Tony Marlow, CMO of LG Ad Solutions, discusses the evolving landscape of television advertising. He highlights the Big Shift from traditional TV to streaming, where viewers increasingly embrace ad-supported content. The conversation delves into shoppable TV and how AI is transforming marketing by enhancing targeted ads and user engagement. Marlow also explores psychological principles behind consumer preferences, revealing how relevant advertising can enhance viewer experiences. Tune in to discover the future of interactive TV and its impact on branding.
The shift toward ad-supported streaming reflects changing consumer preferences, revealing that viewers increasingly value relevant advertisements in their media experience.
Artificial intelligence is set to transform marketing by optimizing audience targeting and generating tailored ad content, enhancing overall advertising effectiveness.
Deep dives
The Big Shift in Advertising
A significant transformation in advertising has emerged, particularly in television, driven by changing viewership habits. During the pandemic, there was a surge in media consumption, shifting primarily to subscription-based streaming services without ads. However, as people sought more content at a lower cost, there's been a growing acceptance of ad-supported streaming services. This shift highlights that ads are necessary for marketers to connect with audiences, dismantling the misconception that consumers inherently dislike advertisements as long as they are relevant.
The Impact of Home Screen Experience
The home screen of modern smart TVs serves as a critical launchpad for both consumers and advertisers. This screen acts as the initial interface for users, akin to a portal that directs them to various entertainment options. With opportunities for native advertising positioned on this screen, marketers can leverage the primacy effect, where initial ads are more likely to be remembered by viewers. This emphasizes the importance of creating engaging ad experiences that align with user intent while maintaining a balance between media and promotional content.
The Evolving Landscape of Shoppable Ads
Shoppable advertising has seen incremental growth, yet it remains largely tethered to traditional methods, like QR codes. While these codes have gained popularity for linking TV viewing to mobile purchasing, the future lies in creating more frictionless shopping experiences integrated directly within ads. Innovations such as WebOS Pay aim to streamline purchasing directly through viewing, allowing for instant transactions without disrupting the viewing experience. This evolution could significantly enhance consumer engagement and conversion rates, particularly in association with timely content like live sports broadcasts.
Artificial Intelligence's Role in Marketing
Artificial intelligence is poised to revolutionize the marketing landscape with its rapid capabilities to generate creative content and optimize audience targeting. The potential for AI to produce various ad creatives and dynamically tailor them to specific audience preferences could reshape advertising efficiency. This instantaneous adaptability may outpace human creativity, facilitating quicker responses to consumer behavior and preferences. The combination of AI in both creative development and audience segmentation could create more relevant and effective advertising strategies.
On this special episode of The Media Odyssey, hosts Evan Shapiro and Marion Ranchet sit down with Tony Marlow, Chief Marketing Officer at LG Ad Solutions, to explore the ongoing transformation of television advertising. They dive into The Big Shift—how consumer habits moved from traditional TV to streaming and the growing acceptance of ad-supported content.
Tony shares insights from LG Ads' latest research, highlighting that not only do most viewers use ad-supported streaming, but many actually prefer it. The conversation touches on shoppable TV, CTV ad targeting, and the role of AI in advertising, along with the psychological principles that influence consumer behavior.
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00:00 Welcome Tony Marlow / The Big Shift in Advertising 12:17 The Home Screen as a Launchpad 23:02 The Future of Shoppable TV and AI in Marketing