The Rise of AI and Fall of Tech Monopolies: Key Takeaways from Programmatic I/O New York 2024
AdExchanger’s Programmatic I/O New York brought together voices from across the brand, media, tech platform, publishing, and data sectors to showcase the latest trends that are shaping the future of advertising. From breaking up tech monopolies to the role of AI in marketing, industry leaders shared insights on how the advertising ecosystem is evolving. Here are Cadent + AdTheorent’s three key takeaways to keep in mind as you plan for 2025 and beyond:
1. Breaking Free from Tech Monopolies: A recurring theme throughout the conference was a push to break away from the dominance of tech giants. Experts such as Shweta Khajuria, managing director at Wolfe Research emphasized the necessity of diversifying beyond the major players like Google. In her session, Khajuria explained the potential implications of Google spinning off its SSP or DSP. Based on financial models, if Google lost 40% of its network business, it would only experience a .3% dilution in earnings per share (EPS) – 60% would lead to a 1.8% dilution. This highlights that while the DOJ trial’s outcome may cause the company a slight financial dip, it would open significant opportunities for smaller companies to innovate and compete.
Key Takeaway: It’s time to embrace a more decentralized internet and advertising ecosystem, where companies can operate without being overly dependent on monopolistic tech giants.
2. AI is a Tool for Innovation, Not for Replacing Talent: AI was the focal point in many discussions, but a consensus emerged around its role: AI should be leveraged to handle repetitive tasks, allowing marketers to focus on creativity and strategy. Cadent's Chief Technology Officer, Eoin Townsend believes, “It is about using AI to solve the right problems and letting marketers – agencies, brands and publishers – focus on the fun problems.” In Forrester's "Will AI Agents Steal Your Marketing Job?" session, the emphasis was placed on AI as a tool to enhance human capabilities, not replace them. Similarly, StackAdapt's session on Generative AI showcased the potential for AI-driven creativity, but with a clear distinction that it should complement rather than dominate human work.
Key Takeaway: AI will underpin everything we do, but it should free up time for marketers to focus on strategic, creative work instead of technical integrations and other menial tasks.
3. Privacy Regulation Poses a Challenge and an Opportunity: In today’s programmatic advertising ecosystem, advertisers are challenged with adhering to strict and inconstant privacy laws while continuing to drive campaign performance and ROI. By leveraging solutions that use machine learning and innovative audience approaches, programmatic advertisers can still drive measurable business outcomes while staying ID-independent and privacy compliant. In a panel led by AdTheorent’s Chief Revenue Officer, Bill Todd, Devyn McHugh, Quigley-Simpson’s Director of Programmatic explains, “When we think about AI and privacy, most people are very wary about how AI could infringe on our privacy rights as consumers, but in advertising, it actually helps protect consumers because it allows the advertiser to model user behavior into scalable audiences instead of tracking an individual’s online actions across all of their devices. It also helps advertisers stay dynamic with those audiences with the ability to auto-optimize in real time and receive relevant insights.”
Key Takeaway: As privacy continues to evolve, it’s imperative for marketers to work with partners that stay ahead of the curve to ensure compliance in regulated industries and with state laws.
Programmatic I/O made it clear that the advertising world is shifting faster than any of us could have predicted. As AI becomes a fundamental tool, and as the industry moves away from tech monopolies, there’s a growing need for creativity, innovation, flexibility and adaptability. Those who embrace these changes will thrive in the next phase of programmatic advertising.
If you are interested in speaking with the Cadent + AdTheorent team, get in touch.