As rapid Connected TV (CTV) adoption reshapes the television landscape, advertising is facing a revolution of its own. Thanks to the advent of Generative AI technology and better access to metadata, advertisers are seeking new knowledge about what’s possible through contextual targeting in CTV – and what the future holds. 

How context creates a better environment for ads and why that matters to advertisers was the focus of the “Context is the New Demo” panel discussion during this year’s StreamTV Show featuring industry leaders including Anoki Founder & CEO, Raghu Kodige, TVREV’s Alan Wolk, Trent Wheeler of Gracenote, IRIS.TV’s Rohan Castelino, Tony Marlow, CMO, LG Ad Solutions and Inderpreet Sandhu, Head of CTV Ads Platform & Ecosystem Partnerships, Google.

The discussion surfaced valuable insights on the next generation of CTV advertising – and how Anoki is pioneering the way. We’re excited to share key highlights and takeaways below.

Why Contextual Data Matters Now More Than Ever

Traditionally, CTV relied heavily on basic metadata, such as genres, captions or actor names, which were insufficient for precise ad targeting.

As we look to the future, it's clear that contextual advertising is set to become a keystone of CTV advertising strategies. The ability to deliver highly relevant, engaging ads to the household’s largest screen without compromising user privacy is a game-changer for advertisers

Anoki, said Kodige, is addressing a critical gap in the market. Companies like Anoki are now using advanced AI to analyze every element of video content – including visuals, audio, text, and more – to understand the context and mood of each scene. This enables advertisers to place ads that align closely with the specific content being    viewed at any given moment. It’s a powerful new option for advertisers aiming to reach audiences across many platforms at once at a time when effective audience targeting is growing more complex, thanks to laws such as GDPR and CCPA tightening controls on personal information and consumers more aware of data privacy regulations. Along with making it possible for advertisers to target audiences based on the context of what they are viewing, Anoki further enhances impact for advertisers by collaborating with major content providers to bring their offerings to platforms like Google TV. This creates a more relevant and seamless advertising experience for viewers while improving conversions for advertisers.

CTV Advertising’s “Missing Piece”

Contextual advertising offers CTV advertisers an extremely compelling proposition: match ads with the content a viewer is currently watching in a highly relevant way. 

While existing data providers have laid a solid foundation with basic metadata, Kodige pointed out that fully unlocking the potential of contextual data will require more advanced targeting and standardization.

For example, say you’re an advertiser who wants to target viewers with ads relevant to the content they were just viewing before the ad break.

“That is the missing piece that was not there before,” Kodige said.
The ability to finely tune ad placements based on the exact scene a viewer is watching is what sets advanced contextual advertising apart. The technology goes beyond simple content categorization and taps into the deeper emotional and situational context of the content to deliver ads viewers will resonate with and remember. 

To a viewer watching a scene set in a bar, a beer commercial during an ad break will feel much more fitting than a diaper ad. This nuanced approach can significantly enhance the effectiveness of ads by making them feel like naturally integrated parts of the viewing experience.

While this approach holds obvious appeal for major household brand names, Kodige and other panelists emphasized the power of contextual advertising for small and medium-sized businesses thanks to the accessibility of advanced targeting tools in CTV. Contextual advertising allows smaller and more regionally-focused brands a significant opportunity to reach their audiences with the same precision as larger players.

Looking ahead, the future may bring an even more intricate level of context to ads, including what is happening in real-time as viewers consume programming. "Take things like weather signals,” said Tony Marlow, CMO at LG Ad Solutions. “Those become context, as well, beyond what’s happening on-screen."

For Contextual Advertising, the Future is AI-Powered

Contextual advertising offers CTV advertisers an extremely compelling proposition: match ads with the content a viewer is currently watching in a highly relevant way. 

While existing data providers have laid a solid foundation with basic metadata, Kodige pointed out that fully unlocking the potential of contextual data will require more advanced targeting and standardization.

For example, say you’re an advertiser who wants to target viewers with ads relevant to the content they were just viewing before the ad break.

“That is the missing piece that was not there before,” Kodige said.
The ability to finely tune ad placements based on the exact scene a viewer is watching is what sets advanced contextual advertising apart. The technology goes beyond simple content categorization and taps into the deeper emotional and situational context of the content to deliver ads viewers will resonate with and remember. 
To a viewer watching a scene set in a bar, a beer commercial during an ad break will feel much more fitting than a diaper ad. This nuanced approach can significantly enhance the effectiveness of ads by making them feel like naturally integrated parts of the viewing experience.

While this approach holds obvious appeal for major household brand names, Kodige and other panelists emphasized the power of contextual advertising for small and medium-sized businesses thanks to the accessibility of advanced targeting tools in CTV. Contextual advertising allows smaller and more regionally-focused brands a significant opportunity to reach their audiences with the same precision as larger players.

Looking ahead, the future may bring an even more intricate level of context to ads, including what is happening in real-time as viewers consume programming. "Take things like weather signals,” said Tony Marlow, CMO at LG Ad Solutions. “Those become context, as well, beyond what’s happening on-screen."

Why Creating Standards Is Crucial for CTV

While the promise of contextual advertising is immense, Kodige and other panelists acknowledged the need for standardization. Currently, different companies use varied taxonomies and standards. This currently makes it difficult to scale solutions across the industry. 

“So much of the contextual data seems to be held within walled gardens, where it's exposed in different ways,” Said Gracenote’s CPO, Trent Wheeler. For example, there are different genre taxonomies and standards for actors, moods, and other signals.
As such, collaboration and consensus on standards is essential, to enable broader adoption and consistency. A shared vocabulary across the industry would help unify efforts and make it easier for advertisers to effectively target audiences at scale.

What’s Next: Building Something Magical

As Kodige told the audience: "We, as marketers, have to enable the industry to harness the power of contextual advertising and build something magical for the consumers."

Ready to join us in shaping the future of CTV? Learn more about how Anoki helps brands increase the relevance and efficacy of their contextual advertising with Anoki’s ContextIQ. If you’re seeking to deepen your knowledge, our Contextual CTV Advertising Primer will walk you step-by-step through the advancements in AI upending traditional advertising for maximum viewer engagement, brand safety and adherence to privacy standards.

You will learn:

• Why today’s CTV landscape is poised for change
• How AI is making CTV targeting challenges a thing of the past
• Exactly what Anoki ContextIQ does to deliver relevance and personalization at scale

Download Anioki’s Contextual CTV Advertising Primer today to discover the new frontier of CTV advertising and stay ahead of the curve.