Nearly Half of Consumers Believe They Can Distinguish Between Traditional and AI Ads on CTV

New insights from LG Ad Solutions reveal consumer perceptions regarding the use of AI in CTV advertising

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Forty-nine percent 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.

“It is now clear that consumer appetite is shifting towards innovative technologies that enhance the advertising experience. This interest is already evident in critical growth areas for CTV, such as shoppable TV and discoverability for brands and content. However, it will be important for advertisers to understand where consumer sensitivities lie with it - especially around events like the 2024 U.S. election,” said Tony Marlow, CMO at LG Ad Solutions.

The generative AI industry is experiencing rapid growth, with over 1,400 startups currently active, 55 of which specialize in creating advertising creative. This technological advancement allows brands to develop highly personalized 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 maximize their impact and effectiveness.

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

• Consumers think personalization 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 personalized advertising is generally recognized by the public, consumers aged 55 and older state they don’t report noticing these types of ads as much – signaling 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 personalized 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 behaviors 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.

“Brands have traditionally created singular global campaigns to maximize scale and reach, but now with AI, they can deliver highly personalized 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,” said Marlow. “The sky's the limit with AI, and we are excited to see what opportunities it opens for CTV advertising.”

About LG Ad Solutions

LG Ad Solutions is a global leader in connected TV and cross-screen advertising, helping brands find hard-to-get unduplicated reach at optimal frequency across the fragmented streaming TV landscape. We bring together LG’s years of experience in delivering world-class smart TVs to consumers worldwide with big TV audience data and Video AI designed to connect brands with audiences across all screens.