Economics of AI Disruption in Advertising & Media

What distinguishes 2025 from previous years is the scale and strategic centrality of AI Rather than bolting AI onto existing workflows major holding companies Omnicom Publicis Groupe Dentsu WPP and Horizon Media are making AI the centerpiece of their operating models These firms are investing billions into proprietary technology stacks that integrate firstparty commerce data CRM signals loyalty program insights and behavioral trends into centralized planning platforms Tools like Omni Omnicom CoreAI Publicis and Dentsuamp8217s Magpie offer predictive simulations that empower planners to dynamically model media investments across channels based on business outcomes rather than historical normsThis shift toward AIdriven planning is having profound economic consequences Algorithms can identify underpriced inventory optimize crossplatform frequency and reroute investments in real time often without human intervention As a result costperthousand impressions CPMs are being systematically compressed across commoditized channels particularly where sellers lack the data or flexibility to defend pricing Linear TV and basic digital display are especially vulnerable as buyers increasingly benchmark inventory based on modeled ROI not legacy perceptions of reach or prestigeThis evolution has also fueled a reorientation from formatcentric media valuation to outcomebased metrics In AIpowered ecosystems a banner ad that delivers conversions may be more valuable than a TV spot that delivers undifferentiated impressions This redefinition of media value erodes the advantage once held by publishers with highprestige formats but weak data strategiesMedia sellers who fail to integrate AI clean room capabilities and firstparty data analytics into their offerings face a structural disadvantage Without the ability to forecast performance or tailor packages dynamically they are increasingly seen as ratecard vendors not strategic partners Conversely sellers who embed AI into their audience targeting inventory management and crossplatform delivery are positioning themselves to remain relevant in a marketplace where automation personalization and precision ruleIn this new economy AI is the bridge between scale and value the connective tissue that determines whether inventory is merely available or truly investable The implications for 2026 and beyond are clear media organizations that fail to adopt intelligent infrastructure will not simply fall behind They will be priced out of the futureThe integration of Artificial Intelligence into the media buying ecosystem is no longer theoretical itamp8217s systematic In 2025 The Myers Report identifies an eightstage lifecycle through which AI now plays an increasingly dominant role across planning activation and optimization From the earliest stages of audience discovery to continuous machine learning and model refinement AI is rapidly transforming how value is created and measured in advertising1 Audience DiscoveryAI identifies hyperrelevant consumer segments using predictive modeling psychographic clustering and realtime behavior trackingamp8212far beyond traditional demobased targeting2 Media PlanningBudget allocation reachfrequency modeling and scenario simulation are now automated and tailored to brand KPIs using AIenabled media planning platforms eg Omnicomamp8217s Omni Publicis CoreAI3 Creative OptimizationGenerative AI tools produce multiple creative variations test copy and visuals in real time and optimize delivery to match audience responsiveness reducing creative waste4 Inventory SelectionAI evaluates available inventory across programmatic platforms balancing CPM efficiency with brand safety contextual relevance and predicted ROI5 RealTime BiddingAI engines adjust bids dynamically based on user signals site context and campaign goalsamp8212learning from each transaction to improve outcomes6 Campaign ExecutionAI controls delivery pacing channel mix and frequency caps ensuring consistency across fragmented media environments7 Performance AttributionAI enables multitouch and incrementality modeling reconciling complex customer journeys across devices platforms and time windows

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Economics of AI Disruption in Advertising & Media

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Jack Myers

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Economics of AI Disruption in Advertising & Media

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