AI Reshapes Advertising Landscape: Publishers Adapt with New Models and Audiences
The advertising landscape is evolving rapidly, with AI and new media channels reshaping how brands reach consumers. Traditional retail media properties are growing, while AI-powered answer engines are disrupting the ad-funded open web. Publishers are adapting, exploring new revenue models and targeting engaged audiences.
AI is transforming advertising. Answer engines like Gemini and ChatGPT are rewriting the rules, drawing users away from traditional search results. This shift has led to a rise in 'zero-click searches', with 58% of informational queries on Google ending without a click to an external site. As a result, publishers face reduced traffic and ad inventory.
To adapt, publishers are exploring novel approaches. In Germany and Austria, companies like STACKIT are using AI-driven advertisement distribution, leveraging large language models hosted in local data centers. Meanwhile, tech giants like Google and Microsoft are rolling out ads within their AI-powered answers, allowing advertisers to redistribute their search marketing budgets dynamically. New players in online publishing are also emerging, stimulating brand discovery and generating fresh demand for advertisers.
Publishers are also experimenting with new revenue models. 'Cost per link' and 'cost per citation' are being explored as alternatives to traditional ad inventory. The creator economy, with platforms like Substack, offers long-form content-driven environments with captive readers, providing a new frontier for brands.
The disruption caused by AI in advertising is pushing publishers to seek out new, more engaged audiences. With traditional ad inventory shrinking and long-tail remnant inventory becoming less relevant, high-quality, context-rich environments are in high demand. As AI continues to reshape the advertising landscape, brands are presented with fresh opportunities to connect with consumers in innovative ways.
