Consumer vs Ad Spending, OpenAI & More

This week has been stocked full of AI and advertising news - sort of like a dramatic tango of news actually.

As consumer spending takes the lead on the dance floor, advertisers should be thinking about the choreography to align their strategies with evolving AI technologies to hit the right moves. Next, In the dance between AI and advertising, explore how OpenAI's internal drama reveals the human nuances, while Google's ad misplacements underscore the need for AI-driven precision in safeguarding brand safety.?

Are You Capturing the Full Advertising Market?

Despite a robust growth rate of 4.9% in real GDP and resilient consumer spending, the advertising industry faces a period of cautiousness. While consumer spending exceeded expectations, ad spending for Q4 is expected to remain flat, with clients adopting a conservative approach due to various challenges, including lingering Covid outbreaks, labor issues, and inflation. Advertisers are navigating this landscape by incorporating flexibility into contracts, preparing for unforeseen events and ensuring reactive strategies.

Amid this backdrop, advertisers can seize opportunities by strategically targeting channels that resonate with consumers during this economic turbulence. CTV and digital video are anticipated to be key focus areas for Q4 ad spending. Clients are experimenting with interactive formats like On-Stream, emphasizing the integration of streaming ads on CTV for cost-effectiveness and mass reach. Although marketing budgets remain scrutinized, the forecasted 5% increase in ad spend for the year indicates a positive trajectory, aligning with the uptick in consumer confidence and spending observed in the retail sector.

The uptick in consumer spending definitely indicates that there’s margin to play with. If you’re looking for ways to strategically increase brand awareness or purchase consideration, shoot me a message.

The OpenAI Situation

In a recent twist at OpenAI, deemed the Turkey-Shoot Cluster F*ck, over 730 employees signed a letter threatening to leave unless the startup's board resigned and reinstated the ousted CEO, creating a stir in the AI community.

This development is viewed as a substantial win for Microsoft, where the former-now-current CEO, Sam Altman, has found an ally. Microsoft's approach to AI development receives a strong endorsement, as the employees see it as the best and safest place to continue their work. However, the situation has raised concerns among AI watchdogs, such as Margaret Mitchell from Hugging Face, who worried that Altman's return could stifle dissent within companies.

In addition to the internal turbulence, OpenAI faces external delays. The launch of its GPT Store, a marketplace for customizable GPTs, has been postponed until 2024, as revealed in a memo seen by Axios. This delay impacts the timeline Altman previously mentioned at DevDay, where he initially announced the GPT Store's launch in November. The setbacks at OpenAI may have ripple effects on the AI market, influencing the perceptions of governance and potentially shaping industry dynamics. We have to remember that AI is a tool.?

Adalytics and Ad Fraud

The ad industry faces a transparency challenge as a report sheds light on Google's Search Partners network (GSP), revealing instances where Google search ads were displayed on non-Google sites without advertisers' explicit consent. The report by Adalytics uncovers ads appearing on inappropriate platforms such as hardcore pornography and pirated content websites, raising concerns about brand safety. Notably, even on websites flagged by advertisers, like Breitbart.com, ads were still served. In this environment of ad fraud and misplacement, the need for greater transparency becomes evident, with advertisers grappling with the lack of tools for independent monitoring.

To combat the challenges posed by ad misplacement, advertisers should leverage advanced contextual engines for web and video, such as Qortex for video. These engines utilize sophisticated algorithms to analyze content contextually, ensuring that ads are placed in environments aligned with a brand's values and objectives. By incorporating these tools into their ad strategies, advertisers can mitigate the risk of their brand being associated with inappropriate content and enhance overall brand safety, fostering a more secure and controlled advertising environment.

Talk soon,

Zack Rosenberg Co-Founder & CEO? Win The Moment? Schedule a meeting