Hey there!

Happy Friday! Definitely check out our main article today. The whole face of advertising might change with the shift in AI and that might make it more expensive for brands to advertise. It will be an interesting evolution in a lot of BAU channels such as Google PPC.

Do you want to partner with us? Send us an email at: [email protected]

1. AI Will Make Advertising More Expensive

2. Are AI-powered shopping assistants any good?

3. How To Get More Gen Z Buyers

4. All The New Amazon AI Investments

AI Will Make Advertising More Expensive

The era of free, ad-supported internet services might be waning as generative AI takes center stage. This shift indicates a move towards paid subscription models for advanced AI services. Companies like Amazon and Google, traditionally known for their free offerings, are now considering charging for sophisticated AI features like the revamped "Remarkable Alexa" and advanced versions of Google's Bard chatbot.

The primary reason behind this shift is the high cost of training and running large language models. These operations require significant investment in technology, such as GPUs, which are expensive to maintain. Furthermore, the traditional ad-supported model might not be as effective in the realm of generative AI. For example, AI-driven search results or chatbot interactions offer less space for advertisements, potentially diminishing ad revenue streams.

As Big Tech companies face slowing growth and pressure to maintain high profit margins, exploring new revenue avenues becomes crucial. The generative AI sector, with its high value and substantial operational costs, appears to be a prime candidate for this shift towards paid subscriptions.

What does this mean for ecommerce sellers?

The likely increase in the cost of advertising and the trend towards paid generative AI services, will necessitate a shift in how e-commerce sellers convert customers. Firstly operational expenses are expected to rise. Tools which were not AI powered previously were charging low monthly fees. Now, with more AI integration these would probably have to increase their fees to cover the additional costs.

With advertising space being reduced due to the change in customer behavior and interaction on search and marketplace platforms, there probably will be an increase in costs and more competition. This might also lead to the emergence of new advertising models. It will most certainly lead to a greater emphasis on content marketing.

• Check out this article about testing AI-powered shopping assistants and where we are currently in terms of the quality of output. Definitely worth a read and a think as most likely most marketplace platforms such as Amazon will roll these out at some point in the very near future. We wrote about the Q&A Amazon bot earlier this week.

• Great article about how to capture Gen Z buyers and what to expect in terms of 2024 for Digital Marketing.

  

• Amazon’s biggest AI launch was scuppered. What were the reasons?

• Amazon’s $1B investment focus in AI and robotics.

📧 Superhuman for iOS - Experience the swiftest email application, now available for Apple devices.

📈 DGM - Create professional diagrams for web and AI applications.

📸 Camp - Organize your cluttered screenshots efficiently with AI assistance.

📬 Mailogy - Interact with your email through AI-enhanced communication.

🤝 Triibe - Utilize AI to foster a more joyful and productive workplace environment.

💬 Helloii - Access ChatGPT directly from your browser homepage.

😍It was great, all I needed

🙂Good, not great

🙄It sucked