allowed them to shape industry standards for identity.

Our Take:

The IAB Tech Lab appears to be responding to a clear wave of CTV ad format announcements released just ahead of Advertising Week. As more platforms introduce new formats, aligning on common standards will help reduce fragmentation and make it easier for advertisers to buy, scale, and optimize campaigns across the ecosystem. This, in turn, should benefit everyone in the CTV space—platforms, publishers, adtech vendors, measurement companies, and more.

You May Also Like