Connected TV is changing the advertising game. With streaming platforms and smart TVs on the rise, artificial intelligence is becoming a key tool for making ads more personal and effective. This shift is not just changing how brands talk to their audiences, but also opening up new opportunities in the advertising market.
Growing investment in CTV
In 2024, investment in CTV jumped 49.3% from the year before, according to a report by IAB Spain and PwC. This growth is a sign of how connected TV is becoming a essential channel for advertisers. In fact, investment in CTV has grown 196.5% since 2022. Most of this investment is split between two models: direct negotiation and programmatic advertising.
AI drives innovation in advertising
Artificial intelligence is what’s really driving this growth. It’s allowing advertisers to personalize and target their ads in new ways. With AI, brands can analyze huge amounts of data in real time and create more relevant ads for each user. Silvia Fernández, Head of Platforms & CTV at EXTE, says, “Artificial intelligence will change the game for advertising on connected TV. It’s no longer a static model, but a dynamic interaction between brands and consumers.”
Transforming the advertising landscape
AI will impact many areas of CTV advertising. For one, it will make it easier to create ads that are tailored to individual users. It will also help advertisers adjust their campaigns in real time to make them more effective. Additionally, AI will enable more interactive ads, allowing users to engage with brands in new ways.
Interactivity and new ways to connect with audiences
Interactivity will become more important with the integration of retail media and voice assistants. These technologies will allow advertisers to create immersive experiences for users, making ads more engaging and effective. AI will also optimize A/B testing, identifying which ad versions work best and making adjustments automatically.
Multi-device convergence and new advertising strategies
The convergence of CTV with other devices will be a key trend. Integrating ads across multiple devices, from TVs to smartphones and tablets, will create a more seamless experience for users. This will enable new strategies like dynamic product placement and gamified ads with rewards for interaction. AI will also enhance audience segmentation, analyzing user behavior and preferences to create highly personalized campaigns.