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IAB issued its first set of standards for retail media at the beginning of December. But are these the new standards Christmas gift advertisers have been waiting for?
Not exactly.
Brands want standards to make it easier to spend across multiple retail media networks. In the absence of standardization, it makes sense for brands to spend their budgets with the biggest incumbents.
But standardization makes it easier for marketers to spend across platforms, giving smaller players a chance. The standards could benefit mid-tier retail media networks such as Kevel and CitrusAd.
However, the new IAB standards focus narrowly on defining in-store media types. For example, it establishes metrics for ad serving in brick-and-mortar locations, such as the “opportunity to see” an ad (OTS) and its slightly more precise relative, the “likelihood to see” (LTS). Just what the industry needs: a new list of three-letter acronyms.
All IAB standards are essentially voluntary. It is up to the industry to accept them or not. As AdExchanger Editor-in-Chief James Hercher explains, while no retail media network is likely to oppose standardization, some of the biggest players, such as Criteo and Walmart, are unlikely to want to force their adoption.
AI in advertising
We close out 2024 with everyone’s favorite topic: the rise of generative artificial intelligence in advertising. Associate Editor Victoria McNally asked her sources for their thoughts on AI. How will marketers evolve to use this technology in the coming year? And if you’re expecting reactions that will become the usual hype, get ready for a surprise.
Forget ChatGPT – marketers are fed up with the AI conversation revolving around chatbots.
Likewise, don’t expect every agency to accept AI-generated ads that have been automatically tailored to individual users. This stuff isn’t ready for prime time, and there’s no way to know if this degree of AI-powered ad personalization will ever be cost-effective — or performance-effective at all.
Instead of diving headfirst into AI, many marketers are dipping their toes in and testing lower-impact applications like AI-generated subject lines to surface emails.
However, marketers trust AI more every year, according to data from Advertiser Perceptions. In 2023, only one in four advertisers said they trusted AI to make campaign decisions without human oversight. But this year, half of advertisers said they trust AI without human oversight.
We discuss the implications of this growing confidence. Is it based on a good understanding of the technologies behind the trending AI tools, or are the platforms selling a BOM?
