Connected TV Ads Surge but Face Fragmentation Fraud and Measurement Gaps

Connected TV (CTV) advertising is experiencing rapid growth, yet structural challenges including fragmentation, fraud, and measurement gaps continue to hinder its potential, according to Tal Melenboim, a technologist specializing in digital media and identity solutions. In an interview with Benzinga, Melenboim highlighted that the U.S. streaming market already accounts for over 44% of total television viewing, with YouTube alone contributing 12% of that share [1]. This shift is driving significant advertising investment toward CTV, which is expanding at double-digit rates and gaining traction in live sports programming.

Despite this momentum, Melenboim pointed to fragmentation as the most critical issue facing the industry. Discrepancies in measurement systems, identity tracking, and data signals across platforms make it difficult to assess campaign performance consistently [1]. The absence of a standardized framework for tracking engagement and frequency compounds this problem, limiting the accuracy of insights derived from CTV campaigns. Additionally, inconsistent user identity systems create data silos, further complicating cross-platform analysis.

Fraud remains another persistent challenge, with Melenboim noting that fraudulent activity continues to undermine trust in CTV advertising. While efforts are underway to address these concerns, the lack of a unified approach to detection and prevention persists across the ecosystem [1]. This issue is exacerbated by the growing complexity of the CTV landscape, which requires continuous adaptation to emerging threats and technologies.

To tackle these challenges, Melenboim advocates for the adoption of shared identity systems, privacy-safe data clean rooms, and supply path optimization. These solutions aim to create a more unified and secure environment for advertisers and publishers, enabling more consistent data tracking and reducing the risk of fraud [1]. He also emphasized the importance of shifting advertiser focus from completion rates to metrics that demonstrate incremental reach and sales lift, as CTV inventory continues to scale.

Privacy regulations are further reshaping strategies in the CTV space. Melenboim noted that laws such as California’s CPRA and U.K. scrutiny of device fingerprinting are driving platforms toward more consent-based data practices [1]. This presents both a challenge and an opportunity, as the CTV environment is inherently more privacy-conscious than the open web, allowing for household-level planning and measurement in compliance with regulations.

Looking ahead, Melenboim anticipates that CTV will increasingly be treated as an equal channel to YouTube in ad planning. He argued that the shift in viewer behavior has already begun, with traditional TV being gradually overtaken by CTV in terms of both reach and ad spend [1]. However, for CTV to fully realize its potential, the industry must overcome its current limitations through collaboration and the adoption of common standards.

The path forward requires ongoing cooperation among platforms, advertisers, and technology providers. Without such alignment, the promise of CTV—offering precision and scale in a digital-first environment—risks being undermined by inconsistent data, misleading metrics, and unreliable performance tracking [1]. As the market continues to evolve, addressing these foundational challenges will be essential to unlocking the full value of connected TV advertising.

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[1] Fragmentation, Fraud, And Measurement Gaps Remain... (https://www.benzinga.com/markets/tech/25/08/47173538/fragmentation-fraud-and-measurement-gaps-remain-biggest-obstacles-for-connected-tv-says-technologist-tal-melenboim)