As marketers prepare for the upcoming CES event in Las Vegas, scheduled for next week, discussions surrounding deal-making strategies and the role of artificial intelligence (AI) in advertising are taking centre stage. This annual technology trade show has long served as a platform for agencies, brands, and ad tech companies to set the tone for new business in the year ahead.
Mark Wagman from MediaLink, speaking to Ad Age, anticipates a shift in the nature of interactions at CES 2025, predicting "more closed-door meetings that centre on striking larger but fewer partnerships." This trend points to a growing focus on substantial collaborations rather than a proliferation of smaller relationships among advertisers and technology providers.
The current landscape is also showing signs of consolidation, particularly in the television advertising sector. Wagman attributes this trend partially to the excitement surrounding the potential applications of AI. This wave of innovation has inspired a surge in the number of ad tech-focused AI startups, all expected to be in attendance at CES, vying for the attention of advertisers and agencies. Within this competitive environment, advertisers are now more discerning than ever regarding the number of ad tech partnerships they maintain. They are placing an increased emphasis on probing potential AI partners about the capabilities of their large language models, marketing personalisation tools, and AI-driven chatbots.
In parallel, the discourse surrounding brand safety and advertising on news platforms continues to evolve. A report from The Wall Street Journal highlights a disconnect in brand strategy, revealing that while advertisers express a desire to collaborate with news publishers, expectations for engagement with hard news content remain low for 2025. According to the findings, there is a persistent reliance on keyword blocklists which may hinder effective communication. Notably, The Washington Post experienced significant challenges last year, with around 40% of its inventory being flagged as brand-unsafe by automated solutions.
Agencies such as GroupM defend the reduced ad expenditures allocated to hard news, noting a pivot towards funding for sports and entertainment coverage instead. Susan Schiekofer from GroupM commented on the challenges, stating that advertisers still wish to avoid news content while targeting areas like finance or automotive stories, leading to what she describes as “a little throwing out the baby with the bathwater.”
The conversation also extends to potential acquisitions in the tech sector, with speculation emerging regarding Amazon's possible interest in acquiring Lyft in 2025. Columnist Anita Ramaswamy from The Information notes that while Lyft has struggled to keep pace with competitors like Uber, it also holds valuable advertising inventory across various platforms. Such a move could reshape the advertising landscape by integrating Lyft's offerings within Amazon’s extensive digital ecosystem.
In another development, AI-powered virtual product placement startup Rembrand has successfully secured $23 million in Series A funding, indicating strong investor confidence in the future of AI applications in advertising. Additionally, a recent ruling from a federal appeals court has confirmed that the Federal Communications Commission (FCC) lacks the authority to enforce proposed net neutrality rules, a decision that may have implications for the wider media landscape.
With various significant movements within the industry—ranging from funding for new technologies, ongoing discussions about regulatory frameworks, to shifts in consumer engagement strategies—these trends set the stage for what promises to be a transformative year ahead for businesses leveraging AI and automation in their operations.
Source: Noah Wire Services