AI Powers Up CTV: Personalised Viewing and Targeted Ads in 2024

Get ready for a transformative year in television advertising.? While 2023 saw excitement around CTV (Connected TV), 2024 will be the year FAST (Free Ad-Supported Streaming TV) truly explodes. Here's why:

The Three Stages of Streaming Takeover

Think of the transition from cable to streaming in three phases:

• Stage 1: Content Goes Digital (Complete) - Content is available on-demand across devices like mobiles, tablets, and smart TVs. We saw an explosion of SVOD (Subscription Video on Demand) and AVOD (Ad-Supported Video on Demand) options, followed by a surge in FAST channels.
• Stage 2: Monetisation Takes Center Stage (Ongoing) - 2023 witnessed a shift towards better monetisation. Costly, ad-free subscriptions faced resistance with rising interest rates. Publishers like Netflix and Disney introduced ad-supported tiers to offset potential subscription losses. Consumers embraced these options, paving the way for even faster growth in ad-supported streaming in 2024.
• Stage 3: Viewership Transformation Begins (2024 and Beyond) - This is where the biggest changes happen. While content is readily available and monetization is improving, most households only watch a couple of FAST channels monthly, compared to the average of 17 cable channels watched in its prime. Additionally, a significant portion of the population hasn't dipped their toes into FAST yet.

FAST Drives Viewership Growth

The surging interest in free, ad-supported options and the familiarity with "always-on" digital channels will propel FAST to become the primary driver of streaming viewership growth.? AI will play a crucial role in content discovery. Imagine AI monitoring trending content and directing viewers to channels experiencing spikes, like a weather channel during a storm.? Additionally, AI-powered content creation (GenAI) will allow streamers to personalise ad experiences, leading to better conversion rates and return on ad spend (ROAS).

2023 was just the beginning for CTV. With surging viewership and the power of AI, 2024 will be the year where FAST takes the center stage, propelling CTV advertising into a whole new era.

The Rise of Performance-Driven CTV Advertising

The rise of FAST will fuel the growth of performance-driven CTV advertising. Advancements in AI and marketing solutions will personalise the CTV experience.? This, in turn, will enable streamers and publishers to accurately measure campaign effectiveness, transforming marketing efforts from a cost center to a revenue driver.

Unlocking Viewership with AI

With thousands of FAST channels, publishers need innovative ways to reach new audiences. Growing viewership and AI will be the answer.? By analysing viewing data, AI can recommend what content viewers might enjoy, even if they're unaware of it.? AI can identify patterns invisible to humans, like using mood or recency to suggest content.? For example, if a viewer is switching channels, they might be receptive to a new recommendation, or if they're watching a dark show, AI can suggest similar content.

Cross-Device Targeting: Mobile Meets CTV

CTV advertising's transformation includes cross-device targeting, particularly between CTV and mobile.? Imagine targeting viewers on their phones while they watch TV – those viewers are likely less engaged with the TV program. This high-impact approach, especially when combined with viewing history on mobile devices, can be incredibly effective.

Find more in this Video : Courtesy : IAMAI - The Future of Advertising : The Convergence of CTV, Martech (Special Shoutout to CTV Industry leader - Prabhvir Sahmey )

The Future is a CTV Flywheel

As consumer adoption of ad-supported CTV increases, publishers gain valuable viewing data.? This data allows them to predict preferences, build audiences more effectively, and attract more viewers.? This virtuous cycle – the CTV flywheel – generates more ad dollars for publishers, delivers relevant content for viewers, and connects brands with highly targeted audiences.

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Ruhbir Singh