Monetization and advertising: AI’s impact on revenue streams

From sophisticated targeting in connected TV to AI-driven predictive models that anticipate audience behavior, the broadcast adtech landscape is undergoing a reinvention driven by emerging technology like artificial intelligence.

New research confirms advertisers’ growing commitment to programmatic strategies, while industry executives predict that AI will continue to unlock untapped revenue potential. Here’s how it’s playing out in practice.

Programmatic and CTV surge ahead

A recent “2025 State of Programmatic Report” by Proximic, a division of Comscore, found that 72% of advertisers plan to increase programmatic spending in 2025, strongly emphasizing privacy-compliant approaches. Connected TV is at the center of this spending surge, now commanding 28% of ad budgets — double what it was in 2023. According to the report, nearly half of marketers reallocating their programmatic CTV budgets by shifting funds away from linear TV.

CTV doubles ad share as linear TV budgets decline

“Connected TV emerged as a clear winner, and privacy-focused strategies like contextual targeting are becoming essential for marketers aiming to deliver highly effective, privacy-centric campaigns,” said Rachel Gantz, managing director at Proximic by Comscore.

This shift isn’t surprising given that consumer viewing habits favor streaming over traditional cable bundles. At the same time, the appetite for more automated buying practices has grown, with data from Advertiser Perceptions showing an uptick in programmatic guaranteed deals on subscription video-on-demand (SVOD) platforms.

What does all this mean for broadcasters?

It suggests that ad budgets — historically the lifeblood of linear television — are increasingly in play. Linear TV isn’t disappearing overnight, but it’s facing renewed competition from CTV and digital services that can better target and measure audiences. That shift, executives note, is where AI can make a substantial difference.

“By analyzing viewer data, AI is able to pinpoint content that resonates with audiences the most,” said Siddarth Gupta, principal engineer at Interra Systems. “Personalized ad insertion further maximizes revenue by matching ads to individual preferences or the type of content being viewed at the time.”

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In other words, AI-driven personalization is no longer a novelty; it’s a business imperative, helping broadcasters capture attention in a hyper-competitive ad market.

Personalization and contextual advertising in broadcast

Amid privacy crackdowns and the slow demise of third-party cookies, advertisers are turning to new, “ID-free” solutions that rely on contextual and first-party data.

Proximic’s programmatic report noted that 48% of marketers expect to rely primarily on ID-free strategies by the end of 2025, and 52% plan to increase their use of contextual data for targeting. These figures underscore the importance of aligning ads with relevant content or themes rather than just behavioral profiles.

“AI can enhance content monetization … enabling dynamic ad insertion, ensuring more relevant ads and driving higher engagement and revenue,” said Yang Cai, CEO and president of VisualOn. This personalized approach is central to strategies like contextual targeting, where AI scans video or webpage content to place ads that mesh seamlessly with the viewer’s experience.

Beyond simple text analysis, AI models can detect visual cues, sentiment and even brand safety issues within video content. That granular understanding helps advertisers avoid mismatches — like a children’s toy ad running against adult-themed programming — and allows them to place ads when a viewer is most receptive.

Stefan Lederer, CEO and co-founder of Bitmovin, said one of AI’s greatest strengths is “to efficiently and accurately search, tag and categorize content … unlocking new advertising revenue potential through AI-powered contextual advertising.”

This means that archival footage or niche programming can suddenly become revenue-generating assets, provided the right sponsors are matched to the right content.

Forecasting and pricing benefits from new AI tools

Amid this flurry of AI-driven targeting, there’s also a fundamental question of how to price inventory. Linear TV once had a relatively predictable schedule and a smaller set of data inputs to consider. Now, with dozens of streaming platforms and overlapping audiences, understanding demand levels becomes more complex and critical.

“Broadcasters can leverage AI to learn more about their viewers … helping them create more accurate forecasts for both viewer and advertiser demand, which can help them create smarter pricing strategies,” said Dave Dembowski, senior vice president of global sales at Operative.

By crunching data from multiple touchpoints — CTV apps, linear ratings, social media chatter — AI can give real-time insights on how many eyeballs a specific event or show might attract.

That insight is a big deal in a market poised for massive growth. GroupM’s annual forecast projects global advertising revenue will surpass $1 trillion this year, on track to reach $1.1 trillion by 2025.

Digital platforms, including CTV, are fueling much of this growth, while linear TV revenue is expected to soften. Even as streaming ad loads remain relatively light compared to traditional broadcasts, new ad tiers, shoppable ad formats and advanced measurement tools quickly make streaming a top priority for media buyers.

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Advertiser Perceptions’ “CTV Landscape 2H 2024” study found that 75% of surveyed ad buyers want a single partner that can handle both linear and streaming campaigns. AI-driven forecasting is precisely what can make that convergence practical. By analyzing extensive volumes of viewer behavior data, AI can tell marketers how to distribute ad spend across channels for maximum impact — whether that’s election coverage, live sports or a premium drama series.

Industry Insights: AI’s impact on personalization, monetization and advertising

More integration with more data

While AI presents a robust toolkit, challenges remain.

Privacy regulations continue to evolve, and ID-free environments demand rigorous, transparent data practices. Marketers also note the difficulty of measuring performance marketing on CTV platforms, where 80% see potential for brand-building, yet only 20% consider it ideal for driving direct sales. That mismatch may shrink as AI-based attribution models get better at linking ad exposures to downstream conversions.

Additionally, some worry about data fragmentation.

Even the best AI platform can’t magically unify data if the underlying infrastructure is siloed across multiple providers. However, the push toward “cleanroom” solutions — secure environments where data can be shared without compromising privacy — offers a potential workaround. AI will have more fuel to optimize campaigns while respecting consumer privacy as these environments mature.

The message for broadcasters looking to thrive in this changing landscape is clear: AI isn’t just about easing workflows in the control room or the editing suite. It’s also about enabling precision, efficiency and agility in ad operations.

“AI’s ability to efficiently and accurately search, tag and categorize content can help surface hidden assets,” Lederer said, pointing to a key value driver. Pair that with advanced forecasting capabilities, and a broadcaster can proactively reprice ad inventory, develop niche sponsorships or respond in real time when a piece of content suddenly goes viral.

The marriage of AI and advertising is no passing fad. Programmatic is blossoming, CTV is surging and the lines between digital and linear are blurring faster than ever before.

For those who embrace the change, AI could offer a fast track to sustained revenue growth. For everyone else, it’s a reminder that the old methods of selling commercials at set times may no longer cut it in a world fueled by data, personalization and on-demand viewing.

Ultimately, the real impact of AI on monetization and advertising is measured in what it delivers: more relevant campaigns for consumers, stronger returns for marketers and new revenue streams for broadcasters. And given the rapid advancements, it’s safe to say that this is just the beginning of AI’s influence on the future of advertising.

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