By Jay Ganesan
Broadcasting as an industry is undergoing a major transformation, driven by the rapid rise of viewership moving to Connected TV (CTV). This provides new opportunities for broadcasters on integration of artificial intelligence (AI) for differentiated experiences to their audiences’ through personalised and immersive viewing experience with tailored content and dynamic advertising strategies. Technology is reshaping how advertisers engage with audiences, making CTV a powerful tool for customised, interactive advertising that resonates with viewers. This evolution signals a new era in broadcasting, where engagement, content delivery, and advertising are more interconnected than ever.
CTV platforms offer a wide array of features that enhance viewer engagement across diverse content types, including live events, series, news, and entertainment. Interactive menus, real-time content suggestions, and personalised playlists are transforming the way viewers interact with their favourite programmes. AI algorithms analyse viewer preferences and behaviour, enabling broadcasters to offer highly relevant recommendations that keep audiences engaged for longer. Research shows that 70% of CTV users prefer personalised recommendations when watching content—a trend that continues to grow with advancements in AI.
AI is also revolutionising advertising on CTV, allowing brands to deliver highly targeted and relevant ads. By analysing viewer data as well as data about the video, AI can determine not just the most suitable ads for each user but also come up with new formats of ads based on the content, ensuring advertisements are not only viewed but actively engaged with. According to eMarketer, targeted ads on CTV platforms achieve a 50% higher engagement rate compared to traditional TV ads. This data-driven approach is transforming how advertisers reach their audiences, making ad campaigns more effective by focusing on relevance and user preferences.
Large screen viewing in general attracts higher engagement with the advertisements given the span of attention as well as the living room family experience unlike streaming on smaller form factor devices. This combines with the fact that CTV platforms offer superior video and audio quality than traditional broadcasting platforms offers the best of both worlds, an unmatched user engagement on a large screen with all benefits of an individual stream being delivered to the viewer. With the ability to stream in 4K resolution and support high-definition sound, combined with reduced latency thanks to advancements in streaming technology, brings in more premium live broadcasts—whether news, events, or entertainment to streaming thereby increasing the possibilities of new ad formats and monetisation opportunities.
For advertisers, the shift to CTV presents new opportunities for engagement. Interactive ad formats, such as clickable ads and in-stream product placements, offer a more engaging experience while allowing advertisers to gather real-time data on ad performance. Advertisers can track campaign effectiveness immediately and adjust strategies based on audience feedback. Studies suggest CTV advertising delivers a 25% higher return on investment (ROI) compared to traditional TV advertising, largely due to precise targeting and advanced analytics.
The integration of CTV and AI is revolutionising broadcasting, opening new opportunities for broadcasters and advertisers alike. Through personalised content, interactive ads, and high-quality streaming, CTV is setting a new standard for viewer engagement. Advertisers are benefiting from data-driven strategies that deliver more relevant and engaging content to their target audiences, resulting in higher ad performance and ROI. While challenges such as data privacy and technological limitations persist, the future of broadcasting looks bright, with CTV leading the way. For broadcasters and advertisers, embracing CTV and AI is crucial to staying competitive in this fast-evolving industry.
The author is Senior Vice President – APAC, Amagi. Views expressed are personal and not necessarily those of financialexpress.com.