Report: The role of AI in TV ad strategies
November 4, 2024
The latest TV Key Facts report from RTL AdAlliance, the international sales house of RTL Group, highlights the synergies between technology and human creativity in the evolving advertising landscape. Despite the growing influence of digital platforms, television maintains its strength, adapting to new technologies while preserving its unique ability to connect with audiences. In this AI-powered age of advertising, TV is proving its resilience, showing its value not only as a standalone medium but also as part of an integrated ‘total video’ approach.
Television continues to captivate European audiences, with daily viewing times averaging 3 hours and 13 minutes, compared to 2 hours and 30 minutes in the US in 2023. This steady consumption is complemented by the rise of Broadcaster VoD, which has seen a 10-percentage-point increase in usage among Europeans over the past three years. This trend is mirrored in ad spend, with annual ad growth projections of 2 per cent to 4 per cent (2024–2029) when accounting for digital extensions, according to GroupM. In addition, Connected TV (CTV) has experienced a 23.5-per-cent growth, further solidifying the role of video content within the broader media ecosystem, according to IAB Europe.
The double-edged power of human emotions
Television’s enduring appeal lies in its ability to forge strong emotional connections through local content, such as sports, reality competition shows and news, which are particularly cherished by European audiences. Emotionally-driven ads have a higher recall than those focused solely on product features or short-term calls to action; these are the ads that build lasting brand connections. However, relying solely on gut feelings in planning can lead advertising professionals to underestimate TV’s effectiveness in media strategies. Research from Thinkbox reveals this phenomenon, where TV’s effectiveness is often underrepresented in favour of digital platforms, even though econometric models show its higher contribution to sales.
AI’s role in elevating TV advertising across the value chain
AI offers a powerful solution to harness the full potential of television at every stage of the advertising journey. From content creation to media planning, AI can augment human creativity and decision-making, making TV even more effective as part of a modern advertising strategy:
- Content production: AI is already revolutionising the creation of media content, enabling more efficient production workflows. Channels such as NTV are exploring AI-generated backgrounds and assets, paving the way for faster and more flexible content creation.
- Content distribution: AI is enhancing the BVOD platforms’ reach and accessibility. AI-powered search engines on platforms such as M6+ will take personalised viewing experiences to the next level, ensuring that the right content reaches the right audiences more efficiently.
- Ad creation: The fusion of AI and creativity is transforming ad development, especially through innovations like Addressable TV 2.0. By harnessing AI, advertisers can now to tailor personalised messages to specific audiences, driving engagement, optimising ad performance as well as reducing time and cost.
- Media planning: AI-driven ad tech, particularly those developed in Europe, are reshaping the way media plans are created. By providing a data-driven approach, AI can ensure TV & online video receive appropriate allocation based on real-time data of where the audience is.
- Measurement: AI-powered tools offer more precise measurement, providing advertisers deeper insights into audience behaviours and ad effectiveness, allowing for more informed decision-making.
As the advertising industry continues to adapt to technological advancements, AI presents an opportunity to unlock the full potential of television. By combining the emotional power of TV with the precision of AI, advertisers can create more effective campaigns, ensuring that TV remains a critical part of the advertising mix in the years to come.
Aurélie Brunet de Courssou, Marketing Director, RTL AdAlliance, commented: “At RTL AdAlliance, we envision a future where TV is 100 per cent digital and ad served. Using technology, we’re actively working towards this goal. Our ‘TV Key Facts: Where tech meets human / Where humans meet tech’ sheds light on the ideal mixture of premium content and skillful advertising techniques – combining the power of emotional content with cutting-edge technology and data-driven insights for smarter media planning.“