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Published 17.04.2025
What Google and Pepsi say about CTV.
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-Powered 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.
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.
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