Advertisers confront low-quality AI ads, get glimpse of the ‘agentic’ era at CES 2025

LG and other tech giants are exploring new applications for AI and advertising at CES 2025, with discussions centered on AI agents and the quality of advertising experiences.

The agentic era emerges: The Consumer Electronics Show highlights a shift toward AI tools that can autonomously perform tasks on behalf of users, such as planning travel itineraries and managing daily activities.

• Samsung and Google announced plans to integrate AI features into their connected TV platforms
• Nvidia introduced blueprints for agentic AI tools, describing them as building blocks for developers to create industry-transforming applications
• Google’s director of partnerships Aaron Luber emphasized the significance of Gemini 2.0, highlighting its enhanced multimodal capabilities

Industry perspectives on AI adoption: Marketing executives and industry leaders share varied views on the timeline and impact of AI implementation in advertising.

• Christopher Vollmer of MediaLink suggests the focus has shifted from AI experimentation to practical applications and real use cases
• Search advertising is expected to experience significant disruption from AI agents, though this transformation may be several years away
• Wpromote’s Deanna Cullen describes current AI search implementations as “black box” solutions that require further testing and scaling

The advertising dilemma: CES discussions reveal tensions between the proliferation of advertising platforms and the quality of ad experiences.

• LG Ad Solutions envisions new advertising opportunities, including screens in electric vehicle charging stations
• Uber’s JourneyTV reported a 20% lift in brand favorability and 35% growth in advertisers during the second half of 2024
• Havas Media Network’s Sarah Ivey criticized the current state of advertising experiences, earning audience applause for her candid assessment

Looking beyond the hype: While AI and new advertising platforms generate excitement at CES, practical implementation and value remain key concerns.

• Industry leaders emphasize the need for testing and measured adoption rather than wholesale changes
• Current AI capabilities are viewed more as “nice-to-have” rather than essential tools
• The challenge of balancing advertising opportunities with quality user experiences continues to be a central industry concern