49% of consumers believe they can distinguish between traditional and AI ads on CTV

49% of consumers believe they can distinguish between traditional and AI ads on CTV Duncan is an award-winning technology industry analyst, specialising in cloud computing, blockchain, martech and edge computing.

49% of consumers are confident they can distinguish ads generated by AI versus traditional methods, with nearly half (49%) stating they do not care whether an ad was made using AI or traditional methods as long as it looks authentic.

That’s according to new insights released today by LG Ad Solutions, to determine consumer perceptions and preferences towards the use of AI in CTV advertising.

Ed Wale, VP International at LG Ad Solutions, said: “Consumer appreciation and acceptance of advanced technology is fuelling demand for richer ad experiences. Our data highlights that AI is already becoming a key driver in CTV’s growth with respondents noticing personalised advertising and enhanced brand perception.

“That said, it is crucial for advertisers to understand the evolving advancements of the technology and consumer concerns around regulation, especially with the upcoming General Election.”

The generative AI industry is experiencing rapid growth, with over 1,400 startups currently active, 55 of which specialize in creating advertising creative; in the UK last year startups utilising AI raised $4.5B in investment. This technological advancement allows brands to develop highly personalised global ad campaigns at the click of a button. As a result, it is crucial for brands to understand how consumers will perceive these innovative ad strategies to maximise their impact and effectiveness.

The survey, which connected with over 500 U.S. CTV owners, also revealed:

  • Consumers think personalisation is performing: 74% of respondents stated they have noticed advertisements they believe are specifically tailored to them. And while this might serve as a clear indicator that personalised advertising is generally recognised by the public, consumers aged 55 and older state they don’t report noticing these types of ads as much – signalling a generational divide. 
  • AI = innovation when it comes to brand perception: 38% of consumers agree that brands using generated AI ads enhance their perception of the brand’s innovation, with more than half (51%) of consumers ages 35-54 aligning with the statement. Separately, 31% are neutral about the use of AI in advertisements, stating it doesn’t sway their opinion. 
  • But regulation is a real concern: Despite 30% of consumers stating they would like ads more if they were personalised with AI, 80% believe there should be regulations on the use of AI in specific contexts like political advertising for the upcoming 2024 election. 

LG Ad Solutions leverages AI technology to understand consumer behaviours across LGE global platforms, ensuring relevant content discovery and contextually relevant alignment of ads. It also enables dynamic creative swaps based on real-time audience location, weather, and household attributes, ensuring ads are highly relevant and effective. In the future, LG Ad Solutions will have AI-driven reporting that will allow advertisers to effortlessly access detailed insights and receive unique reports on demand. 

Tony Marlow, CMO at LG Ad Solutions, said: “Brands have traditionally created singular global campaigns to maximise scale and reach, but now with AI, they can deliver highly personalised global campaigns using insights.

For example, one brand at LG Ads used local weather conditions to determine the most relevant product to advertise, without needing separate campaigns and increased resources. The sky’s the limit with AI, and we are excited to see what opportunities it opens for CTV advertising.”

Interested in hearing leading global brands discuss subjects like this in person? Find out more about Digital Marketing World Forum (#DMWF) Europe, London, North America, and Singapore.

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