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The Evolution of Advertising in the Age of AI
Marissa Mayer explores how advertisers will need to adapt to new consumer expectations, offering more detailed and personalized data
Editorial Team22 November 2024

 

Marissa Mayer, former CEO of Yahoo and a leading figure at Google, explores the evolution of online advertising in the age of AI. According to Mayer, advertisers will have to adapt to the growing demand for precise and detailed answers, providing increasingly comprehensive data to meet consumer expectations. The implications for companies and AI providers could revolutionize the shape of digital advertising.

Key Points:

  • Mayer predicts a shift in advertising models with generative AI.
  • Advertisers will need to provide detailed data to meet new consumer expectations.
  • The concert ticket example illustrates how search is being improved by advertising.
  • AI will open up new opportunities for AI providers and advertisers to collaborate.

Marissa Mayer, a key figure in the tech landscape and founder of Sunshine, recently offered a fascinating perspective on the future of online advertising, particularly as it relates to generative AI. Speaking at the Cerebral Valley AI Summit in San Francisco, Mayer outlined an emerging model that predicts an evolution of traditional advertising dynamics, adapting to new consumer expectations and the growing ability of AI to provide highly detailed and personalized answers. According to Mayer, advertisers will be forced to adapt to a world where data must be not only comprehensive, but also highly specific to respond to user queries in real time. Mayer uses the example of searching for concert tickets to illustrate the shift. In the early days of Google Search, people searching for music tickets appreciated having advertisers offering exactly what they were looking for: tickets available for a specific date, with the added value of advertising helping them quickly find a helpful answer. In an AI-driven context, Mayer imagines that user expectations will be even higher, pushing advertisers to provide more detailed information, such as the layout of the seats in the stadium and the exact price of each ticket. This change means that companies, from Google to any other search engine, will have to work even more closely with advertisers to enable optimal data synthesis. AI, in fact, will be able to present information in a fluid and detailed way, responding to the needs of users without interruptions. Asked whether platforms such as StubHub or Ticketmaster would be willing to provide such a large amount of data, Mayer highlighted a trend that is already underway: over the past decade, e-commerce platforms and advertising have evolved, with advertisers starting to offer more detailed data, enriching the user experience. With the introduction of generative AI, this trend will continue, opening up scenarios in which advertisers will have to be increasingly ready to share complex data to complement the search experience. While Mayer has focused primarily on the evolution of Google search, her vision extends to other areas of digital advertising, especially for pure AI companies like OpenAI and Perplexity. As the cost of AI continues to rise, we can expect AI providers to seek out new revenue streams by partnering with advertisers to respond to specific queries with sponsored answers that reflect exactly what users want.

This could give rise to a new type of advertising, one that relies on technology and marketing to work together, as AI increasingly becomes the medium through which users get the information they need, while advertisers strive to provide ever more precise and detailed answers.