CTV Ads: Generational divide on AI personalization

A new study by LG Ad Solutions explores consumer perceptions of artificial intelligence (AI) in connected TV (CTV) advertising. The findings, released this month, reveal a mixed response, with a significant portion of consumers expressing both openness to personalization and concerns about regulation.

According to the LG Ad Solutions survey of over 500 U.S. CTV owners, nearly half (49%) of respondents believe they can differentiate between ads created using AI and those produced through traditional methods. Interestingly, this same percentage (49%) indicated they don't mind whether an ad is AI-generated as long as it appears authentic.

The survey highlights a potential generational divide regarding personalized advertising. While 74% of all respondents reported noticing ads tailored to their preferences, this recognition was less frequent among consumers aged 55 and over. This suggests a generational gap in awareness or acceptance of personalized advertising practices.

The study indicates a positive association between AI-generated ads and brand perception. Thirty-eight percent of respondents agreed that such ads enhance their perception of a brand's innovation. This sentiment was particularly strong among the 35-54 age demographic, with over half (51%) expressing this view. However, a significant portion (31%) remained neutral on the impact of AI in advertising.

Despite the potential benefits of personalization, the survey also reveals concerns about AI regulation. Eighty percent of respondents believe regulations are necessary for AI use in specific contexts, such as political advertising for the upcoming 2024 U.S. election. This highlights potential anxieties surrounding the manipulation of information and the ethical implications of AI in political campaigning.

LG Ad Solutions leverages AI to personalize ad experiences and optimize campaign performance. Their technology allows for real-time adjustments based on factors like location, weather, and household demographics. Additionally, LG Ad Solutions is developing AI-driven reporting tools to provide advertisers with deeper campaign insights.

Tony Marlow, CMO at LG Ad Solutions, emphasizes the potential of AI to personalize CTV advertising at scale. He cites the example of an LG Ads client who used AI to tailor product promotions based on local weather conditions. Marlow believes AI presents vast opportunities for innovation within the CTV advertising landscape.

The LG Ad Solutions study offers valuable insights into consumer perceptions of AI in CTV advertising. While a significant portion of consumers are open to personalization, concerns about regulation and potential manipulation remain. As AI technology continues to evolve, navigating the balance between personalization, transparency, and ethical advertising practices will be crucial for the future of CTV advertising.