You need to act quickly when AI advertising launches

Any time a new social media platform launches or any platform with rapid growth really you need to pay attention.

It’s the one time when there’s rapid user, few advertisers and lower ad blindness.

Think back to the following:

• Early 2000s when you could precisely bid on what users searched for at a bargain price

• Early 2010s when Facebook was the only platform to keep up to date with friends, family and you saw a wall of updates with photo’s of friends

• Early 2020s when TikTok had its surge of growth

This rapid period of growth is best demonstrated by the chart below (thank you, Everett Rogers):

Advertisers who move early into new PPC platforms typically benefit from lower acquisition costs and higher ROAS due to limited competition and high user growth. This advantage tends to compress over time as more advertisers enter and CPMs/CPCs rise.

AI integration is first and foremost always to the advantage of the paid media platform themselves. 

As investor pressure mounts, user growth plateaus, platforms have to release new ad formats, ad slots, ad watch time and pricing in order to monetize their base better. Therefore, advertiser returns have a tendency to naturally decline over time.

I’m off my soapbox now, back to the issue at hand. 

The exciting part and opportunity presented by AI advertising

The one thing that makes AI advertising, possible, THE most exciting ad platform in the future is relevancy.

Ads that can be displayed without feeling like, you know, an ‘ad’ is the best form of marketing. You’re not interrupting, you’re not taking attention away, you’re adding. 

Adding value to the already existing query with relevant information.

How to prepare for the coming AI advertising age

Here’s my hypothesis on how we should prepare in anticipation of AI advertising

• Start adopting AI ads early

• Know your ICP profile really well and be intimately aware of their problems and frustrations

• Have content available that addresses said problem

• Landing page experience will remain important

• Basic UX and web design principles are as important as ever

• Don’t try and advertise your entire product or service line - really try and hone in on the parts of your product or service that would lead a user to have a long form conversation with AI in the first place

There's always a bit of hesitancy before adopting new advertising platforms

It's the big unknown and before the market has been hit with case studies from every brand or their agency.

And contrarily that's the ideal time to start testing since there's really low CPMs & CPCs available.

That’s my post for today, if you found this valuable, please support independent creators by liking and sharing.

And remember folks.

Take a little bit of risk.