Key Takeaways:

  • A new report from the Interactive Advertising Bureau (IAB) shows that even as advertisers increasingly adopt trusted buying methods like programmatic guaranteed, 43% of buyers still express "some or complete distrust" in the quality of connected TV (CTV) inventory.
  • 55% of respondents said they have "some or complete distrust" in CTV private marketplaces (PMPs), while more than two-thirds said the same about open exchanges and real-time bidding. Trust levels are similarly low in retail and commerce media.
  • Two main factors drive the CTV trust gap: malicious actors serving invalid inventory, and advertisers lacking certainty about the source and placement of legitimate inventory. The findings come from the second part of the video ad spend report, which also highlights how targeting capabilities and live content are influencing buying trends.

Deeper Dive:

Buyer concerns about CTV inventory quality come as ad spending on the channel in the U.S. is projected to grow 11% to $29.3 billion this year, according to previously released IAB data. In recent years, the CTV market has become increasingly saturated due to an influx of ad-supported streaming platforms and a rise in cord-cutters. High growth appears to be exacerbating the fraud and lack of advertiser visibility issues that have long plagued other areas of digital marketing.

"Buyers are asking: 'Where exactly is my ad being placed? Where is the inventory coming from? How much of it is invalid traffic (IVT)?'" said Chris Bruderle, VP of Industry Insights and Content Strategy at the IAB, in a statement accompanying the report.

Breaking down the CTV trust gap by buying method, retail and commerce media networks underperform, with 59% of advertisers expressing "little or no trust" in that area. Retail media networks have aggressively expanded into premium video in recent years to move beyond the bottom of the funnel (including through acquisitions), but still have a long way to go in refining their sophistication.

Despite this, the IAB notes that advertisers are not paying an additional premium to guard against fraud and improve delivery and accountability.

The industry group, which conducted the research with partners Advertiser Perceptions and Guideline, listed "cost" and "audience reach" as the top two reasons advertisers decide to reduce or withdraw spending from a particular streaming platform, with 47% of buyers citing each, tying for first place. Brand safety was cited by 41% of buyers (up from 39% last year), while placement transparency ranked last, cited by 34% (up from 29% in 2025).

Beyond the increased attention on trust issues, CTV is evolving in other ways. When ranking the top five criteria for TV and video ad spending, 49% of buyers listed "targeting capabilities" as the top factor, up 10 percentage points from last year's survey, surpassing "content quality" to take the number one spot.

Live digital video (including sports, award shows, and breaking news) is also drawing significant attention, with 93% of buyers saying the category is more valuable than other formats due to its superior audience engagement and potential to drive business outcomes such as website traffic. Sports content in particular dominated this year's TV upfront presentations, reflecting the buzz around cyclical events like the FIFA World Cup and brands' view of sports as a reliable way to reach consumers at scale.

However, a third of advertisers still do not believe live content is worth its premium. These respondents cited gaps in achieving business outcomes, real-time measurement, and interactive capabilities.