Innovation Labs: LG Ad Solutions Unveils New Division for CTV Breakthroughs
LG Ad Solutions has announced the launch of Innovation Labs, a new division focused on advancing technologies in Connected TV (CTV) advertising and content personalization. Led by Chief Technology Officer Dave Rudnick, Innovation Labs will develop breakthrough innovations that deliver hyper-customized viewing experiences, connecting advertisers, content publishers, and audiences.
A New Frontier in CTV Advertising
Under Rudnick’s leadership, Innovation Labs will create methodologies and technologies to enhance how advertisers and content publishers engage with viewers on CTV platforms. Using LG’s data capabilities and partnerships, Innovation Labs aims to revolutionize personalized and interactive advertising. The division’s mission is to push the limits of CTV, with a focus on hyper-customization — tailoring content and ads to match individual preferences, resulting in more relevant interactions.
“At LG Ad Solutions, we are committed to exploring new frontiers in data-driven personalization and delivering highly customized user experiences,” said Rudnick. “Innovation Labs was created to test strategies, collaborate with companies, startups, and technologies in a simulated ecosystem, and validate these models before integrating them into our business.”
The Rapid Growth of CTV in the U.S.
Connected TV has quickly gained ground as a dominant platform for media consumption, particularly in the U.S. Recent studies show that CTV households are now a significant majority. According to eMarketer, over 87% of U.S. households are expected to use a CTV device by 2024, amounting to more than 120 million households. This growth is driven by the shift from traditional linear TV to streaming services, with viewers increasingly favoring on-demand content.
The Rise of Ad-Supported Streaming: Insights from LG Ad Solutions
Additionally, ad-supported models are becoming more prevalent as viewers opt for free or reduced-cost options in exchange for watching ads. By 2025, AVOD (ad-supported video on demand) services will account for nearly 60% of the U.S. Connected TV audience. This growth is fueling a surge in advertising opportunities, with CTV ad spending in the U.S. expected to reach $27 billion by 2025, making it one of the fastest-growing channels in the digital advertising landscape.
Key Focus Areas of Innovation Labs
- Interactive Ad Formats
Innovation Labs will develop new ways for advertisers to deliver engaging, interactive ad formats on CTV. These innovations will allow brands to connect more deeply with audiences, providing a richer and more personalized experience. - Advanced Content Personalization
As viewers shift toward CTV platforms, personalization has become a critical factor in keeping audiences engaged. Innovation Labs will use viewer behavior analysis and data insights to curate content that aligns with individual preferences - Next-Generation Targeting and Analytics
With access to LG’s data infrastructure, Innovation Labs will enhance targeting capabilities to provide more precise and effective ad delivery.
Redefining CTV Engagement
The launch of Innovation Labs comes at a time when Connected TV popularity is growing rapidly. Rudnick noted that 93% of viewers are now reachable via CTV, with over 63% opting for ad-supported models instead of subscription-based services. This shift opens up new opportunities for advertisers to connect with viewers in more meaningful ways, and LG Ad Solutions is positioning itself at the forefront of this evolution.
“With Innovation Labs, we’re pushing the industry to deliver next-generation advertising and user experiences,” said Rudnick. “This initiative marks a significant step forward for LG Ad Solutions as we continue to innovate in the evolving CTV landscape.”
Shaping the Future of CTV
Through collaboration with companies, startups, and new technologies, LG’s Innovation Labs aims to build a testing ground for future CTV strategies. By simulating real-world conditions, the Labs team can validate new models and integrate them into LG’s offerings. With CTV adoption accelerating across U.S. households and ad spending on a sharp rise, this should allow LG Ad Solutions to create opportunities for brand advertisers to enhance engagement and redefine the viewer experience. The results can fuel shifts in how consumers experience television advertising and personalized content.
