TV ads will die? Foreign media: AI will be the TV straw's life-saving straw!

The American science and technology blog site VentureBeat recently published an article "Personalized recommendation, AI or will rescue the declining TV advertising industry." The article elaborated on what is programmatic television advertising, and its operation and future prospects.

VentureBeat's article argues that artificial intelligence has changed almost every aspect of modern life, and television advertising is no exception. Through more advanced data collection methods, AI allows advertisers to disseminate content to audiences more effectively through "programmed television advertising." This advertising method will also be more affected by AI in the coming years.

In fact, the programmatic online advertising platform has been used for many years, and it is now capturing small screens. With newer strategies and more advanced AI features, TV advertisers can reach a new level of personalized communication. Let's take a look at how this new AI-affected advertising form is produced and operated.

First, how does traditional TV advertising work?

In general, advertisers determine which audiences place their advertisements through ratings of different television programs. These criteria include audience age, race, gender, economic status, geographic location, etc. Television stations use this information to sell advertisements to different companies in advance. For example, TV shows such as the “Big Bang of Life”, whose typical audience is men between the ages of 18 and 39, will sell advertisements to potential customers to locate the advertisers of this group.

This form of advertising has existed for many years, but as consumers become more accustomed to highly customized web platforms such as Amazon and Netflix, the television advertising industry will have to change. AI-driven procedural strategies are those who change the rules of the game.

Second, how does programmed television advertising work?

Today, the Internet and advertisers can greatly optimize traditional manual processes through superior big data and digitization. Programmatic advertising has been used in online advertising. Kenneth Kulbok, program marketing director for LinkedIn Europe-Middle East-Africa, said, “Simplistically, proceduralization is the automatic purchase of digital advertising time slots. It is through computer processing of big data to decide what advertisements to buy and how much to pay. Real-time.” In short, AI uses big data to measure the cost-benefit ratio of audiences and ads to determine when and where to buy or sell ad periods.

In essence, your TV can understand your habits just as the Internet knows your surfing habits. As a result, advertisers can place advertisements based on your habits, so you won't see ads that you are not interested in repeatedly. This means that you and your neighbors may be watching the "The Walking Dead" premiere, but based on your different interests, you will see different advertisements.

Because programmatic TV ad advertisers can know how many people are watching their ads, where these audiences are located and what their viewing history is, and this information is updated in real-time every minute. In addition, advertisers can also obtain more accurate cost per thousand data (CPM, how much advertising costs each person who hears or sees an advertisement hears or sees the advertising cost) in order to achieve more accurate and more input-output ratios. High ad serving.

Third, the future of programmed television advertising

Programmatic TV advertising is still in its infancy, and it is not yet a very complete system, but it has improved the personalization and accuracy of advertising. In the short term, programmatic television advertising is still hindered, especially the large television networks that do not want to adopt this new system because they have established close cooperation with media companies. In addition, digital marketers believe that the digital fraud rate of programmatic advertising is five times their acceptable range.

However, smaller television networks, such as cable television, may benefit more from programmatic television advertising than large television networks because they need to increase their advertising revenue.

At present, only a small part of television advertising resources are sold in the form of programmatic television advertisements because advertisers and media partners are unable to provide enough valid data.

Fourth, the conclusion

TV advertising is a big business. It generates about 80 billion US dollars in revenue every year. Therefore, if advertisers and TV service providers use programmatic TV advertising, they will gain huge profits in CPM and profits. For brands, there will undoubtedly be a higher return on marketing investment through a more automated approach to audience statistics assessment.

Over time, we can expect AI to play a bigger role in TV advertising. With programmatic TV ads, the days when advertisers rely on Nielsen ratings and ratings will quickly become distant memories.

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