Queensland’s Advertising Horizon: AI’s Impact on Channel Nine’s Future

Navigating the AI Revolution: Can Google’s AdWords Survive the Oncoming Disruption?

Amidst Nine’s profit decline, digital advertising expenditure surged to AUD 11.3 billion in 2022, with Queensland businesses accounting for a significant portion of this spend, contributing billions of dollars to the economy.

As we consider Nine’s profit downturn and the ensuing calls for fair compensation, another question arises: Can Google’s AdWords business model stand up to the oncoming AI revolution akin to how print media faced the emergence of digital advertising?

Exploring Nine’s plea for fair compensation, it’s timely to consider how AI is shaping the advertising industry beyond our current narrow focus areas. The rise of language models like ChatGPT poses a unique challenge for advertisers seeking to reach consumers through channels like Google AdWords. These LLM models have the ability to provide direct answers to user queries, reducing the need for users to click on search results or engage with ads, bypassing traditional search engine results pages (SERPs).

With the increasing prevalence of voice search and virtual assistants powered by AI, users can now interact with devices using voice and natural language. This direct interaction further bypasses traditional search engines altogether, limiting the opportunity for advertisers to display ads to users.

Large Language models now provide personalised recommendations based on user preferences and past behaviour. This direct access to personalised data and relevant information reduces the need for users to actively seek out products or services through search engines, further limiting the visibility and effectiveness of traditional ads.

For advertisers accustomed to reaching consumers through targeted ads on platforms like Google, Youtube & Instagram, the rise of language models presents a significant challenge. The ascent of language models like ChatGPT echoes the disruption witnessed in traditional media outlets such as Nine and other print and TV media. Just as Nine grapples with declining profits amidst the digital era’s onslaught, so too must search engine optimisation (SEO) and Google’s advertising model confront the looming threat posed by these language models. The increasing reliance of users on direct responses from AI-driven models signals a shift in consumer behaviour, reminiscent of the shift from print to digital media consumption.

First published in Curam-AI