"Despite deepening consumer distrust of AI content, marketers and streamers are embracing AI-powered products. Marketers want cheaper access to video impressions with digital-style performance metrics to justify their spending, while streamers are trying to meet these needs - and attract more ad dollars - with fresh AI offerings. Although AI introduces unprecedented efficiency to the connected TV ad landscape, it also creates a "technological disruption" that comes at a cost, said Laura Martin, a senior entertainment and internet analyst at Needham & Company."
"One of the main use cases for generative AI is making video content. Studies suggest the volume of AI-generated content on the open web - including video - is about to jump exponentially this year. While a higher volume of video ad space lowers overall ad prices for media buyers, the recent jump in AI-generated video is further blurring the lines between what is and isn't premium content."
Generative AI is intensifying competition in streaming by expanding the supply of video content and ad inventory. Consumer distrust of AI content is rising even as marketers and streaming platforms adopt AI-powered tools. Marketers seek cheaper video impressions tied to digital-style performance metrics, and streamers are launching AI offerings to attract those ad dollars. AI brings unprecedented efficiency to the connected TV ad ecosystem while introducing a technological disruption with trade-offs. A spike in AI-generated video blurs distinctions between premium and non-premium content, enabling platforms like YouTube to capture more CTV ad spend and pressuring traditional streamers to lower CPMs.
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