Generative AI has not yet convinced connected TV (CTV) advertisers.
Ad buyers are still hesitant to give computers complete control over their media purchases, even though some brands are experimenting with AI-powered creative and optimization tools—especially for well-known, nationwide campaigns.
Ad execs discussed how AI fits into their processes and the reasons behind the continued mistrust among CTV buyers during a roundtable discussion on Thursday at CTV Connect in New York City.
READ MORE: Are YouTube And CTV Brand Safety Still Important To Marketers?
According to Harry Browne, vice president of TV, audio, and display innovation at Tinuiti, “clients have varying degrees of comfort with AI.” “AI-generated banner ads are not subject to the same scrutiny as a CTV ad that airs nationally. It must appear good when it’s the largest screen in front of millions of people.
The hesitancy is mostly due to worries about the risk involved and the public’s reaction to recent AI-generated advertisements. Ads that felt too fake or off-brand were quickly criticized by viewers, which led to unfavorable social media responses.
Coca-Cola’s 2024 holiday ad, for instance, used gen AI to recreate a vintage commercial. Critics reacted quickly, claiming that the advertisement lacked enthusiasm and warmth.
READ MORE: Taking The Friction Out Of CTV’s Content Discovery
Conversely, ad buyers are concerned about consumer perception, brand safety, and quality control, particularly with premium inventory. Because CTV advertisements are so visible and closely examined, marketers are less inclined to try completely AI-generated content than display ads, where little flaws could go undiscovered.
CTV transparency is still a battleground between marketers and streamers, even after a slow upfront season.
CTV Purchasers Continue to Have Trouble Understanding the Performance of Their Ads
According to a 2024 study by the World Federation of Advertisers, 80% of the biggest businesses in the world, with a combined yearly marketing budget of $102 billion, are worried about how their agencies employ gen AI because of these unknowns.
“We wouldn’t try—or even suggest to a client—using generative AI for fully AI-generated TV ads given the skepticism among consumers,” Browne stated.
CTV is still a separate animal, even though AI-driven optimization in digital and display ads has been made possible by walled garden media buying platforms from firms like Google and Meta. Full automation is a dangerous investment because Gen AI is yet ill-prepared to provide the strategic oversight required to oversee large-scale media buys, especially given its tendency to hallucinate.
When should we allow AI to make decisions? The answer is no for CTV, according to Brian Schmid, vice president of digital and e-commerce at Brooks Brothers. “It’s unthinkable for a brand to use AI to create an entire TV ad. I am the one who reports to finance, therefore I have no idea how the entire media budget would be used if I turned it over.
Step into the ultimate entertainment experience with Radiant TV! Movies, TV series, exclusive interviews, live events, music, and more—stream anytime, anywhere. Download now on various devices including iPhone, Android, smart TVs, Apple TV, Fire Stick, and more!
