LG Ad Solutions study highlights generational divide in personalized advertising, AI

LG Ad Solutions has released new insights from a survey of over 500 U.S. connected TV (CTV) owners, revealing consumer perceptions and preferences regarding the use of artificial intelligence (AI) in CTV advertising.

The study found that 49% of consumers are confident in their ability to distinguish between ads generated by AI and those created using traditional methods. Interestingly, nearly half (49%) of respondents stated that they do not care whether an ad was made using AI or traditional methods, as long as it appears authentic.

The survey results come at a time when 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 with ease, making it crucial for advertisers to understand consumer perceptions of these innovative strategies to maximize their impact and effectiveness.

The study also revealed a generational divide in the perception of personalized advertising. While 74% of respondents stated they have noticed advertisements tailored specifically to them, consumers aged 55 and older reported noticing these types of ads less frequently compared to younger age groups.

In terms of brand perception, 38% of consumers agree that brands using AI-generated ads enhance their perception of the brand’s innovation, with more than half (51%) of consumers aged 35-54 aligning with this statement. However, 31% of respondents remained neutral about the use of AI in advertisements, stating it does not sway their opinion.

Despite the potential benefits of AI in advertising, the survey highlighted consumer concerns about regulation. Although 30% of consumers stated 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, such as political advertising for the upcoming 2024 election.

LG Ad Solutions currently leverages AI technology to understand consumer behaviors across LGE global platforms, ensuring relevant content discovery and contextually relevant ad alignment. The company also enables dynamic creative swaps based on real-time audience location, weather and household attributes to enhance ad relevance and effectiveness. In the future, LG Ad Solutions plans to introduce AI-driven reporting, allowing advertisers to effortlessly access detailed insights and receive unique reports on demand.

Tony Marlow, CMO at LG Ad Solutions, commented on the findings, stating, “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.”

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As the CTV advertising landscape continues to evolve, the integration of AI technology presents both opportunities and challenges for brands and advertisers. Understanding consumer perceptions and preferences will be key to developing effective and well-received AI-driven advertising strategies.