Unlocking CTV’s Full Potential: Bridging Fragmentation to Drive Smarter Monetization

CTV is growing. In 2025, U.S. CTV ad spending is projected to reach $33.35 billion, growing to nearly $47 billion by 2028. That’s when it will surpass traditional TV for the first time. Streaming has taken over how we consume content and advertisers are following the audience with more confidence.

But behind the excitement lies a structural issue that still plagues the ecosystem. The infrastructure of CTV advertising is fragmented, inefficient and can’t support long term growth without change. For media buyers, streaming operators, adtech platforms and publishers this is not just a technical challenge. It’s a threat to monetization, measurement and viewer retention.

Growth Without Infrastructure Is a Risk

The CTV market’s growth is masking its core inefficiencies. More advertisers are moving budget into CTV but the system they are plugging into is broken. Different platforms run on separate operating systems. Creative standards vary by app. Measurement is inconsistent. And inventory is locked in silos that buyers can’t navigate.

In fact, only three companies will control more than 10% of CTV ad sales by 2026, which shows just how spread out and competitive the environment is. This complexity slows down deal flow, increases setup costs and limits how much inventory can be activated. Growth without interoperability means more money is being poured into a system that leaks value at every turn.

Wasted Inventory and Operational Friction

Fragmentation has a cost. Many CTV publishers can’t sell all their ad slots. According to some estimates a single CTV service has more than 100 supply paths. Buyers see repeated exposure, duplicate impressions and incompatible targeting.

Fill rates are suboptimal despite programmatic buying. The ecosystem’s lack of shared standards creates inefficiencies across both direct and automated sales channels. Second screen usage and co-viewing further distort reach metrics making it harder for advertisers to measure outcomes and justify spend.

Inventory waste is not just a publisher issue. It also missed reach for advertisers and reduced campaign performance. Without tighter integration between platforms buyers and sellers are leaving value on the table.

Viewer Experience Can’t Be an Afterthought

Aggressive monetization tactics are already backfiring. Viewers are being served repetitive, poorly timed or too many ads. This frustrates users, reduces engagement and causes churn. When viewers get annoyed they either pay to skip the ads or switch to another service.

In a market where consumers have more choices than ever, retention depends on respecting the viewing experience. That means implementing frequency caps, rotating creative and experimenting with new ad formats that feel native to the content.

Research shows CTV ads can deliver 97-98% completion rates. But that only holds true when the format and timing is aligned with what viewers expect. CTV can be a premium environment for advertisers but only if the experience feels seamless and non-intrusive.

Counterarguments and the Real Response

Some say growth will solve these problems on its own. But growth without coordination will only make fragmentation worse. More buyers entering the space without better tools will amplify waste not reduce it.

Others claim programmatic tools already solve fill rate issues. While automation has improved delivery it can’t overcome incompatible formats, separate data systems and inconsistent measurement frameworks.

Another popular argument is viewers will tolerate ads if the content is free. That’s only partially true. Viewer tolerance is fragile. If the experience becomes too disruptive people simply unsubscribe, switch services or install blockers. Monetization can’t succeed without retention and retention hinges on quality.

What Needs to Happen Now

First and foremost standardization. Industry initiatives like IAB Tech Lab’s “Ad Format Hero” project are a good start. By aligning formats and delivery standards the industry can reduce integration costs and speed up campaign execution.

Next, more investment in smarter measurement and targeting. Advertisers need to be able to track reach and frequency across platforms with confidence. That means building cross-channel identity solutions and supporting interoperable metrics that work across both linear and digital video.

Finally the creative side of advertising needs more innovation. Ads should be built for the environment they appear in, not just repurposed from linear TV. Interactive elements, shorter units and context-aware formats can help maintain engagement without overwhelming the viewer.

The Stakes Are Too High to Wait

CTV is no longer an experimental channel. It’s a core part of how people watch content and how advertisers reach modern audiences. But the infrastructure still hasn’t caught up. Fragmentation, inefficiency and viewer fatigue are holding the market back from reaching its full potential.

For media buyers, adtech leaders, publishers and platforms the message is clear. Now is the time to invest in the systems, standards and creative strategies that will shape CTV’s next chapter. The audience is here. The opportunity is waiting. What happens next is up to us.