Television
Report: The role of AI in TV ad strategies
2024-11-04
In the ever-evolving advertising landscape, the latest TV Key Facts report from RTL AdAlliance, the international sales house of RTL Group, sheds light on the remarkable synergies between technology and human creativity. Despite the growing influence of digital platforms, television remains a powerful force, seamlessly adapting to new technologies while preserving its unique ability to captivate audiences. In this AI-powered age, TV is proving its resilience, showcasing its value not only as a standalone medium but also as an integral part of a comprehensive 'total video' approach.
Harnessing the Power of Emotion and Precision
The Enduring Appeal of Television
Television's enduring appeal lies in its unparalleled ability to forge strong emotional connections with audiences. Through local content such as sports, reality competition shows, and news, European viewers develop a deep affinity for the medium. Emotionally-driven ads have a higher recall than those focused solely on product features or short-term calls to action, as they 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 favor of digital platforms, even though econometric models demonstrate its higher contribution to sales.The Rise of Broadcaster VoD and Connected TV
Despite the growing influence of digital platforms, 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. Furthermore, 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. 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.Harnessing the Power of AI
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.In content production, AI is already revolutionizing 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.AI is also enhancing the BVOD platforms' reach and accessibility. AI-powered search engines on platforms such as M6+ will take personalized viewing experiences to the next level, ensuring that the right content reaches the right audiences more efficiently.The fusion of AI and creativity is transforming ad development, especially through innovations like Addressable TV 2.0. By harnessing AI, advertisers can now tailor personalized messages to specific audiences, driving engagement, optimizing ad performance, and reducing time and cost.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.Furthermore, AI-powered tools offer more precise measurement, providing advertisers deeper insights into audience behaviors and ad effectiveness, allowing for more informed decision-making.The Future of TV Advertising: A Harmonious Blend of Emotion and Precision
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 of RTL AdAlliance, eloquently captures this vision: "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."