It won’t be long until we start to see crazy high performing ad formats in LLMs. There will be a massive arbitrage opportunity like when Facebook ads came out.
But it won’t require much work from media buyers, it will be fully automated. You set your budget then targeting, creative, etc are all done for you and you get chat based updates like working with an expert agency.
Ad formats will be very native / organic. I could envision something like what Facebook tried to do with ads in Messenger but contextual to the conversation you’re having.
Micro-interactions / conversations, permission based “want to see a demo of this? I’ve seen good reviews…” like recommendations from a friend embedded in your chat. You may not even know it’s an ad.
Imagine the relevance and targeting when an AI has so much context on your conversations, preferences, etc.
Actions could also be embedded in ad units like browser use or something. It costs more tokens but you’ll pay a higher CPM or CPC etc when an agent opens the browser and shows someone around. You won’t even have to pull out your credit card, checkout will be seamless.
Everything is an ad network.