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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.
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Suppose you're watching your favorite TV show, and an ad suddenly catches your attention. It urges you to take immediate action, whether to call a number, visit a website, or text a keyword like ‘DETAILS’ to a specific number for more information. This is direct response television (DRTV), a powerful form of advertising available on all TV types — including live, cable, and streaming — that directly connects brands with consumers to drive immediate engagement and measurable results. The goal of DRTV marketing is simple: convert viewers into customers quickly and measurably by asking them to do something in real time. Every DRTV ad is carefully designed to drive quick conversions with a clear, direct path from interest to action. This makes it an essential tool for marketers who need to measure their return on investment (ROI) for TV and see instantaneous results. 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Hybrid ads with digital integration Many modern DRTV campaigns blend traditional TV with digital tools, like QR codes, social media hashtags, or links to custom landing pages. These hybrid ads meet viewers wherever they are. A fitness program might air a short-form ad with a QR code linking to their free app trial, making it easy for viewers to instantly engage. Success tips for DRTV advertising Creating a successful direct response TV campaign centers on messaging that resonates with the right audience, inspires action, and delivers measurable results. Here are some essential tips for a winning DRTV strategy. Strong CTA Every DRTV ad should include a compelling, straightforward CTA that motivates viewers to act immediately. 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In-market car buyers: Reach consumers actively searching for their next vehicle, which is ideal for driving sales. Holiday shoppers: Engage gift-givers, deal-seekers, and travelers during peak shopping seasons. New TV audiences released in August 2024 In addition to these, our August 2024 release introduced several updates that further refine Experian’s targeting capabilities. Some of the audience updates in this release included: New retail transaction audiences: These segments offer insights into categories like children’s products, parenting, hobbies and crafts, science and nature, and sports and fitness. With high spending and frequent purchase behaviors, these audiences provide a deeper understanding of consumer preferences. Notable segments include: Sports and fitness high spenders Children’s product high spenders Science and nature high spenders Updated TV audiences: New and refreshed TV segments now reflect the viewing habits of today’s consumers for accurate insights and targeting. Examples of newly added segments include: Free and paid ad-supported streaming TV subscribers Satellite service subscribers Cable and streaming TV service subscribers With these advanced targeting capabilities, your DRTV campaigns can be more effective and resonant with viewers most likely to respond for maximum ROI and engagement. Effective planning A strong DRTV campaign starts with defining your objectives, budgeting effectively, and identifying the right media mix. Understanding where your audience spends their time — prime-time TV or niche cable channels — will get you the most value from your DRTV investment. Real-time tracking Tracking your DRTV campaign’s performance in real time is critical for success. Tools that provide immediate insights into viewer responses, website visits, or call volumes allow you to identify what’s working and pivot quickly if needed. Measuring success Measuring success against key performance indicators (KPIs) like conversion rates, ROI, or cost-per-acquisition (CPA) is an excellent way to know if your DRTV campaign is delivering results. Experian’s advanced data solutions make tracking and analyzing campaign performance easier, so you can make data-informed decisions and deliver precise results to stakeholders. Continuous optimization DRTV marketing is an ongoing effort. Use the insights from real-time tracking and performance measurement to refine your strategy. Optimization keeps your campaign relevant and effective, whether you need to tweak your CTA, adjust your audience targeting, or test new creative formats. How DRTV relates to advanced TV and connected TV While DRTV has historically focused on immediate viewer actions via traditional linear TV, it’s found new relevance within advanced TV and connected TV (CTV) ecosystems. These modern formats expand the measurable, action-driven qualities of DRTV while incorporating the precise targeting and personalized storytelling made possible by digital technologies. DRTV and advanced TV Advanced TV enhances DRTV by enabling addressable advertising, which helps marketers deliver ads to specific households based on behavioral or demographic data. For instance, using tools like Experian’s Graph, advertisers can integrate data sets across multiple sources to refine audience segmentation and tailor messages to individual households. Advanced TV also supports cross-channel consistency to provide a unified customer experience whether the viewer engages with linear TV, streaming services, or other devices. Additionally, programmatic ad buying plays a role in automating the ad-buying process. This helps advertisers optimize their bids and placements and get DRTV campaigns in front of the right audience at the right time, which maximizes cost-efficiency across both traditional and digital channels. DRTV and CTV CTV has a high rate of logged-in, authenticated viewers and provides a lot of helpful first-party data. This allows for hyper-precise audience targeting, cross-device attribution, and an ability to link ad exposure to conversions — even when purchases occur on non-CTV devices. Universal IDs like UID2 further strengthen these capabilities by creating consistent and privacy-respecting user identities across platforms. Experian’s TV partnerships Through partnerships with leading CTV players like Madhive, Samsung, Disney/Hulu, and others, Experian’s identity solutions integrate seamlessly to support well-timed, personalized ads across major streaming platforms. These integrations, powered by our Digital and Offline Graphs, offer a complete view of audiences to enable more controlled, effective activation across mediums, including free ad-supported streaming television (FAST) channels. Using Experian’s advanced data and identity tools, advertisers can tap into the full potential of DRTV strategies within advanced TV and CTV to make campaigns more actionable, efficient, and impactful. The future of DRTV So, what is DRTV going to look like in the future? With the integration of digital and television platforms, DRTV is becoming more targeted, interactive, and personalized. This shift creates new opportunities for advertisers to drive conversions. Here are some key advancements that will continue to shape the future of DRTV: Addressable TV: Advertisers can deliver targeted ads to specific households based on demographic and behavioral data. It uses data from smart TVs, streaming devices, and third-party data providers to enable highly relevant ads based on the interests of individual viewers. Interactive TV ads: Interactive TV ads enable viewers to engage directly with the content through their remote control or mobile devices. Users can click on a product for more information or make purchases without leaving the TV screen and immediately convert. Authenticated audiences: With CTV and AI technology, advertisers can use first-party data from authenticated users to improve targeting, measurement, and campaign performance. Advertisers can create a more cohesive and personalized experience by linking viewers across multiple devices, which improves ad effectiveness and attribution. Branded apps with saved information: Branded apps that store payment and personal information streamline the direct response process. These apps reduce purchase journey friction and allow quicker conversions, as viewers can complete transactions with fewer steps. QR codes replacing URLs: QR codes are becoming a popular alternative to traditional URLs in DRTV ads. These codes provide a quick, convenient way for viewers to visit a website, access a product page, or act on a CTA simply by scanning the code with their phone. Better targeting algorithms: Advancements in targeting algorithms allow advertisers to serve more personalized and relevant ads. These algorithms help ads reach the right audience at the right time, which can increase engagement and conversion rates. These innovations offer advertisers more tools to connect with audiences in a personalized, interactive, and measurable way. Connect with Experian’s TV experts Experian can help you achieve the full potential of your direct response TV advertising efforts with our advanced tools, precise audience targeting, and strong industry partnerships. We help brands create impactful DRTV campaigns that drive real-time engagement, audience connection, and measurable results, whether for traditional, advanced, or CTV. Reach out today to work with us on your DRTV efforts and achieve better ROI, or explore how our expertise can transform your TV advertising campaigns. Connect with our TV experts Contact us Latest posts