AI and Ad-based Video Viewing

Advancements in technology, and specifically, leveraging artificial intelligence, can be helpful in addressing these pain points consumers have with ad viewing and optimizing the ad experience as a whole.

In fact, AI has long been a part of the streaming entertainment user experience through uses such as content recommendations and other personalized interactions, but AI can also be used to optimize how advertisements are presented to viewers. Parks Associates data finds that when viewers watch ads that closely align with the content they are watching, it enhances the overall viewing experience and also raises their interest in T-commerce. This interest not only helps drive viewer engagement higher, but also opens the door to impulse purchases and seamless shopping experiences.

The convergence of AI-driven advertising and T-commerce is just one area where AI is a powerful influence within the streaming industry…. And it still has a lot of potential to improve and evolve over time.

One area where AI could be especially useful is with ad relevancy.

Parks Associates research finds that ad relevancy strongly correlates with interest in T-commerce, suggesting that those who perceive ads as relevant to themselves and the content they are watching also agree that the ability to directly purchase products and services seen advertised on TV would be interesting.

Companies that leverage data to enhance ad-targeting algorithms to deliver more relevant ads to consumers will help to not only improve the overall ad-based viewing experience, but also interest in T-commerce (and revenue).

Here is a quick recap of the streaming market according to Parks Associates research:

• Average household spend on OTT has declined, likely because use of free ad-based streaming use is growing.
• The top driver of ad-based OTT service use is the free price tag.
• NPS for ad-free service tiers are noticeably higher than ad-based service tiers.
• Consumers do not mind watching ads, but dislike it when the same ads repeat, interruptions are frequent, and ad breaks neglect to actually show ads.
• AI can help optimize the ad experience for viewers by addressing these pain points as well as propel newer technology such as T-commerce for an additional source of revenue.

This is an excerpt from today's virtual session hosted as part of Parks Associates 7th annual Future of Video event.

Future of Video brings together senior leaders to share insights on new trends in the video and connected entertainment industries, with insights on consumer adoption, churn, and spending. The event provides insight into successful OTT strategy deployments, challenges for pay-TV providers, the role of connected CE in the growth of video viewing, new content formats, and the overall impact to the video market.

Future of Video sponsors are Adeia, Bango: Subscriptions, bundling & payments , FPT Software , JWP (JW Player) , and SymphonyAI Media.

The seventh annual in-person conference will be held November 19-21 at the Marina del Rey Marriott, Marina del Rey, California, and addresses new strategies for streaming, internet, and mobile providers to deliver high-quality video services, and retain and attract new video subscribers.

Ask Ashton Gambrell how you can get involved this year and 2025.