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
In case you missed it, Facebook recently announced that it would begin supporting animated GIF images and GIF-fanatics everywhere went: The decision by Facebook, which is rather late to the GIF party given that animated GIFs are already commonly used on sites like Tumblr, Reddit, Twitter, Imgur, BuzzFeed and more, virtually guarantees that animated GIFs will soon be commonplace (like it or not) for nearly everyone. It may even give Facebook an opportunity to re-engage Millennials who already frequently communicate using stickers, emoji, emoticons and animated GIFs. To make use of the new feature right away, Facebook users will need to paste a link to an existing GIF into their status update box. Users who have the “auto-play” setting activated will see GIFs posted by their Facebook friends looping through the animation automatically as they scroll through their news feed or a friend’s timeline. For the time being, at least, users are not allowed to upload GIFs to Facebook. While Facebook has not yet allowed animated GIFs to be used by Page operators, there’s still a huge opportunity for marketers in this move. That’s because marketers can still create their own clever animated GIFs hosted away from Facebook either on their own website or through partnerships with sites like Giphy — which already has a Facebook Messenger add-on. They can then encourage consumers to say what’s on their mind — via Facebook, text/chat, Twitter, etc. — using their branded animated GIFs instead of words. Subway, for instance, has a set of GIFs in Giphy that allow consumers to say they’re hungry by sending GIFs of animated sub sandwiches and people eating them to others. And Experian Marketing Services found that users of animated GIFs are hungry for branded content. In fact, they’re already seeking out branded GIFs to share in this way. Media and entertainment brands, of course, have a natural play in the animated GIF space since they already have content developed. They merely need to convert it into a few seconds of animation and fans of the show, movie, game, musician, etc. will take it and run. But even for marketers who don’t have existing content, animated GIFs present an option for producing rich (if not always the highest quality), engaging visual content that’s more affordable than video but a step up from fixed images. They also present on-the-go consumers who are increasingly looking for shorter more “snackable” content with a quick way to engage with a brand when they don’t have the time or interest in watching an actual video. To help marketers test the waters and create relevant GIFs, we looked at online search variations of “GIF” during the 12 weeks ending May 30, 2015 using our Hitwise® online intelligence platform. Some of the top variations and a few popular GIFs in each category are below. Funny GIFs: Animated GIFs are often used to put a smile on people’s face, so it’s no wonder that “funny” GIFs are the most commonly sought out. Babies and cats feature prominently in this category. Reaction GIFs: Among users, animated GIFs are a natural way to react to something a friend has said or shared. Reactions can run the gamut of emotions from “meh” to “oh no you didn’t.” Happy Birthday GIFs: Want your Happy Birthday wishes to be memorable and unique. Don’t say it with words; say it with an animated GIF! Does your brand play a role in helping people celebrate their birthday? Then why not help people say it as well. Crying GIFs: That teary emoji can only express so much emotional depth. Show you know how someone really feels with a crying animated GIF instead. Mind blown GIFs: Saying “OMG” is so yesterday. Why would anyone just tell someone they blew your mind when they can show them? No wonder “mind blown” animated GIFs are among the most commonly sought out. Source: Experian Marketing Services It’s still early days for animated GIFs in Facebook, but the opening of the door by the social media giant could prove to be the tipping point in the mass adoption of this medium that lies somewhere between an image and a video. In fact, animated GIFs may eventually prove so popular that consumers may come to expect and prefer them over non-animated content. For more information about how Experian Marketing Services can provide marketers with insights into the types of GIFs consumers are looking for, click here.
As part of our ongoing series which focuses on consumer and marketing trends around major holidays throughout the year, we’ve just released the Father’s Day Hot Sheet. Father’s Day gift-related searches Now that Mother’s Day has come and gone, consumers will be shifting their focus to dad. According to Experian Marketing Services’ Hitwise® online intelligence tool, searches for “Father’s Day” typically start to pop up on Mother’s Day. And searches for “Father’s Day gifts” tend to focus on affordable gift ideas that are personalized, unique and often handmade. In fact, two of the top variations of Father’s Day gift-related searches from 2014 were for “DIY” and “homemade” gifts. While many shoppers wanted the “best” gift for dad, others simply wanted something “cheap” or “last minute.” Finding a gift that dad will appreciate means looking for something that is personalized to him. As such, searches for Father’s Day gifts often contain additional information about the dad or, in many cases, grandpa. Examples commonly used in 2014 were “Christian dad,” “new dads,” “outdoorsy dads” as well dads who are wine or BBQ lovers. While many gift searches include information about the intended recipient, others mention details about the gift-giver or their relationship to the father. Among last year’s variations that included such details, nearly a third focused on gifts that were intended to be given by a “daughter.” Genderless references, such as “kids” or “children” were almost as common. Interestingly, fewer than ten percent were for gifts to be given by a “son.” About a fifth of searches included details about the age of the gift-giver (e.g.: “baby,” “toddler” or “first grader”), while others specified that the gift was to be given by the dad’s wife or girlfriend. Go, go, gadget dad! Gadgets and gizmos are always popular gifts for the techie dad. In fact, during the week immediately preceding Father’s Day last year, visits to Electronics and Appliance websites were up a relative eight percent from two weeks prior. Visits subsequently tapered off the following week. An analysis of search terms driving traffic to the Hitwise Electronics and Appliance industry the week ending June 14 versus May 13, 2014 also sheds some light on the specific items that Father’s Day gift-givers were likely to have been seeking out. Two GPS systems (“Magellan GPS” and “Tom Tom”) were among the top terms that grew search share in the weeks leading into Father’s Day last year. Likewise, “GoPro” appeared in two separate fast growing search terms. Gadgets like these and others listed in the adjacent table may be big gifts for the gadget-loving dad again this year. Gone fishin’ Fishing is a timeless family pastime enjoyed by millions of Americans. According to Experian Marketing Services’ Simmons® National Consumer Study, 28 percent of dads and 26 percent of kids ages six to 17 went fishing last year. As such, it’s no surprise that online searches related to fishing spike over Father’s Day weekend. On the Saturday before Father’s Day in 2014, searches including “fishing” were a relative 28 percent higher than they were the Saturday prior and 64 percent higher than they were the following Saturday. To better understand what kids and dads were seeking out for their fishing plans, Experian Marketing Services conducted an analysis comparing variations of “fishing” searches immediately before Father’s Day last year to those performed two weeks prior. It turns out the word “techniques” was almost 8.6 times more likely to appear in fishing-related searches just before Father’s Day than it was two weeks earlier and “tips” was four times more likely to be used. Likewise, “licenses” was used 2.3 times more frequently, which along with the higher use of “techniques” and “tips” is evidence that many would-be fishermen and women are occasional participants at best. The fact that “charter” and “cabins” were used at higher rates however suggests that other children and/or dads had something in mind beyond a lazy (and likely more affordable) afternoon at the local fishing hole. Gift items, too, like “reels,” “gear” and “tackle” were among those most disproportionately used in searches heading into Father’s Day.
Welcome! Who doesn’t like a warm welcome? Whether your customer is walking into your store or just signed up on your website to receive communications from you, she expects a warm reception. It’s important to make that first impression count. A welcome series helps the conversation open up between the customer and your brand. It sets expectations on the types and cadence of content the customer will receive. Welcome emails also garner 86 percent higher open rates than regular promotional mailings – not too shabby! In a recent webinar, Saks Fifth Avenue shared that they are constantly testing new and current programs to optimize the customer experience. As a result, they discovered that switching from batch-sending welcome emails to sending welcome messages in real time increased open, click and redemption rates significantly. Here’s an example of their welcome series: Saks’ results are consistent with Experian Marketing Services’ welcome email findings which indicate that emails triggered in real time receive up to 10 times the transaction rates and revenue per email vs. those that are batched. A welcome series has also been shown to increase retention by educating customers on new ways to use products and services they’ve purchased from your brand. These emails also can remind customers of the benefits they’ll reap from enrolling in your loyalty programs or credit card. … and welcome back Even if a customer has been welcomed and has interacted with your programs, a day may come when the customer goes silent. Reactivation campaigns are an effective way to get them to re-engage. Naturally, it’s important to target your dormant customers in a variety of channels so you can reach them more effectively. Maybe you’re wondering why I jumped from the warmth of a welcome series right into reality of needing a reactivation campaign. The reason? Marketers need to understand where a customer is in their lifecycle and come full circle with customers if they have parted ways. Marketers can pique the interest of a returning customer by telling them what’s new and reintroducing them to their brand. Carnival® Cruise Lines, for example, sends a welcome-back email that features the newest social networks, offers and deals its customers can take advantage of immediately. At the end of the day, customers expect to receive relevant and engaging messages throughout their entire relationship with a brand. Customer life cycle programs deliver just that. If you’re interested in learning more about welcome campaigns, waitlist/back-in-stock programs and other remarketing strategies, check out our webcast,