After two decades of adapting to new digital channels, advertising may be upended again as generative AI is set to reshape how people discover and choose brands.
Platforms like ChatGPT are becoming part of people’s lives, influencing how people research products and compare providers, so the natural progression is how advertising will move into these AI-powered conversations.
Our Paid Media Team Lead, Reno Hughes, explores how ChatGPT Ads could influence the future of digital advertising in a recent feature in Raconteur.
A new advertising channel is emerging
AI-generated answers provide a very different experience to what consumers are used to. Instead of scrolling through pages of search results, users can ask questions and receive a personalised response in seconds, which is curated based on conversational context. For marketers, this is a new advertising environment where trust, visibility and relevance will be critical to success, but will be based more on genuine value rather than traditional targeting.
Why context will matter more than ever
One of the key themes Reno explores is relevance, and how the effectiveness of advertising within AI platforms will depend heavily on context. Rather than targeting simple keywords, brands may need to think more carefully about the customer intent behind conversations and where they can genuinely add value. As AI becomes more sophisticated at understanding user needs, there is likely to be greater emphasis on helping people solve problems rather than simply capturing clicks.
What should marketers be thinking about now?
While AI advertising is still evolving, it's clear that consumer behaviour is changing. This doesn’t mean that established and proven advertising channels are now redundant, or that advertisers should rush headfirst into every new platform. It is, however, important to understand how AI is influencing customer journeys and where emerging opportunities may fit within their wider media strategy.
Read the full article
For a deeper dive into the opportunities and challenges surrounding ChatGPT Ads, read the full Raconteur article featuring commentary from our Paid Media Team Lead.