From Adweek · Mark Stenberg · · 2m
AI Pushes Advertising Back to Physical World
AI shifts ad focus from digital to physical spaces as trust erodes online.
In brief
AI shifts ad focus from digital to physical spaces as trust erodes online. AI-driven distrust of online content and ad bypass tools are making physical advertising more valuable to brands while increasing urban ad clutter. Originally reported by Adweek.
Out-of-home advertising gains traction
U.S. out-of-home advertising revenue grew 10.7% year over year in Q2, reaching a record $3.16 billion.
Digital out-of-home surges
Digital-out-of-home revenue grew 18.5% year over year, accounting for nearly 40% of the category’s total.
AI erodes online trust
87% of U.S. consumers say generative AI makes it harder to distinguish fact from fiction online.
AI reduces need for web visits
Answer engines like ChatGPT bypass websites, threatening referral traffic for ad-supported platforms.
Physical space becomes ad inventory
Ride shares, airlines, grocery stores, and retailers can now turn physical spaces into ad inventory.
New York subway ad clutter
New York Times journalist Ezra Klein calls subway and bus advertising 'sad' for newcomers to NYC.
M.T.A. advertising revenue low
The M.T.A receives only about 1% of its operating revenue from advertising.
AI shifts ad value back to physical
As AI makes online content less trustworthy, physical spaces become more valuable for advertisers.
Consumer can't opt out of physical ads
Unlike digital, consumers cannot close subway platforms or avoid physical ad spaces.
AI pushes ad value back to physical
AI-driven distrust of online content and ad bypass tools are making physical advertising more valuable to brands.
Physical ad clutter grows
Public spaces increasingly give way to kiosks and screens featuring constant advertising.
AI changes ad landscape
The rise of AI has unleashed low-quality content whose provenance becomes harder to discern.
AI threatens ad revenue
OpenWeb, an adtech firm, requested insolvency protections due to AI search contraction.
Game industry ad growth
EA and Netflix are launching ad platforms to convert streaming audiences into game enthusiasts.
In-game ads emerging
Wes Morton predicts in-game programmatic advertising could become the biggest ad medium in five years.
Physical ad space limited
As physical ad space grows, consumers have fewer ways to opt out of advertising.
The headline
AI-driven distrust of online content and ad bypass tools are making physical advertising more valuable to brands while increasing urban ad clutter.
