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Broadcasters losing ad revenue due to AI recommendations

ChatGPT, Google Gemini and other programs are telling marketers to spend more against digital platforms because they lack understanding of broadcast TV and radio's effectiveness, Futuri says.

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mkeys@thedesk.net

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Marketers are using artificial intelligence tools like OpenAI’s ChatGPT and Google Gemini to develop advertising budgets at a higher rate these days, but their use of mixed media models (MMMs) and large language models (LLMs) are producing unreliable outcomes because they often lack reach, relevance and outcomes-based data from traditional broadcast radio and TV.

That is the overall takeaway from a new report issued by Futuri on Tuesday, which found broadcast TV and radio is being discounted by most popular AI programs because the tools often lack access to information that proves the viability of traditional media platforms.

Futuri’s report was based on more than 50 hours of testing that involves thousands of queries and possible scenarios. In all cases, the programs used by Futuri recommended lower spending against traditional platforms like broadcast TV and encouraged more spending against digital platforms like YouTube, social media and podcasts.

If marketers listed to all recommendations from AI programs, Futuri said digital platforms would see the biggest revenue windfall at the expense of traditional media platforms. (Chart courtesy Futuri Media)
If marketers listed to all recommendations from AI programs, Futuri said digital platforms would see the biggest revenue windfall at the expense of traditional media platforms. (Chart courtesy Futuri Media)

The reason is easy to understand: Futuri said most AI tools, including the ones it used, are trained on publicly-available data or information that is fed into the program. Data from digital media platforms can be easier to quantify and is more-readily available and accessible to programs than data from traditional media platforms, which tend to focus on reach and relevance.

The gap is especially notable in political advertising. According to Futuri, AI-driven recommendations suggest allocating just 7 percent of political ad budgets to broadcast TV this year. In contrast, around 75 percent of political ad spend was allocated to broadcast television in 2000.

Although the emergence of digital and social platforms has changed the landscape, Futuri warned that current AI-generated plans ignore the continued value of reach and relevance in traditional media. Across all campaign types studied, AI tools recommended 7 percent of budgets be allocated to traditional broadcast TV and 18 percent to streaming platforms. In each case, advertisers were advised to reduce spending on linear television in favor of programmatic digital video, even when it may not reflect the best outcome.

To counteract this imbalance, Futuri urged the industry to supply more data about campaign results on TV and radio. “There is no budget” for these platforms in AI planning tools, Futuri said, because the systems “do not understand the value that reach and relevance bring to the market.” The company suggested that broadcasters issue quarterly white papers across major advertising categories to provide more transparency into campaign performance.

Futuri also recommended that marketers integrate success metrics and case studies focused on traditional media into AI training processes. The company’s own platform, TopLine, is designed to help advertisers build quantitative audience profiles and targeted brand positioning strategies to ensure better representation in AI-driven ad planning.

The full report from Futuri is available to view by clicking or tapping here (registration with a corporate email address is required).

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About the Author:

Matthew Keys

Matthew Keys is the award-winning founder and editor of TheDesk.net, an authoritative voice on broadcast and streaming TV, media and tech. With over ten years of experience, he's a recognized expert in broadcast, streaming, and digital media, with work featured in publications such as StreamTV Insider and Digital Content Next, and past roles at Thomson Reuters and Disney-ABC Television Group.
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