Should Manufacturers Share in CTV Ad Revenue?
▼ Summary
– CTV device makers (OEMs) and streaming platforms are demanding a share of publishers’ ad revenue, arguing their role in ad delivery justifies it.
– Publishers are resisting this trend, fearing it could extend to in-content monetization, and are exploring alternative ad formats like sponsorships and product placements.
– Unlike the open web, where publishers directly monetize content, CTV’s closed ecosystem allows OEMs and platforms to exert control over ad breaks and in-content ads.
– Publishers face operational challenges as OEMs and platforms pressure them to disable certain ad formats or share revenue, limiting innovation and revenue potential.
– Industry leaders must establish clear contractual boundaries to protect publishers’ control over in-content monetization and ensure fair revenue distribution.
The battle over connected TV (CTV) ad revenue is heating up as device manufacturers and streaming platforms demand a larger slice of the pie, but publishers are fighting to protect their hard-earned profits. With the rapid expansion of CTV, content creators face mounting pressure from hardware makers and app providers who argue they deserve a share of advertising dollars. Yet publishers question whether these intermediaries have truly earned their cut, especially when it comes to monetization strategies beyond traditional ad breaks.
Unlike the open web, where publishers directly profit from ad impressions, CTV introduces multiple layers of middlemen. Device manufacturers, operating systems, and third-party platforms all play a role in delivering content, but their claims to revenue shares often lack justification. While they may facilitate ad delivery during commercial breaks, their involvement in in-content monetization, such as sponsorships, product placements, and dynamic ads, remains questionable. Publishers increasingly rely on these formats to maximize earnings, but some platforms now demand a percentage or even restrict certain ad types altogether.
The push for revenue sharing threatens to stifle innovation and limit publishers’ control over their own content. If manufacturers and platforms dictate which ad formats are allowed, they could eventually develop their own proprietary solutions, sidelining publishers entirely. This scenario would not only reduce revenue but also degrade the viewer experience by prioritizing platform interests over creative ad integrations.
To safeguard their future, publishers must establish clear contractual boundaries. They should retain full ownership of ads embedded during production, such as static product placements, while allowing platforms to monetize their own inventory, like home screen or pause ads. Negotiations must also account for emerging ad formats, ensuring publishers maintain flexibility as the industry evolves. Without firm agreements, intermediaries could continue encroaching on monetization channels that rightfully belong to content creators.
CTV advertising is projected to grow nearly 7% annually through 2029, making it crucial for publishers to secure their fair share. By asserting control over in-content monetization now, they can protect revenue streams, foster innovation, and sustain the high-quality programming that attracts audiences in the first place. The time to act is before manufacturers and platforms cement their dominance, leaving publishers with fewer options and shrinking profits.
(Source: Streaming Media)
