In this article…
Artificial intelligence (AI) and connected TV (CTV) have a perfect synergy that’s revolutionizing how advertisers connect with their audiences. CTV serves as a medium for streaming content, while AI acts as a sophisticated technology that improves the performance of CTV advertising campaigns. The integration of these two technologies has paved the way for advertisers to reach their target audience more effectively, making CTV advertising a powerful and efficient tool.
In this blog post, we’ll dive into how these technologies work together — and why you should jump on board with AI for CTV advertising if you haven’t already.
Why AI and CTV are a great match
CTV and AI are transforming how advertisers connect with their audiences and improving the performance of their advertising campaigns in the CTV space. They work together to make advertising smarter and more enjoyable for everyone involved. AI uses sophisticated computer programs to analyze and understand data, while CTV refers to the streaming services that consumers use at home. But what makes them a great match in advertising?
AI uses data to determine which TV ads are most exciting and relevant to certain people, and it can even adjust ads in real time to ensure viewers are always getting the most personalized experience. AI can provide suggestions to viewers based on previously watched content to help them find what they’d enjoy watching next. To sum it up, AI allows for:
- Precise targeting: AI uses data to determine which TV ads are most exciting and relevant to certain people.
- Personalization: AI can adjust ads in real time to ensure viewers are always getting the most personalized experience.
- Effective ad insertion: AI can provide suggestions to viewers based on previously watched content to help them find what they’d enjoy watching next.
CTV facilitates these AI-driven strategies for enhanced user engagement and satisfaction.
The rising popularity of CTV
CTV has become increasingly popular as people change the way they watch TV. Instead of the traditional approach, more viewers are now choosing CTV platforms for their entertainment. One of the main reasons for this shift is that CTV offers greater flexibility and lets viewers watch content at their convenience. The ability to skip ads on many CTV platforms also improves the experience.
CTV offers a great opportunity to interact with your target audience in a more engaging way. CTV allows for highly targeted advertising capabilities so you can reach specific demographics and households with tailored messages. Additionally, CTV provides valuable data insights that enable you to measure campaign effectiveness accurately.
If you haven’t embraced this advertising channel yet, you may be missing out on a growing and engaged audience. Here are three reasons you should add CTV to your advertising strategy.
Global video ad impressions
As a global platform, CTV has the unique ability to reach audiences worldwide. Unlike traditional TV, CTV transcends geographical boundaries and brings marketers a global audience, which makes it an ideal channel for global ad campaigns. No matter your target audience, they’re consuming content on CTV. In fact, a recent study showed that 51% of global video ad impressions came from CTV in 2022.
This abundance of global video ad impressions generates vast amounts of data, which AI can process in real time to help you make data-driven decisions and optimize your campaigns for diverse international audiences. AI can analyze viewer data from various regions, identify audience preferences and behaviors across borders, and tailor ad content accordingly. These data analysis capabilities ensure your ads get in front of the right viewers.
Viewers prefer ad-supported CTV
In 2020, the viewing time of ad-supported CTV surged by 55% while subscription video on demand decreased by 30%, according to TVision Insights. Viewers have a well-established preference for ad-supported CTV due, in part, to cost-effective access to premium content. Viewers are more engaged and less resistant to ads, as AI tailors ad content to viewer preferences and behavior to enhance ad relevance.
AI-powered insights can also aid in viewer retention and help you optimize your CTV campaigns. By accommodating viewers’ preference for ad-supported CTV and harnessing AI to improve the ad experience, you’re more likely to be successful in your marketing efforts.
CTV outpaces mobile and desktop for digital video viewing
eMarketer recently reported that U.S. adults spend 7.5+ hours each day on CTV — more than half of their digital video viewing time. Comparatively, they only spend 37.5% of their viewing time on mobile and 10% on desktops and laptops. These statistics demonstrate that CTV has become the preferred platform for digital video consumption, as viewers enjoy larger screens with superior quality for an immersive experience.
It’s important to note that AI is an essential CTV marketing tool, as it allows for precise targeting and content optimization. By utilizing AI on CTV, you can take advantage of this trend and deliver more engaging and effective campaigns to a growing and engaged audience.
How is AI already being used in CTV?
CTV has been integrated with AI across various facets and has revolutionized the television landscape. Here’s a look at how AI is already shaping the CTV experience:
Generative AI ads
Generative AI ads are taking CTV personalization to a whole new level. These innovative ads are customized versions of the same CTV ad to suit individual viewers. Some AI tools can generate several versions of the same CTV ad — swapping the actor’s clothing and voiceover elements like store locations, local deals, promo codes, and more — and can create up to thousands of personalized iterations in just a few seconds. Such capabilities are a game-changing approach to connecting with your audience.
Next, we dive into the advantages and impact of generative AI ads, and explore their transformative role in CTV advertising.
Contextual ads vs personal data
Generative AI ads use personal data, such as viewing history and demographics, to create highly personalized ad experiences. This sets them apart from contextual ads, which rely solely on the content being viewed. Using AI to harness this data, you can move beyond traditional contextual targeting and ensure your ads connect with viewers on a more individualized level.
Generative AI ads can be used to A/B test
Generative AI ads are not just about personalization; they also open the door to A/B testing. Being able to create several versions of one ad quickly allows you to experiment with various ad elements, such as messaging, visuals, and calls to action, to identify what works best for different segments of your audience and drives the best performance. This flexibility is especially valuable for refining ad campaigns and maximizing their impact.
What’s next for AI-generated ads like this?
The potential of AI-generated ads is exciting. As AI technologies constantly advance, we can expect even more personalized and automated CTV advertising. It’s a good idea to keep up with the latest AI-driven innovations to create more effective ad campaigns in the fast-evolving CTV space. The possibilities are endless, and you’ll likely find the most success when you embrace AI in CTV advertising.
Optimize streaming quality
AI helps viewers enjoy more seamless CTV experiences. By assessing network speed and user preferences, AI optimizes video quality in real time to reduce buffering interruptions. For instance, streaming platforms use AI to adjust video settings based on a user’s connection speed. This guarantees an uninterrupted and enjoyable viewing experience.
Review content for compliance
AI also has a part to play in quality assurance and compliance management. It assesses content alignment with technical parameters and moderates compliance with local age restrictions and privacy regulations. This means AI can identify and filter out unsuitable content to provide a safer and more enjoyable viewing environment for audiences while safeguarding brands from association with undesirable material.
Voice command
AI-powered voice command technology is increasingly used to control CTV viewing. This technology is embedded in streaming devices and smart TVs and allows viewers to interact with their CTV content through voice-activated commands. This personalizes the viewing experience and improves convenience, as it eliminates the need for remote controls.
CTV-integrated voice assistants like Google Assistant, Amazon Alexa, Apple Siri, and Samsung Bixby offer a more human-like interaction with the television, allowing users to give commands and receive tailored responses.
Content recommendations
AI can offer content recommendations that provide viewers a more personalized and engaging experience. Major over-the-top (OTT) services like Netflix, Hulu, and Amazon Prime use AI-driven data analysis to deliver tailored content suggestions to their audiences. By analyzing user habits in detail, AI can recommend content based on factors such as actors, genres, reviews, and countries of origin. This personalized approach helps viewers discover content that matches their preferences and enhances their viewing experience.
Advertising
Programmatic ad buying, driven by AI, automatically matches ad placements to specific audience segments based on behavioral patterns. It improves ad delivery by moving away from gross rating points (GRP) to more intelligent and targeted placements. This benefits marketers by ensuring ads are seen by the right people at the right time. It’s also cost-effective for publishers, as it maximizes the sale of ad spots to suitable buyers.
Automatic content recognition (ACR) technology, which AI powers, is integrated into smart TVs and streaming devices to improve ad relevance. It provides contextual targeting and extends the reach of ads across multiple devices. For example, platforms like Roku use ACR data to display ads to viewers who haven’t seen them on traditional TV. Similarly, Samba TV retargets mobile users based on IP address and aligns their viewing habits with their smart TVs.
Demand-side platforms
CTV advertising relies heavily on demand-side platforms (DSPs) to efficiently manage and optimize ad campaigns. These platforms use machine learning and AI in several important ways:
Using machine learning and AI to address data fragmentation
Data is abundant but fragmented when it comes to CTV advertising. DSPs are flooded with a massive amount of data, including information about households, viewer behavior, and viewing patterns. This data is far too much for manual analysis to handle effectively, which is where AI comes in.
By integrating machine learning algorithms into DSPs, AI can harmonize this fragmented data and provide valuable insights and a holistic view of your audience. AI can process zettabytes of data in real time, which streamlines the decision-making process and empowers you to compete quickly for limited CTV impression opportunities.
Predicting advertising outcomes with AI
AI is quickly changing the way we predict and optimize advertising outcomes. TV buying and optimization platforms are now using AI to improve ad performance. With machine learning, these platforms can anticipate which ad creatives will produce the best results based on various non-creative factors. These include the context of the ad, the audience’s profiles, the time of day it is displayed, and the frequency of the ad display.
By relying on AI to make these predictions, you can make sure your campaigns are highly optimized for success and deliver more relevant, compelling ads to viewers.
Optimizing generative ads
AI is also driving optimization in generative ads. These personalized versions of the same CTV ad can be tailored to suit individual viewers. By utilizing AI-driven analytics, DSPs can process extensive amounts of data in real time and optimize generative ads to ensure they align with viewers’ preferences and behaviors. This level of personalization is a game-changer in CTV advertising that boosts engagement and delivers content that truly resonates with the audience.
Add AI to your CTV strategy today
Integrating AI into your CTV strategy can help you stay competitive and ensure your ad campaigns are effective and engaging.
At Experian, we’re ready to help you elevate your CTV advertising and implement AI as part of your strategy. Our solutions, such as Consumer View and Consumer Sync, provide valuable audience insights, enhance targeting capabilities, and optimize engagement on TV. Plus, our partnerships with leading media marketing solutions can help you achieve greater success through effective advanced television advertising.
As you incorporate AI into your CTV strategy, you’ll be able to make more data-driven decisions, deliver more relevant content, and reach the right audience at the right time. Explore Experian’s TV solutions and empower your CTV advertising with AI today.
Latest posts
Tapad’s TV analytics solutions now include premium national cable inventory– Travelocity asserts industry need, praises partnership — NEW YORK, February 28, 2017 — Tapad, a part of Experian, has announced its partnership with clypd, the leading audience-based sales platform for television advertising. By integrating clypd’s national cable network inventory, the partnership will expand Tapad’s extensive supply of TV inventory to include premium national cable inventory. Tapad is the leading provider of privacy-safe, cross-screen marketing technology solutions and was first-to-market with a device graph. Clypd’s robust sell-side advertising platform was one of the first built exclusively for the television industry, empowering media owners with solutions that deliver workflow automation, data-enhanced decisioning and, overall, maximize TV campaign performance. Through this partnership, Tapad’s Device Graph-powered TV tools will work in tandem with clypd’s sales platform to enable more precise audience engagement for TV ad buys. This will enable marketers to integrate their customer data or third-party digital segments into Tapad’s TV platform and use them to precisely engage their audience across clypd’s industry-leading footprint of national TV inventory. Campaigns are then optimized using Tapad’s graph-powered TV attribution, ensuring ads are aligned with the best context for each brand’s message. “Clypd is a pioneer in building TV marketplaces,” says Marshall Wong, SVP of TV market development at Tapad. “They were quick to recognize the benefits a device graph could bring to TV so that advertisers can activate linear inventory curated for any digital audience.” “Tapad’s TV activation platform increases the efficiency in which marketers can reach their intended audience on traditional linear TV,” says Doug Hurd, co-founder and EVP of business development at clypd. “Their customized, data-driven campaigns launch with precision and really increase the value marketers can extract from linear TV inventory.” "At Travelocity, we are always looking for ways to more efficiently reach our target audiences,” says Ashley Parker, head of brand marketing at Travelocity. “The combination of traditional linear TV and solutions like this offering from Tapad and clypd are bringing both the tools and the supply to make this vision a reality." Contact us today!
By now you’ve all seen the headlines about the burgeoning success of eCommerce compared to the relatively drastic decline in transactions for brick-and-mortar stores during the holiday season. ComScore data showed desktop online sales in the last two months of 2016 rose 12%, and are expected to rise to 16-19% once the mobile commerce numbers are tallied. This steady downward trend for brick-and-mortars has been caused by a variety of factors. Amazon has carved out a desire for free, fast shipping and one-stop shopping. The rise of “fast-fashion” pushes consumers to buy mass-produced and cheap clothing that is easiest to replicate online, and the wide-spread usability of eCommerce and mCommerce sites make the experience of online shopping hassle free. Many organizations have relied on the in-store experience to garner loyalty, so now the question is how to achieve that same experience in the digital realm as foot traffic to stores falls to all-time lows. The answer lies in understanding your users and tailoring content, not just products, within your communications. Experian Cross-Channel Marketing’s studies have shown that by incorporating editorial content into email, overall audience engagement can rise by up to 28% over audiences that don't receive content-driven messages. That’s an increase of over 20% in opens, clicks, and transaction rates! Now to be clear, this is content that is NOT focused on the sale, but rather, how the products, services, or organization can better the user’s life. Let’s dive into this a bit more deeply by talking about the types of content you can weave into your communication strategy: Product Tutorials This is the easiest to execute for those wanting to digress from the discount epidemic plaguing us all. Instead of flaunting a low price, highlight product versatility, create a video showing ease of use or wow the audience by demonstrating transformative effects with before and after photos. Bring the experience to them virtually rather than relying on a showroom to demonstrate the value. The more you draw your users into this experience, the more likely they are to remember your brand. Social Highlights + Celebrity Bloggers Many organizations spend a great amount of time and energy developing a solid social strategy, but fail to bridge the gap between social, email, the website, and even in-store experience. Pull favorite items, the highest rated products, or user-generated content into email to add a personal, more relevant touch to your brand. Also consider bringing any celebrity or blogger content to the forefront of your eNewsletters to achieve the same goal. After Your Purchase Experian has found that Welcome Emails containing a “Thank You” message for those that purchased produced 20x the revenue per email than promotional welcomes. These users are primed to purchase again as they have already shown interest in your organization, so why not incentivize another transaction immediately when appropriate? However, don't forget that the user journey doesn’t stop at the transaction. A huge part of customer satisfaction comes after the credit card has been swiped. Send communications to ensure the user knows how to care for their product, prepare for their service, or simply send a survey after their journey is complete. Including additional options to purchase should be secondary to making sure you get THIS transaction right. How It’s Made Is your product made in America, handcrafted, or come with special care that makes your brand stand out? Are your services or designers top rated for good reason? Give your customers a behind the scenes look to entice them and peak their interest in your brand. A Bigger Purpose Does your brand have a mission that will resonate in the hearts of your consumers? Is there a give-back program you think your audience will care about? If so, bring that bigger purpose to the spotlight and give your consumers a reason to be a part of your community. As your content strategy becomes more advanced, consider profiling your audience to understand their messaging preferences, and then test your content across these cohorts. Not all content will resonate with all customers, but finding the right content marketing mix will surely help your online presence stand out in a time where the digital experience is more important than ever.
Email marketing remains a marketer’s most powerful tool. It not only produces an impressively high ROI, it’s also highly measurable. It’s not uncommon to hear people boast about high deliverability as one of these metrics. However what does that statistic ‘deliverability’ actually mean? Statistics suggest that 1 in every 5 emails fail to land in the inbox [1] which means 20% of opportunities to connect with customers are being missed. Having great deliverability is what every marketer strives for but it is something that has been difficult for people to define. Now it’s not uncommon for words to have different meanings in different countries, the most obvious example being football. Deliverability, like football, has many different meanings No wonder Googling the term “deliverability” leaves you more confused than when you started. Metrics and people’s interpretation of their meaning is one of the biggest reasons for confusion around the topic of deliverability and many marketers mistakenly feel secure in their ability to reach subscribers if they have a high delivery rate. This however, isn’t necessarily the case… Delivered vs ‘accepted’ Often what marketers believe to be a measurement of their deliverability is in reality the proportion of emails that were ‘accepted.’ An email is considered to be delivered if it does not bounce or doesn’t get returned to the mail server stating it was unable to be delivered for a specific reason. Delivery rate is a calculation of mail sent minus the volume that bounced. Deliverability is making sure you are doing what you can to put yourself in the best position to be actually seen by your email subscribers. Not stuck in spam or ignored. Inbox placement is an ongoing battle for email marketers and is effected by many factors such as CAN-SPAM, PECR, CASL compliance, sender reputation, list hygiene, authentication and blacklisting. The number of active subscribers, open and click-through rates also can influence reputation with certain ISPs such as Hotmail or Gmail. Successful deliverability depends on a combination of best practices, including authentication and email reputation. The rules of deliverability go through perpetual change and proven techniques can prevent failures. Many people believe there is a silver bullet or a guarantee that a supplier can provide 99% deliverability rates, in reality sending mail to those who want it is the only truly proven way to get great deliverability. Deliverability is a critical element of email marketing and something that all marketers should be considering. Want to learn more about deliverability? Check out our ebook "You’ve got mail! Spotlight on email deliverability," where we offer a proactive strategy for building brand loyality and improving ROI through email deliverability and optimized email marketing programs. Read related posts about email marketing and deliverability here. [1] Return path Deliverability Benchmark Report http://returnpath.com/wp-content/uploads/2015/10/2015-Deliverability-Benchmark-Report.pdf Tom Corbett is an expert on Email Deliverability