CTV as the New Prime Time
CTV’s dominance in markets like India and Japan, where 85% of viewers prefer connected TVs over linear programming. This shift reflects a broader trend where CTV combines entertainment with product discovery.
Dan Taylor, Google’s VP of Global Advertising Strategy, emphasizes that CTV is redefining consumer attention: “Streaming on smart TVs is not just entertainment - it’s a key point of product discovery”.
AI as the Engine of CTV Innovation
DSPs leverages AI tools to generate lifelike ad creatives via text prompts, enabling hyper-personalized campaigns at scale.
AI optimizes ad delivery across formats, which outperform traditional ads in engagement. For example, Puma saw a 66% higher ROI from AI-powered CTV campaigns.
Rising Tide of CTV Adoption
“We’re all helping boats in the water waiting for the tide to come in”. This “tide” refers to the migration of ad spend from linear TV ($33.35B projected for 2025) to CTV, driven by lower CPMs and expanded inventory.
From Tentpole Events to Niche Fandoms
PepsiCo’s Katie Haniffy notes a shift from sponsoring singular events (e.g., Grammys) to targeting fragmented audiences across platforms like Squid Game or The Marvelous Mrs. Maisel. This reflects the challenge of reaching audiences in a decentralized content landscape.
“It’s about finding fans across platforms and scaling them”, aligning with CTV’s ability to deliver culturally relevant ads through precise audience modeling.
Omnichannel Retail Media Integration
PepsiCo’s collaboration with DSPs demonstrated CTV’s role in full-funnel campaigns. By merging brand and retail ads, they achieved a 69% higher conversion rate and 283% ROAS lift.
Their Gen Z-focused rebrand in the Philippines drove 4.6M incremental reach and 7% brand lift using CTV.
Data-Driven Personalization
PepsiCo prioritizes first-party data and AI to tailor campaigns. Their partnership with DSPs enabled machine learning-driven insights to innovate flavors and packaging based on consumer behavior.
Convergence of CTV
Both companies emphasize CTV’s synergy with retail media networks (RMNs). Amazon’s Brand+ and Pepsi’s Dollar General campaign highlight how CTV leverages commerce signals (e.g., purchase history) to target shoppers.
AI and Creative Evolution
Google’s AI tools and Pepsi’s dynamic creative optimization (DCO) underscore CTV’s potential for personalized storytelling. Interactive formats (e.g., shoppable ads) are critical.
Key Takeaways
Google: CTV is a gateway to AI-driven, cross-device engagement.
Pepsi: CTV enables hyper-targeted, culturally resonant campaigns that merge brand-building with performance.
Industry Trend: CTV’s growth is rapid and inevitable.
How is CTV becoming the new prime time?
Connected TV (CTV) has overtaken linear programming in markets like India and Japan, with 85% of viewers preferring connected devices. According to Google, streaming now blends entertainment with product discovery, redefining how audiences engage during prime-time viewing hours.
What role does AI play in CTV innovation?
AI drives CTV’s transformation by generating lifelike ad creatives from text prompts and optimizing delivery for engagement. Brands like Puma achieved a 66% ROI lift from AI-powered campaigns, a model that mirrors Starti’s approach to scalable, data-driven ad performance.
How is Pepsi leveraging CTV for audience growth?
PepsiCo targets fragmented fandoms instead of single events, using CTV to reach niche audiences across multiple shows. Their full-funnel retail media strategy delivered a 69% higher conversion rate and 283% ROAS—proving the potential of precision audience modeling and omnichannel integration.
What role does data play in CTV personalization?
PepsiCo uses first-party data and machine learning to tailor creative and product decisions. This fusion of consumer insight and AI reflects a broader trend toward data-driven storytelling, aligning brand relevance with measurable audience response.
What are the main takeaways for the CTV industry?
Google positions CTV as an AI-powered gateway for cross-device engagement, while PepsiCo showcases culturally resonant, performance-oriented campaigns. Platforms like Starti embody this evolution—combining automation, creative optimization, and audience precision to capture CTV’s accelerating growth.
