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AI's role in delivering ads on streaming platforms is starting to emerge
A view of Netflix's headquarters in Hollywood.
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Handout/Netflix
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Getty Images
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Topline:
As advertising-based streaming services grow in strategic prominence, these platforms are ready to use AI, which can target consumers with ads the way they are on Instagram or TikTok.
Why it matters: Streaming ad tiers from the likes of Netflix, Amazon Prime Video and Disney, in particular, are increasingly important as these businesses seek growth. But the role that AI can and will play in targeting those ads to viewers, generating ads, and even changing the nature of both advertising and the way the content is structured, has not been fully appreciated.
What it can do: Streaming services, which already have loads of data on consumers, can use AI to target viewers with ads the same way they do on Instagram or TikTok — hyper-personalized to the individual viewer. In addition, product placement can be manipulated for ad space, with AI able to digitally insert various advertisements onto available areas of the screen.
How it’s done: Much has been made of generative AI, where machines come up with new visuals and ideas. Predictive AI, on the other hand, uses data to analyze patterns and predict the future. Known colloquially as “the algorithm,” the technology is already being used on social media to feed consumers personalized ads, and it’s only a matter of time before it comes to streaming.
The Amazon advantage: Prime Video serves to benefit heavily, with AI-enhanced ads pitching consumers on specific products available on Amazon. Netflix, meanwhile, has been adept over the years at collecting data on its customer base to recommend new content and may well be able to transition those capabilities over to the ad market. The legacy studios, while lacking in the data aspect, are fluent in advertising through their linear networks, which won’t necessarily come in handy for their streamers with the proliferation of AI in the space.
For more . . . read the full story on The Ankler.
This story is published in partnership with The Ankler, a paid subscription publication about the entertainment industry.
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