Technology

Perverse Incentives Slow Adoption of IAB Video Ad Standards

Kristaps Safranovs / September 4, 2023

The IAB Tech Lab recently issued updated video ad inventory classifications to improve quality signals. However, only 20-30% of publishers have adopted them so far.

Why the resistance? The new standards devalue non-video ads played in video experiences. This could lower CPMs for text-heavy publishers using video units in articles. There are also no consequences for passing non-compliant signals, as DSPs accept them.

The unclear accountability and potential revenue impacts create little incentive for publishers to update practices. But buyers grow increasingly frustrated with uneven inventory quality in programmatic video.

Linear TV Advertising Remains Strong Despite Cord-Cutting

Streaming may be surging, but linear TV still dominates ad budgets. One factor is live sports programming. Most top streaming services also have limited ad-supported options – only around 25% of viewers opt into these tiers currently.

New sports rights deals and primetime delays from ongoing strikes may shift budgets to streaming soon. But linear retains advantages while streaming ad models remain limited.

Debate Emerges Around AI Participant Selection

Senator Schumer’s upcoming AI forum to shape potential regulations includes major tech companies but lacks diverse expert voices. Only one creative representative is included, despite copyright concerns.

Critics say big tech is over-represented compared to AI researchers and dissenting views. A Copyright Office public comment period provides some alternate input. But tech leaders may hold more sway.

Meanwhile media sites increasingly block AI scrapers, social platforms trial new features, cyber threats emerge, and layoffs continue across ad tech. The turbulent times highlight challenges and opportunities ahead.