what makes these new ads stand out is their dynamic and interactive format, closely resembling what users are accustomed to on social media platforms like instagram, tiktok, and facebook. this move comes as part of the television industry’s efforts to reclaim part of the advertising revenue that tech giants such as meta and google have captured, particularly through digital ads targeting small and medium-sized businesses—earning them massive profits each year.
strong alliances to compete with tech giants
according to a wall street journal report reviewed by sky news arabia’s economy section, several tv companies are joining forces to enhance their ability to compete with major tech firms like meta, google, and amazon. this is being achieved by building ai-powered self-service advertising platforms, making it easier to attract traditional social media advertisers—including direct-to-consumer brands as well as app and gaming developers.
this technological collaboration allows advertisers to access smarter, more flexible solutions, enabling them to manage their campaigns with greater efficiency and target precise audiences rather than relying on costly, mass-market ads.
ai cuts costs and boosts efficiency
with connected tv capabilities, small and medium businesses can now target their audiences more accurately and maximize their advertising budgets. for example, a sports store owner can direct ads exclusively to sports enthusiasts, ensuring direct and effective reach while reducing wasted spend.
the report also highlighted that media giants like comcast, in collaboration with streaming device makers such as roku, are developing ai tools and self-service platforms to help advertisers achieve their goals more precisely. this summer, the uk’s channel 4 introduced a generative ai-powered platform capable of reducing the cost of producing a 30-second ad by up to 90%, making tv advertising more affordable and accessible for smaller businesses.
how roku and advertisers benefit from ai
roku has developed ai-driven software that enhances the quality of low-resolution videos when shown on streaming platforms. roku also leverages services from ai startup spaceback, which transforms social media content—such as tiktok videos—into commercials that can be easily displayed on its platform.
james burroughs, vice president of product and engineering at universal ads, comcast’s digital sales platform, explained that ad sellers aim to cut costs by offering ai-powered services to advertisers free of charge. he revealed that universal ads will soon launch an ai video-generation assistant.
decline of traditional tv advertising
media conglomerates and streaming platforms are turning to social-media-style advertising, supported by ai tools, to counter the ongoing decline in traditional tv ad sales. according to research firm emarketer, u.s. spending on “broadcast and cable” ads will fall by 15.5% this year to $49.94 billion, while spending on “connected tv” ads will rise by 13.2% to $31.91 billion. emarketer projects that connected tv ad spending will surpass traditional tv advertising by 2028, marking a radical shift in the ad market.
tv advertising becomes accessible to all
according to media and digital advertising expert philippe abou zeid, today’s transformation mirrors the shift a decade ago when digital platforms dominated the advertising market, displacing newspapers and magazines. he noted that this shift gives small and medium advertisers opportunities they never had before, as costly tv ad slots are no longer the only option. now, businesses can launch targeted campaigns with limited budgets aimed at specific audiences, opening the door for startups and mid-sized retailers to enter tv advertising more effectively.
challenges and the loss of distinction
digital and traditional marketing expert ghada kammoun, however, warned that television’s success in regaining ad revenue cannot rely solely on copying digital advertising styles. while ai reduces costs and speeds up ad production, it risks producing a flood of repetitive, low-quality content—turning campaigns into “digital noise” with little impact on viewers.
she also noted that social-media-style ads might erode tv’s unique positioning as a premium content platform compared to tiktok, instagram, or facebook. the psychological factor also plays a role: subscribers paying monthly fees to netflix or disney+ may feel annoyed if subjected to low-quality ads. the challenge, therefore, lies in balancing revenue generation with preserving a premium viewing experience.
kammoun further cautioned that audience targeting based on detailed behavioral data raises privacy concerns. while users are used to “intrusive” ads on social media, seeing the same pattern infiltrate television—traditionally seen as a more protected space—could provoke negative reactions if not handled transparently, ultimately undermining viewer trust in streaming platforms.
the future of streaming ads
soon, users of platforms like netflix, disney+, and paramount+ will encounter innovative, social-media-style ads powered by ai to precisely target viewers. tv companies, in collaboration with hardware providers like roku, are working on ai-driven advertising platforms to boost revenue and attract small and medium-sized businesses that prefer targeted digital campaigns over costly traditional methods.
estimates suggest that u.s. spending on traditional tv ads will fall by 15.5% this year, while connected tv ad spending will rise by 13.2% to nearly $31.91 billion. media experts hope this transformation will help television compete with tech giants while offering measurable, smart advertising experiences. the challenge, however, remains in maintaining content quality and protecting viewer trust.