Connected TV (CTV) ad spending in the United States is expected to continue growing over the next few years, surpassing $34 billion in 2025 and $42 billion in 2027. according to eMarketer. But like linear television before it, CTV requires advertisers to pay their production costs before they can enter the market.
Artificial intelligence (AI) promises to help advertisers generate video creative quickly and affordably from prompts and images. Such tools have been developed by ad tech companies and platforms, including Meta and Amazonand are already find a purchase from advertisers.
Ad tech company Kargo combines the power of AI and the reach of CTV with its storytelling format, which brings together marketers’ existing audio assets with engaging visuals. The offering launched in August and helps brands avoid the one-size-fits-all approach that results from high production costs and short launch times, according to Michael Shaughnessy, Kargo’s chief operating officer.
“Often brands treat CTV the same way they would linear, but CTV offers many more opportunities. With expanded capabilities comes a specific set of challenges that marketers must learn to address,” Shaughnessy said in emailed comments.
Sierra Nevada was an early adopter of Narrative, using the format to raise awareness of the independent craft brewery’s brand refresh. Kargo combined brand stills with audio introducing its new tagline to create CTV ads that aired on streamers like Paramount and Tubi and outperformed industry benchmarks.
Kargo’s ads topped attention metrics for CTV (+29%) and linear TV (+20%), performing even better among millennials (+46% for CTV and +30% for linear), according to TVision data shared with Marketing Dive. . With higher attention metrics, Kargo is 75% more profitable at generating attention impressions, assuming the same CPMs, the company claims.
“We are thrilled to see that Sierra Nevada’s narrative advertising on CTV has resonated so well with viewers,” said Catherine Gilham, group director of media and investments at Ars X Machina, Sierra Nevada’s media agency. , in a press release. “This success not only highlights the strength of our creative approach, but also reaffirms our commitment to engaging consumers in meaningful ways that elevate the Sierra Nevada brand.” »
By using AI to put “art into ad tech,” Kargo’s Narrative allows advertisers – regardless of size – to reach their audiences on CTV by reducing the cost of production to near zero, Shaughnessy explained .
“This unit has been proven to drive attention, engagement and recall – KPIs that often lead to better financial results,” the executive said.
