AI Enhances Audience Targeting and Commerce on TV Networks

May 17, 2024 at 5:06:10 AM

TL;DR TV networks and streaming platforms are using AI for audience targeting and ad-buying. NBCUniversal is testing an AI platform that identifies unique audience segments. The AI was trained on NBCU-owned content and academic research on human behavior. In tests, AI-generated audiences led to 22%-46% more sales than existing models. Companies like Disney, YouTube, Amazon, and Warner Bros Discovery have also introduced AI features for audience targeting.

AI Enhances Audience Targeting and Commerce on TV Networks

AI is transforming digital advertising, with major networks and platforms using generative AI and machine learning for targeted ads. This was a key topic at the annual upfronts in New York, with companies like NBCUniversal, Disney, YouTube, and Amazon discussing their AI use.

NBCUniversal is beta-testing a platform that uses AI to generate audiences from identity-based signals and content. The AI was trained on every movie and show owned by NBCU and hundreds of web-based content. This approach led to 22% to 46% more sales than existing machine learning models in tests.

Disney's global head of advertising, Rita Ferro, discussed Disney's Magic Words advertising product, which "ties mood to messaging" by analyzing scenes across Disney's library and serving ads around specific emotions or cultural touchpoints.

AI-enabled tools for contextual targeting to shoppable ads were also discussed in upfronts hosted by YouTube, Amazon, and Warner Bros Discovery. Google has a new generative AI feature for finding adjacent audiences, while companies like Canela, Samsung, and Samba TV announced new AI audience tools at the Newfronts.

Creating generative AI tools for audience targeting is complex, involving data cleaning, scaling insights from AI models, and ensuring privacy and accuracy. Biases in the data and models also need to be checked.

Despite challenges, some marketers using generative AI tools for ads are seeing higher click-through rates and lower acquisition costs. According to Forrester, marketing investments in generative AI could total $23.4 billion by the end of 2024 and reach $28 billion by 2023. AI video models like OpenAI’s Sora and Google’s Veo could also power CTV ad creative in the future.

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