SAN JUAN, PR — In the rapidly evolving world of connected TV (CTV) advertising, a seismic shift is underway.

According to Jake Richardson, Head of Connected TV at Moloco, the industry is pivoting from traditional measurement-focused approaches towards a more outcome-centric paradigm.

In this video interview with Beet.TV, he says the new approach aims to quantify the tangible value derived from advertising spends.

The reach for reach

“We’re moving out of a place of measurement as the currency and into a place of, ‘what did I get in return for my purchase?’” Richardson says.

He highlights the growing demand for accountability in CTV ad buys, where success is no longer gauged by reach and frequency but by the concrete returns on investment.

“It’s got to say, ‘Hey, you gave me a million dollars. Did I get back 1.5 million in terms of actual returns on investment?'”

Machine Learning: The Catalyst for Real-Time Optimization

Transitioning to outcome-based metrics isn’t just a conceptual change; it’s a technical revolution fueled by machine learning. “Moloco is a machine learning company,” Richardson explains, emphasizing the crucial role of real-time analysis and optimization in performance marketing.

“What used to happen is we’d build out what we think is how the world works…and then we’ll look at it and see how it performed after the fact.” He contrasts this with the dynamic approach afforded by machine learning, where “every single impression at the moment it’s served” is evaluated for its potential to deliver the desired outcome.

Richardson dismisses any notion of machine learning being a mere buzzword. He positions it as a fundamental component that powers major ecosystems.

And Richardson stresses the supremacy of the advertiser’s first-party data to power that learning. “No one knows their customer as well as the advertiser themselves,” he notes, placing the onus on advertisers to leverage their proprietary insights.

The Democratic Future of CTV

Looking ahead, Richardson sees the fragmented nature of the CTV landscape not as a barrier but as an opportunity for a more democratic ecosystem. Nevertheless, he acknowledges the challenges in rallying different providers to align on standardized approaches. “It’s more of a democracy, it’s more federated,” he says, expressing both excitement and recognition of the hurdles ahead.

Richardson is most energized by the prospect of advertisers driving the push towards outcome-based value. “When that shift starts to happen…this ecosystem can really start to punch above its weight class again,” he predicts.

The implication is clear: the future of CTV advertising lies in its ability to demonstrate clear, quantifiable returns, and the industry must rally to meet this new standard.

You’re watching Beet.TV’s coverage of Beet Retreat San Juan 2024. This series and event is sponsored by Albertsons Media Collective, Moloco, OpenX and TransUnion. For more videos from the series, please visit this page.