Why Ad-Supported TV Is Having A Moment

In our latest Thought Leaders Circle Video, Rob Caruso, VP, Ventura TV OS at The Trade Desk explains why consumers are turning to ad-supported television and what needs to be done to ensure that they continue to have a good experience with the ads so that advertisers have better outcomes.

ROB CARUSO:

What's good for consumers is we're seeing obviously a shift towards more ad-supported TV, which is really just, I call it a back to the future moment of just what TV has always been, right? We had this pendulum swing to subscription-based video, and obviously for a variety of reasons that really helped usher in streaming. And then we've seen the pendulum kind of swing back sort of to the middle, which is to say, there's really nothing wrong with ad-supported TV. If anything, it actually makes it more accessible to many more users.

I think where advertising has typically had a potentially slightly negative connotation is poor advertising, right? Where the frequency is off or the relevancy is off. And I think when you clean up the supply chain and increase and boost the fidelity of that signal, that is what allows you to really improve the ad experience and take it to levels that go way beyond what we've ever seen in the past, right? We're already seeing ad loads reduced from what we've seen on traditional linear.

And I think you can still lead to better outcomes for the advertisers with reduced ad loads. I don't think it means an increase of ad loads. think as long as those ads are relevant and hyper-targeted, I think it will lead to the outcomes that the advertisers are seeking, but in a way that's very palatable to users. I think advertising done properly, advertising done well, advertising done as sort of entertainment and relevant and targeted is actually bit of an art form. And I think not only would be welcomed by users, but...

also largely unnoticed, right? Because it almost serves as part of the entertainment experience as opposed to a departure from the entertainment experience or something that gets in the way of it.