Advertising agencies are poised to benefit from the widespread adoption of artificial intelligence. Tim Nollen, senior media technology analyst at Macquarie, joins Yahoo Finance Live to discuss how AI can help advertising agencies optimize their budgets.
Nollen acknowledges that AI “has been a factor for many years now” in the advertising and media landscape. However, it also highlights the “broader implications” of language models like ChatGPT, which could fundamentally change the way consumers search. This change could have a significant impact on revenue in the search market, which is already a $200 billion industry, Nollen says.
He notes that AI could open up opportunities for advertisers who allocate ad spend to search engines, allowing them to diversify their budgets and explore alternative avenues. Nollen cites companies like AppLovin (APPLICATION) as potential beneficiaries: the company could leverage its data “to make its automated ad buying platforms more efficient,” potentially providing a higher “return on spend” for advertisers.
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Editor’s note: This article was written by Angel Smith
