This news isn’t about new partnerships or ad spend figures. It’s about your wallet. Specifically, how your online advertising dollars are being shuffled, sometimes by the same companies you thought were at each other’s throats. And that a platform you probably use daily for quick entertainment is now a bigger ad draw than your fancy smart TV. Think about that the next time you’re scrolling.
Frenemies United: The Programmatic Paradox
So, what’s happening? Ad tech, a space usually defined by cutthroat competition, is suddenly embracing alliances. We’re talking about The Trade Desk embedding its technology into other platforms, a move previously unheard of. Rakuten and Impact, both in the affiliate game, are now strategically partnered. And Yahoo? It’s got a dedicated workspace inside Kochava’s product. This isn’t collaboration; it’s a desperate scramble for market share, masked as innovation.
Kochava CEO Charles Manning spins it as deduplicating tooling. “We’re going to see a deduplication of tooling by teams,” he claims, “where things are coming together, as opposed to [being] so splintered and separated.” Sounds nice. It sounds like a unified vision. But really, it’s about survival. Companies are realizing they can’t do it all alone, or perhaps they can’t afford to keep fighting everyone.
This trend extends beyond direct competitors. SSPs are eyeing data marketplaces, and cloud platforms are dabbling in bidding – areas traditionally owned by DSPs. It’s a free-for-all. Expect more of these odd couples. The lines are blurring, not because of a grand vision, but because the old walls are crumbling. My take? This isn’t about efficiency; it’s about leveraging each other’s weaknesses to survive. It’s the programmatic equivalent of a divorce settlement.
The Social Media Takeover: CTV’s Slow Decline
Now, let’s talk about where your advertising money is actually going. The IAB projects US digital ad spend to hit $80 billion. Big number. But the growth driver? Not your beloved connected TV. Nope. It’s social video.
Social video ad spend is jumping 13% YOY, outpacing CTV’s 11%. Why? AI-driven personalization, sure. But more importantly, performance. TV ads? They’re a shot in the dark. You blast it out, hoping someone sees it and then, maybe, maybe, goes online to buy it. Social video ads? They’re direct. One-to-one. Attribution is simpler. Shoppable ads on CTV are still a punchline. Viewers aren’t impulse-buying sofas from their living rooms. And let’s not even start on CTV targeting – it’s a mess due to IP degradation.
Even YouTube, which pitches itself as TV during upfronts, is happy to be classified as social video. Talk about having your cake and eating it too. This duality highlights a strategic play: capitalize on the perceived premium of TV while benefiting from the performance metrics of social. It’s clever. Or maybe just greedy.
The Chatbot App Ghost Town
What about those flashy AI chatbot integrations everyone was hyping? Consumer-facing apps connecting ChatGPT or Claude to brands like Target, Walmart, and Uber. Sounds futuristic, right? According to Modern Retail, crickets. Or at least, very quiet crickets.
Adoption and conversion are abysmal. Why? Discoverability is nonexistent. You need the retailer’s app. You need the chatbot app. You need to know they can even talk to each other. And then, sometimes, you need both running at the same time. It’s an obstacle course. Most consumers just want to buy their groceries, not solve a tech puzzle.
But they’ll keep making them. It’s cheap. It’s a way to play with AI. And Publicis Groupe’s Jason Goldberg sees them as glorified focus groups. Collecting data. Informing the customer journey. Sure. It’s better than NFTs, I’ll give them that. At least there’s a slight use case beyond speculation.
Meanwhile, Elsewhere in the Ad Tech Abyss
The FTC has decided Media Matters is no longer a target. Good for them. The AI chip shortage is making internet archiving a nightmare. Europe’s age verification laws are a privacy minefield. Meta’s using “AI bone structure analysis” – definitely not facial recognition, wink wink – to spot child exploitation images. Apparently, Kendall Roy might buy Vaulter. Viant finished its TVision acquisition. And a slew of execs have been hired and promoted across NextRoll, Marketbridge, and TripleLift. Business as usual, I guess.
Will These AI Chatbot Apps Ever Take Off?
It’s a long shot. The current user experience is a barrier. Consumers need a reason – a significant one – to navigate the complex setup. Brands are essentially relying on users to stumble upon these integrations and have the patience of a saint. Until the discoverability problem is solved and the value proposition becomes crystal clear, these apps will likely remain niche novelties.
What’s the Big Deal with Social Video Outpacing CTV?
It signals a significant shift in where ad dollars are flowing and why. Social video offers more direct attribution and better performance metrics, which are increasingly important to advertisers. CTV, despite its perceived reach, is struggling with targeting accuracy and direct conversion capabilities, making it a less attractive bet for performance-focused campaigns. The AI push is more effective in the one-to-one environment of social media than the broader, less controlled environment of traditional TV viewing.
🧬 Related Insights
- Read more: Horizon’s Campanelli Slams CTV’s ‘Extra Step’ to Real Performance
- Read more: Agentic Commerce Will Clog Retail Media’s Data Pipes – And Reshape Ad Targeting Forever
Frequently Asked Questions
What does the Yahoo/Kochava integration mean for ad operations teams?
It means teams can potentially use generative AI tools within a single, dedicated workspace, reducing duplicated efforts and streamlining workflows for ad ops, media buyers, and creative teams.
Why is social video growing faster than Connected TV in ad spend?
Social video benefits from one-to-one targeting and straightforward attribution, leading to better performance metrics for advertisers, unlike CTV where direct purchasing from the TV is less common and targeting is hampered by issues like IP degradation.
Are consumer-facing AI chatbot apps with brands actually being used?
Adoption and conversion rates are currently low due to poor discoverability and a complex user setup. While companies are experimenting, widespread consumer use is not yet evident.
