IAB Launches New Guide to Promote Standardized Conversion APIs in Connected TV Advertising

Bridging the Outcome Gap in Connected TV Advertising

The Interactive Advertising Bureau (IAB) has recently released a groundbreaking guide titled The Role of CAPI in Closing the Outcome Gap for CTV, aimed at catalyzing the adoption of standardized Conversion APIs (CAPI) within the Connected TV (CTV) advertising sector. This initiative seeks to optimize measurement protocols and ensure that advertisers can achieve outcome-driven results akin to other digital channels.

A Call to Action for CTV Developers

IAB's CEO, David Cohen, emphasized the consistent message from advertisers about the importance of outcomes. He stated, “This report is a call to action. Without standardization and implementation of CAPI, CTV platforms will struggle to reach their full potential, and will lose performance budgets to more measurable channels.” The guide serves as both an educational resource and a strategic playbook for stakeholders, including brands, agencies, and technology partners, aiming to integrate CAPI effectively.

The document outlines methods for using CAPIs to facilitate privacy-safe data sharing and enhance the measurement capabilities of CTV, ensuring that advertisers can hold their campaigns to the same expectations they currently set for search and social media platforms. It provides a clear roadmap for brands navigating the often fragmented landscape of CTV advertising.

Ensuring Accountability in a Growing Sector

Despite CTV being one of the most rapidly expanding advertising avenues, its measurement capabilities have lagged due to various challenges, such as fragmentation and limited identifiers. However, when effectively implemented, CAPI allows secure server-to-server data exchanges that can effectively connect ad exposure to real outcomes, which, in turn, leads to more sophisticated campaign optimization.

Cohen's sentiments are echoed by Jamie Finstein, IAB’s Vice President of Media Center, who noted that advertisers are increasingly inclined towards streaming services and demand accountability alongside their viewing experience. The guide advocates for a standardized CAPI approach as a way for CTV to deliver both required functions.

Survey Insights and Industry Collaboration

IAB's efforts include proprietary surveys conducted with a wide array of brands, agencies, and publishers. The insights reveal that while a significant 75% of advertisers utilizing CAPI are willing to adjust their budgets based on conversion success, 72% of publishers face technical complexities that act as hurdles for widespread adoption of CAPIs.

The industry survey noted several challenges, such as the current fragmentation of the CTV ecosystem and issues relating to limited identifiers and engagement signals. These findings underscore the necessity for collaboration and a unified approach across the CTV landscape, as illustrated in the report.

Charting the Way Forward

The guide not only identifies existing gaps within the CTV landscape but also prescribes actionable steps toward establishing a standardized framework. This framework entails the alignment of event taxonomies, metadata, and data flows which aim to mitigate operational difficulties for advertisers. The initiative emphasizes the role of IAB Tech Lab's CAPI Standardization Project in creating more scalable solutions across the ecosystem.

Finstein encapsulated the guide's mission succinctly by inviting all stakeholders to collaborate: “By offering a practical roadmap grounded in data and cross-industry input, IAB aims to accelerate scalable CAPI adoption.” This will not only ensure that CTV can fulfill the rising demands but also enhance trust and accountability in the advertising space.

The guide is now available for all industry players, providing the much-needed resources to ensure that the performance of CTV advertising rises to meet the expectations set by more traditional digital channels.

Access the guide here.

The Interactive Advertising Bureau stands at the forefront of empowering the media and marketing sectors to thrive amidst the digital economy, advocating for innovative standards, and educating stakeholders on the critical nature of digital marketing.