Artificial Intelligence to reshape Television Advertising

Artificial Intelligence is entering into almost every industry in today’s world, and the television advertising industry is no exception. Artificial Intelligence marketing is a process of collecting and analysing customer’s data to improve customer’s journey.

Television Advertising is being thoroughly reshaped by the evolution of video streaming and digital technologies. And the next revolution in Tv advertising is going to be powered by AI and machine learning. Video streaming services like Youtube, Hulu and Netflix already started taking advantage of Artificial Intelligence to identify the content of their viewers.

programmatic tv ad

How Traditional Tv advertising works

In Traditional tv advertising, Advertisers rely on the ratings of Tv shows to figure out which audiences to target their ads. These ratings of the Tv shows include insight into the gender, age, ethnicity, economic status and location of people viewing shows. Television network uses these demographics to sell ad space to different advertisers ahead of time. For example, if the audience of a television series such as The Good Place is females between 17 to 32, television networks would sell that ad space to the advertisers who are looking to advertise to the same demographics. This advertising strategy has worked for decades, but as viewers are becoming more addicted to advance personalisation from web platforms like Netflix, Amazon Prime and Youtube, Tv advertisers will have to follow suit.

How Programmatic Tv advertising works

 Today, Advertisers can use superior data and digitalization to optimize a traditionally manual process. Kenneth Kulbok, Programmatic sales lead of EMEA at LinkedIn Programmatic, said “Put very simply, programmatic is buying digital advertising space automatically, with computers using data to decide which ads to buy and how much to pay for them, often in real time.” In simple, AI programs will make the decision about when and where to buy or sell ad space according to cost-versus-benefit information and demographics. Essentially, Tv will learn viewers habits in the way web browser already does, allowing advertisers to show ads based on that information. For example, you and your neighbour may be watching the same television series The Big Bang Theory but seeing different ads based on your unique interests and habits.

The future of Tv comes down to personalized experiences and customized content.  

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