- The Interactive Advertising Bureau (IAB) has developed an industry guide and road map for developing conversion APIs (CAPI) for the connected TV (CTV) ecosystem to support measurement, privacy-safe data collaboration and performance outcomes.
- The guide acknowledges the shortcomings of the CTV channel, like extensive fragmentation, limited identifiers and technical barriers, which could hinder future growth at a time when performance-driven marketing is a key focus for marketers.
- With widespread adoption of a standard framework, CTV ads have the potential to deliver accountability and performance on the identical level as social and search, per the IAB. On the buy side, nearly two-thirds of advertisers using a CAPI report an improved return on ad spend, its research shows. However, 72% of publishers said technical complexity is hindering adoption.
As an promoting medium, CTV holds great promise, nevertheless it still has a protracted approach to go to match the worth proposition of its digital brethren, search and social. A key takeaway from the IAB’s research is that and not using a approach to show clear, measurable ROI, CTV is more likely to face reduced demand from advertisers in search of platforms that may show clear results and accountability.
“As advertisers shift toward outcome-based buying, platforms that may’t prove results shall be deprioritized,” reads the manager summary of the report. This is already bearing out: IAB’s most up-to-date 2025 ad spending forecast indicated marketers were shifting budgets to media where their spending may very well be higher tied to results, like search and social. Still, IAB predicted CTV spending would reach greater than $72 billion in 2025 and that 58% of all video spending could be on digital video.
IAB’s guide lays out a framework to standardize CTV reporting, addressing concerns and proposals on either side of the equation. The report is predicated on extensive research from each buy-side advertisers and sell-side publishers, including a survey of brands, agencies, publishers and technology leaders across the industry.
On the buy side, nearly two-thirds of advertisers who’re currently using CAPI report an improved return on ad spend, including more complete conversion data, stronger attribution and more efficient optimization. Most of those advertisers user CAPI as a part of a hybrid measurement strategy, combining it with pixels, SDK integration and third-party attribution tools to make sure resilience and redundancy.
The biggest barriers to adoption are the complexities of integration, compliance and lack of standardization. In addition, many are concerned about privacy. More than 70% of advertisers express reservations about sharing data, citing competitive sensitivities and fear of misuse.
“The implication is that for CAPI to scale, the ecosystem must collectively address each the technical and trust gaps—streamlining implementation while embedding privacy-first frameworks that instill confidence in data sharing,” in response to the report.
The report calls upon advertisers to align internally, clarify what they need and push their publishing and technology partners to adopt those standards. According to the IAB, publishers have indicated a willingness to implement a standardized CAPI framework, they are only waiting to see what shape it should take.
That doesn’t mean the sell-side can’t make improvements by itself, particularly within the areas of transparency and conversion tracking. Only 21% of publishers say they at all times provide advertisers with access to logs or dashboards, while 18% sometimes provide access and 36% never do and 1 / 4 are unsure, in response to the IAB’s research. Such fragmentation creates friction for advertisers, who try to validate their performance and troubleshoot integrations.
Similarly, publishers have grow to be adept at supporting bottom-funnel actions like sign-ups, purchases and subscriptions, but are less experienced with mid-funnel events reminiscent of cart abandonment, logins and searches, that are critical for remarketing and richer consumer journey insights.
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