TechCrunch Startup News Koah raises $5M to bring ads into AI apps
Sep 8, 2025
Discover how Koah, a startup fresh off a $5 million funding round, plans to revolutionize advertising in AI applications. Co-founder Nic Baird discusses the transformation of ad experiences, particularly within AI chatbots. The conversation dives into the potential for monetization in consumer AI tools and the innovative strategies Koah is developing to enhance user engagement and ad effectiveness, especially in global markets.
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Ads Will Be Inevitable In AI Chats
- Nick Baird argues ads will be inevitable in AI chat apps beyond affluent early adopters.
- Ads can enable global-scale monetization where subscriptions won't work for many users.
Early Partners Saw Immediate Revenue
- Koa already serves ads in apps like Lucia, Heal, Liner, and Deep AI and works with advertisers like Upwork and Skillshare.
- Early partners reportedly earned about $10,000 in their first 30 days on the platform.
Contextual In-Chat Ads Can Be Effective
- Koa places sponsored content in-chat at relevant moments to match user queries with advertisers.
- The company claims CTRs around 7.5% and less negative impact on engagement than typical ad formats.