Streaming platforms and broadcasters are introducing artificial intelligence (AI)-powered tools to make television commercials cheaper and more accessible for small and midsize businesses, echoing the models of Meta and Google, reported WSJ. Companies such as Comcast, Roku and Britain’s Channel 4 are building self-service platforms and creative automation services in a bid to expand TV’s advertiser base and counter declining traditional ad sales.
Cutting costs, widening access
Comcast’s digital sales arm Universal Ads is preparing to launch an AI Video Generator, developed with startup Creatify, that can automate ad production. “I don’t think people understand how many more TV ads are about to be created,” James Borow, vice president of product and engineering for Universal Ads, told WSJ. Channel 4 has also introduced a generative AI service that it says can reduce the cost of a 30-second commercial by about 90%. “This is very much about how we can democratize TV,” Samantha Hicks, Channel 4’s head of advertiser strategy, told WSJ.
Roku, meanwhile, has developed Ads Manager to allow small advertisers to buy campaigns across its devices and services. The company uses AI to enhance video quality and collaborates with startup Spaceback to turn social posts into commercials.
Streaming ad growth vs TV decline
The shift comes as broadcast and cable ad spending in the U.S. is expected to fall 15.5% this year to $49.9 billion, while connected-TV ad spending is projected to grow 13.2% to $31.9 billion, according to eMarketer. By 2028, streaming ads are expected to surpass traditional television.
But performance remains a key concern. “Focusing on that versus campaign performance is more of a shiny object than real performance for advertisers, because they can get generative video anywhere and everywhere right now,” Peter Hamilton, head of ad innovation at Roku, told WSJ. Comcast executives said they are working with AI tools that can connect ad campaigns directly to sales.
Some remain sceptical about quality. “You can create an ad. You can put it in front of folks. But it’s like having all of the ingredients to a soufflé. I’m not a world-class chef. I’m not going to be able to create that soufflé,” Tony Marlow, chief marketing officer for LG Ad Solutions, told WSJ.