Advertising is About to Undergo a Seismic Shift — Are You Prepared?

October 20, 2024
6:02 pm
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Jake Roper

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Billions of ad dollars will be in these media placements and it’s not what you think..

Remember when pop-up ads were the bane of our internet existence?

Those intrusive little boxes that would appear just as you were about to click on something important, causing you to accidentally download a toolbar you didn’t need?

Ah, the good old days.

Well, buckle up, because advertising is about to take a turn so sharp it’ll make those pop-ups seem like quaint relics of a simpler time.

And if you’re not paying attention, you might just find yourself left in the digital dust.

Let me paint you a picture.

Traditional Advertising Is Losing Its Mojo

A few months back, I was catching up with my friend Lisa, who runs a mid-sized online retail business. Over coffee, she confessed, “Jake, our online ads just aren’t pulling in the traffic like they used to. It’s like we’re throwing money into a black hole.”

I wasn’t surprised. “Lisa,” I said, “when was the last time you clicked on a banner ad?”

She thought for a moment. “Honestly? I can’t remember. I mostly ignore them.”

“Exactly,” I replied. “And so does everyone else.”

Studies have shown that the average click-through rate for banner ads is a measly 0.1%. That’s like trying to fish with no bait — you might get lucky, but chances are you’re just wasting time.

Consumers are tired of being bombarded with irrelevant ads. They’ve developed what’s called “banner blindness,” where they subconsciously ignore anything that even remotely looks like an ad.

Meanwhile, ad blockers are on the rise. According to Statista, over 27% of internet users now use some form of ad-blocking software. That’s a quarter of your potential audience gone before you even start.

The AI Revolution Is Here, and It’s Changing the Game

While traditional ads are fading into the background, something else is happening — users are flocking to AI-powered platforms for information, recommendations, and even shopping.

Think about it.

When was the last time you asked Siri, Alexa, or Google Assistant for advice? Maybe you said, “Hey Google, what’s the best Italian restaurant nearby?”

And just like that, you got a personalized recommendation without having to wade through pages of search results cluttered with ads.

AI language models like GPT-4 are becoming the new gatekeepers of information. They’re smart, they’re efficient, and they understand user intent better than any algorithm before.

But here’s the kicker: most businesses aren’t leveraging this shift. They’re still throwing money at outdated ad platforms, hoping for a miracle, while savvy competitors are embracing the upcoming AI storm.

It’s like bringing a knife to a gunfight.

The Tale of Two Businesses

Let me tell you about two companies: Company A and Company B.

Company A sticks to traditional advertising. They pour thousands into banner ads, pop-ups, and generic email campaigns.

Their ROI?

Dwindling faster than ice cream on a hot summer day.

Company B decides to embrace AI-powered ad placements. They integrate their products into AI assistants and language models. When users ask for recommendations, their products are suggested seamlessly within the conversation.

The result? I believe company B will see at least a 40% increase in conversions and a 50% decrease in customer acquisition costs.

These eyeballs will be cheap to buy, and the computing power of the language models is going marginally to zero, and any new media platform always presents an arbitrage opportunity.

Think: Facebook ads in 2009 (if you know you know..)

Which company would you rather be?

Embrace the Future of AI-Powered Ad Placements Before It’s Too Late

So, how do you get on board this AI express before it leaves the station without you?

Step 1: Get Acquainted with AI-Language Models

Start by understanding platforms like GPT-4, Google’s Gemini, and others. These aren’t just fancy chatbots; they’re sophisticated systems that can interact with users in natural, meaningful ways.

Step 2: Integrate Your Products and Services

Work on integrating your offerings into these AI platforms. This could mean optimizing your content for AI search or collaborating with AI developers to include your services within AI responses.

Additionally, continue to do research and be prepared for when the keywords can be bought through these language models (it’s coming!)

Step 3: Partner with the Experts

Navigating this new landscape can be tricky. That’s where we come in. At Adstra, we’ve been helping businesses like yours integrate AI into their marketing strategies, and the results speak for themselves.

A Funny Thing Happened on the Way to the Future

I was recently tinkering with an AI assistant, trying to find a taco recipe that didn’t taste like cardboard. I asked, “Hey AI, what’s a delicious taco recipe I can make tonight?”

The AI not only gave me a recipe but also recommended a local store that delivered all the ingredients within an hour. Intrigued, I clicked through, and before I knew it, I was cooking up a storm.

That’s the power of AI-powered ad placements — providing value right when the user needs it, without feeling intrusive.

Imagine the opportunity for these local grocery markets for a second.

They can pay to be the URL that’s placed when I write that prompt.

Additionally, the food companies could pay to be the ingredients placed in that recipe.

Genius.

But Jake, Isn’t This Just More Advertising?

I hear you. You’re probably thinking:

“Great, another way to shove ads down people’s throats.”

But here’s the thing, it’s not about more advertising, it’s about better advertising.

AI-powered ads are different because they’re:

Contextual: They appear as part of the natural conversation, offering solutions when users are actively seeking them.
Personalized: They consider the user’s preferences, history, and intent to provide the most relevant suggestions.
Non-Intrusive: They don’t interrupt the user experience; they enhance it.

If you choose to ignore this shift, you risk becoming obsolete.

It’s harsh but true.

Remember Blockbuster? They ignored the rise of streaming, and we all know how that ended.

Don’t be the Blockbuster of your industry.