It’s not just reshaping consumer engagement, it’s heralding a new era of data-driven creativity. In a new video series from The Drum and LG Ads [watch here], we caught up with industry pioneers in Cannes to explore the intricate fusion of interactive storytelling and precision targeting, and how it’s paving the way for more personalized ad experiences.

A new era in ad innovation

A new study from LG Ad Solutions, which explores how consumers are feeling about the deployment of AI in the advertising ecosystem found that while 49% of people think they can spot AI-generated creative, 51% say that when brands use generative AI it boosts their perception as an innovative brand.

As AI continues to permeate the CTV landscape, its role in enhancing creativity and operational efficiency cannot be overstated. It’s for this reason that “finding the right partners who understand data and can deploy it effectively, as well as great storytellers who can think laterally across creative and technology, is crucial,” says Winston Binch, chief brand and experience officer at GAL Binch. “Brands must think like creators and take risks to create content that is entertaining, useful, and culturally relevant.”

The transition from traditional TV to CTV and streaming was the talk of the Croisette, bringing new opportunities for consumers, advertisers, and content providers. Reflecting on this shift, Mark Garner, executive vice-president and head of global FAST channels at A+E Networks, stresses the importance of balancing innovation and legacy in the pivot to new strategies.

CTV offers a new window for audiences to discover content they might have missed or “never experienced” during its initial broadcast, he says. This “premier opportunity” for content not only extends the lifecycle of shows but also opens new advertising avenues, making it critical for broadcasters to pivot strategically amidst the decline of traditional pay TV.

Interactive viewing experiences

Interactivity in CTV continues to evolve, turning passive viewing into an active experience with engaging and personalized content that focuses on consumer passions and interests. By incorporating simple yet effective elements like QR codes during sports broadcasts, brands can create compelling and interactive ad experiences that resonate with viewers​​.

“What I love is a pause ad, especially when it hits me at the right time,” says Chloe Pastore, president, investment PMX at Publicis, allowing viewers to purchase items seen on screen instantly. This seamless transaction process, coupled with AI’s ability to curate relevant ad content based on the viewing scene, creates a highly engaging and personalized experience for consumers, she says.

Technology enables this real-time engagement for brands to connect with consumers in the right environment at the right moment. “The coolest ad creatives on CTV are around shoppability and being able to connect with an audience in those contextual environments,” says Dave Kersey, chief media officer, GSDM. This approach not only enhances the creative experience but also drives immediate conversion, making AI a pivotal tool in mapping out consumer journeys and delivering relevant messages.

Data-driven creativity

The integration of data and creativity is a recurring theme in the discussions. Verna De Jesus, vice-president, inventory development, The Trade Desk, elaborates on how data collaboration and AI-driven personalization are transforming advertising strategies, with the ability to leverage first-party data and retailer data to create highly targeted and relevant ads.

“The creativity is really in the planning, the actual creative, and your messaging,” she says. This approach ensures that ads are not just generic messages but tailored experiences that resonate with individual consumers​.

The creative use of data in measurement and attribution allows brands to tell compelling stories and track the effectiveness of their campaigns, adds Mike Brooks, global business development & partnerships at LG Ad Solutions: “We’re seeing a huge increase in the number of custom measurement solutions,” due to the deprecation of third-party cookies pushing the industry to innovate with identity solutions that ensure privacy while enabling precise targeting.

A new dimension: the homescreen

As smart TV home screens capture viewers’ attention the moment they power on their TVs, this provides a unique opportunity for original equipment manufacturers (OEMs) like LG with the hardware and operating systems to facilitate enhanced viewing experiences.

“It’s the first screen you see when you power on the TV, capturing audiences in a discovery mindset,” says Helen Keelan, senior sales director, LG Ad Solutions. This prime real estate is enabling advertisers to reach a captive audience, enhancing engagement and providing a significant opportunity for incremental reach​.

LG’s smart TVs serve as entertainment hubs, offering not just TV content but also streaming music, news, and even home security monitoring, adds LG Ad Solutions’ head of publishers and programmatic platforms, Ryan Afshar, making it a critical touchpoint for content discoverability and advertiser engagement, and a powerful platform for high-impact advertising units.

The consensus among industry leaders is clear: the future of CTV lies in the seamless integration of technology and creativity, offering personalized and interactive experiences that drive consumer engagement and business outcomes. The continuous evolution of AI and data-driven strategies will undoubtedly shape the future of consumer engagement in the age of CTV.

Catch up on the full video series, CTV’s Creative Convergence, here on The Drum TV.