Marketecture Podcast Summary Episode: Cannes Special: Tony Marlow from LG Ads talks AI and 3D Ads
Host: Ari Paparo
Guest: Tony Marlow, CMO of LG Ad Solutions
Release Date: June 17, 2025

Introduction

In this special Cannes edition of the Marketecture Podcast, host Ari Paparo interviews Tony Marlow, the Chief Marketing Officer of LG Ad Solutions. Broadcasting from the vibrant Cannes conference, the discussion delves into the latest innovations in connected TV (CTV) advertising, focusing on artificial intelligence (AI) applications and the emerging trend of 3D ads.

LG Ad Solutions: An Overview

Tony Marlow provides an extensive overview of LG's footprint in the advertising landscape:

• Global Reach: "We have the footprint of about 200 million LG TVs worldwide, about 45 million of them in the US" (01:09).

• Advertising Platforms: LG facilitates advertising across various platforms including the home screen, premium CTV native units, and the LG Fast Service channel, which boasts over 350 ad-supported streaming channels in the US alone.

• Innovations in Ad Formats: Tony highlights advancements such as shoppable ad units and 3D ads. He explains, "Our 3D AD units seem to be gaining a lot of traction where when you turn your TV on... it's just something that's really engaging" (01:09).

• Art and Science of CTV: The blend of creative storytelling with data-driven targeting is emphasized as a unique strength of CTV advertising. "Connected TV is sight, sound and motion that we've always loved about TV. But it's also the addressability that we love about digital channels" (01:46).

Deep Dive into 3D Ads

A significant portion of the conversation centers on the innovative 3D ad units offered by LG:

• Creative Collaboration: "We have our own in-house design team. We help our clients build those ad units" (03:17). An example provided is a campaign with a famous perfume brand where the "perfume bottle sort of pops out from the screen."

• Scalability and Adoption: Tony discusses the scalability of 3D ads, noting that while creative execution is challenging, the underlying inventory and interest from clients make it a viable option. "The scale is there" (03:57).

• Cross-Device Considerations: Addressing whether advertisers need to treat different OEMs (Original Equipment Manufacturers) separately, Tony explains that while CTV environments vary, LG's approach covers a significant portion of the market, simplifying the process for advertisers (04:12).

Advertising Cohorts and OEM Strategies

The discussion shifts to how advertisers perceive different OEMs within the CTV ecosystem:

• Cohort Approach: Tony emphasizes that OEMs are not direct competitors and have minimal duplicated reach. "The duplicated reach is extremely low... Think of it like going direct to glass" (05:34).

• Direct to Glass Strategy: Rather than navigating numerous OTT players, focusing on OEM cohorts like LG allows for more controlled and effective advertising strategies, reducing wastage and enhancing user experience (05:34).

Competitor Insights: Telly's Free TV Model

When asked about a competitor, Tony shares his perspective on Telly’s approach without naming the company directly:

• Monetizing the Platform: "There's something interesting about saying, we're not trying to monetize the hardware. What we're trying to monetize is the platform and the ad experience" (06:51).

• Distribution Challenges: He points out the difficulties in distributing a $0 product, citing retailers' reluctance due to lack of margin. However, he acknowledges the value in offering consumers choice between subsidized and premium hardware (07:22).

• LG’s Focus: "For us, it is about building these beautiful televisions, these beautiful experiences, and the beautiful advertising opportunities that go along with it" (07:22).

AI in Connected TV Advertising

AI emerges as a central theme, reflecting its dominance at Cannes and within the industry:

• Evolution of AI Applications: Tony notes the shift from AI being a mere buzzword to having concrete use cases in CTV. "AI for purposes of creative generation, making the ad units themselves or making variants so you can ab test a large number of ads" (08:31).

• AI Agents and Targeting: The conversation highlights advanced AI agents capable of creating highly granular and novel target segments beyond traditional demographics. "Creating targetable segments in that way... it's much more sophisticated" (10:57).

• Marketplace for AI Agents: Tony envisions a future marketplace where AI agents manage media plans, enhancing the capabilities of human teams. "There will be a marketplace for these AI agents that do things like control your media plan" (08:31).

• Client Expectations and Implementations: Clients are increasingly seeking AI-driven solutions for both creative and scientific aspects of advertising. Examples include AI-assisted ad fitting and emotion-based targeting. "We use AI, so our home screen units are not IAB standard... they're helping on both the art and the science" (09:57).

Industry Concerns and AI’s Impact on Media Spend

Addressing concerns about AI potentially consolidating ad spend:

• AI's Scaling Capabilities: Tony agrees that AI can manage tasks at a scale unattainable by humans, capable of identifying niche but valuable content segments. "AI has the capability to do things at scale that humans can't" (12:18).

• Enhancing Agency Capabilities: Instead of reducing the number of partners, AI is expected to expand the capabilities of media planning agencies, allowing them to exploit a broader range of publishers effectively (12:18).

Pause Ads: The Hottest Trend in 2025

Concluding the discussion, Tony touches on the rising popularity of pause ads in the CTV sector:

• Canvas Impact: Pause ads offer a full-screen takeover, providing brands, especially in the luxury sector, the space to tell rich and engaging stories. "There's something about the pause ad that just affords someone the whole screen" (13:11).

• Current Popularity: The format is gaining traction as marketers appreciate both its visual impact and alignment with consumer behavior, coinciding with broader trends in CTV advertising (13:41).

Closing Remarks

Ari Paparo wraps up the conversation by thanking Tony Marlow for his insights. Tony extends his well-wishes for the remainder of Cannes, emphasizing the collaborative and innovative spirit of the event.

Key Takeaways

1. LG’s Dominance in CTV Advertising: With a vast global footprint, LG Ad Solutions is at the forefront of integrating advanced ad formats like 3D ads into connected TVs.

2. Innovative 3D Ad Units: These ads enhance user engagement by extending beyond traditional ad boundaries, offering immersive experiences tailored for the CTV environment.

3. AI as a Game-Changer: From creative generation to sophisticated targeting, AI is revolutionizing how ads are created, managed, and delivered, with a promising future marketplace for AI-driven media planning.

4. Strategic OEM Partnerships: Focusing on OEM cohorts allows advertisers to efficiently reach diverse audiences without the complexity of managing multiple OTT platforms.

5. Emergence of Pause Ads: As a leading trend in 2025, pause ads provide advertisers with a powerful tool to capture full-screen attention and tell compelling brand stories.

Notable Quotes

• Tony Marlow on CTV's Dual Strength:
  “Connected TV is sight, sound and motion that we've always loved about TV. But it's also the addressability that we love about digital channels.”
  01:46

• On AI’s Role in Advertising:
  “AI has the capability to do things at scale that humans can't. It's almost like being able to see the forest and the trees at the same time.”
  12:18

• Regarding 3D Ads:
  “Our 3D AD units seem to be gaining a lot of traction... it's just something that's really engaging.”
  01:09

Conclusion

This episode of the Marketecture Podcast offers a comprehensive look into the future of CTV advertising through the lens of industry leader Tony Marlow. From innovative ad formats and AI integration to strategic partnerships and emerging trends like pause ads, listeners gain valuable insights into the evolving landscape of digital advertising.

Transcript Reference

For detailed timestamps and direct quotes, refer to the provided transcript sections marked accordingly.