Advanced Television

Study: 49% believe they can identify AI ads

June 14, 2024

Forty-nine per cent of consumers are confident they can distinguish ads generated by AI versus traditional methods, with nearly half (49 per cent) stating they do not care whether an ad was made using AI or traditional methods as long as it looks authentic. That’s according to insights released today by LG Ad Solutions, to determine consumer perceptions and preferences towards the use of AI in CTV advertising.

“Consumer appreciation and acceptance of advanced technology is fuelling demand for richer ad experiences. Our data highlights that AI is already becoming a key driver in CTV’s growth with respondents noticing personalised advertising and enhanced brand perception. That said, it is crucial for advertisers to understand the evolving advancements of the technology and consumer concerns around regulation, especially with the upcoming General Election,” commented Ed Wale, VP International at LG Ad Solutions.

The generative AI industry is experiencing rapid growth, with over 1,400 startups currently active, 55 of which specialise in creating advertising creative; in the UK last year startups utilising AI raised $4.5 billion in investment. This technological advancement allows brands to develop personalised global ad campaigns at the click of a button. As a result, it is crucial for brands to understand how consumers will perceive these innovative ad strategies to maximise their impact and effectiveness.

The survey, which connected with over 500 US CTV owners, also revealed:

  • Consumers think personalisation is performing: 74 per cent of respondents stated they have noticed advertisements they believe are specifically tailored to them. And while this might serve as a clear indicator that personalised advertising is generally recognised by the public, consumers aged 55 and older state they don’t report noticing these types of ads as much – signalling a generational divide.

  • AI = innovation when it comes to brand perception: 38 per cent of consumers agree that brands using generated AI ads enhance their perception of the brand’s innovation, with more than half (51 per cent) of consumers ages 35-54 aligning with the statement. Separately, 31 per cent are neutral about the use of AI in advertisements, stating it doesn’t sway their opinion.

  • But regulation is a real concern: Despite 30 per cent of consumers stating they would like ads more if they were personalised with AI, 80 per cent believe there should be regulations on the use of AI in specific contexts like political advertising for the upcoming 2024 election.

“Brands have traditionally created singular global campaigns to maximise scale and reach, but now with AI, they can deliver highly personalised global campaigns using insights. For example, one brand at LG Ads used local weather conditions to determine the most relevant product to advertise, without needing separate campaigns and increased resources,” added Tony Marlow, CMO at LG Ad Solutions. “The sky’s the limit with AI, and we are excited to see what opportunities it opens for CTV advertising.”

Categories: Advertising, AI, Articles, Connected TV, Consumer Behaviour, Research