The Controversy Over Made-for-Advertising Apps and a Call to Action for CTV Marketers
By Jonathan Baker
In the ever-evolving landscape of video advertising, connected television (CTV) has emerged as a powerhouse for brand promotion. The ability to stream targeted video content, paired with precision ads that resonate with viewers, has turned CTV into a marketer’s paradise. However, this innovation has birthed a controversial byproduct: Made-for-Advertising (MFA) apps. The pressing question is: do these apps bolster or undermine the effectiveness of CTV marketing?
Understanding MFA Apps
MFA apps are engineered to optimize ad revenue—sounds promising, right? Unfortunately, the reality is starkly different. These so-called “assets” are quickly becoming liabilities. A recent exposé by Media Post unequivocally condemned MFA apps, asserting that they not only “waste budgets” but have also amassed a staggering $58 million in ad spend this year. And that’s just the tip of the iceberg. The inaccuracies and inefficiencies they introduce are nothing short of alarming.
The Pitfalls of MFA Apps
If you are a marketer who is contemplating an investment in MFA apps, you should strongly reconsider. In case you’re already entrenched in this space, it’s time for a hard reassessment. Here are some critical downsides to keep in mind:
Adding to the complexity is the fact that MFA apps are pervasive across popular platforms like Amazon Fire TV, Apple TV, and Roku. Identifying these problematic apps is challenging; they often masquerade as legitimate content providers. To make matters worse, some publishers are not looking at the truly “big picture.”
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Quantity vs. Quality: A Dangerous Trade-Off
A particularly concerning insight from the Media Post article highlights a misguided trend: advertisers prioritizing revenue over user experience. This approach not only undermines the core purpose of CTV marketing—delivering relevant ads to the right audiences—but also reflects a shortsightedness that could jeopardize long-term success.
The allure of quick profits can be intoxicating, but opting for quantity over quality will inevitably erode brand loyalty. Users inundated with low-quality, disingenuous ads from MFA apps will increasingly disengage, while those brands committed to authentic CTV marketing will reap the benefits of a loyal customer base.
The Primacy of User Experience
Ultimately, user experience must reign supreme. Brands that deliver genuine, engaging content without relying on MFA apps will foster lasting relationships with their audiences. There’s no monetary value that can be placed on a satisfied customer, and the strength of your customer relationships is a key driver of business growth.
Customer Retention in the Age of AI
This brings us to the fundamental truth of this discussion: the value of existing customers is paramount. Next week, the EGC in collaboration with Intuit Mailchimp will host a roundtable event focused on customer relationship management (CRM) and its critical role in retention.
Join us for “The New Loyalty Equation: Unlocking CRM and Retention in the Age of AI,” where we’ll delve into how a robust CRM strategy can transform your customer relationships into a sustainable competitive advantage. AI is a game-changer in this realm, and we’ll explore how to leverage it effectively.
Mark your calendars for Wednesday, October 30th. We look forward to seeing you there and discussing how to navigate the challenges and opportunities in today’s advertising landscape.