The AI-Inflected Future of Ads with OpenAds Co-Founder Michael Bishop
Feb 5, 2025
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Michael Bishop, co-founder and CTO of OpenAds, an innovative AI-driven ad tech startup, shares insights on the future of advertising. He discusses how AI can personalize ads in real time, challenging traditional models like Google’s. The conversation highlights the massive opportunity within AI-driven search ads and the critical need for brands to rethink ad metrics. Bishop also explores the entrepreneurial mindset needed to tackle significant opportunities, urging tech founders to embrace bold visions that can create societal change.
AI is transforming static ads into real-time personalized experiences, significantly increasing click-through rates and user engagement.
The evolving advertising landscape is marked by competition from AI-driven entities, offering opportunities for new players to disrupt traditional paradigms.
There is a pressing need for improved advertising metrics that emphasize creative quality and user experience to enhance campaign effectiveness.
Deep dives
Innovative Advertising through AI
The podcast delves into how artificial intelligence is revolutionizing advertising, particularly through the creation of unique ads tailored to individual impressions. Unlike traditional dynamic creative optimization, which relies on a limited number of pre-designed ads, this new approach leverages AI's capabilities to generate completely customized advertisements in real-time. This innovative technique was made feasible by advancements in large language models, which enable more sophisticated ad creations that reflect individual contexts and consumer behaviors. The result is a more engaging and relevant advertising experience that has been shown to dramatically increase click-through rates.
Diverse Applications of Generative Ads
Generative ads can manifest in various contexts, including direct use on generative AI platforms and within publisher content, which can potentially become more dynamic as AI evolves. The discussion highlights the exciting opportunities arising from integrating AI into different advertising platforms, as well as the ability to incorporate branded assets and marketing collateral directly into the ads. This adaptability allows advertisers to connect more deeply with consumers in a personalized manner, enhancing user engagement and satisfaction. Additionally, the potential for retail media and e-commerce integration shows the expansive reach of generative advertising technology.
Shift in Ad Tech Dynamics
The podcast emphasizes the ongoing platform and technological shifts in ad tech, marked by a gradual decline in Google's market share and emerging competition from AI-driven entities. As generative AI continues to gain traction, it allows for innovative approaches to ad execution that were previously unattainable, thus redefining what can be achieved in the advertising industry. Participants note that the intersection of these shifts provides fertile ground for new players to emerge and disrupt traditional advertising paradigms. This change opens up numerous possibilities for better efficiency and targeting, ultimately reshaping the future landscape of digital marketing.
Ad Quality and Measurement Improvement
A significant topic discussed is the necessity for improved metrics in advertising, moving beyond outdated methods such as last-click attribution and CPM. There's a call for a more comprehensive approach that factors in creative quality and user experience to help advertisers achieve better outcomes. The podcast argues for the establishment of a new standard that emphasizes real engagement and assists brands in understanding the true value of their ad placements. By refining these measurement techniques, brands can align their ad expenditures more closely with actual consumer interactions, ultimately creating a more effective advertising ecosystem.
The Future Role of Ad Agencies
The conversation reveals how the role of advertising agencies may evolve as AI technologies become more integrated into the creative process. Agencies are expected to become more technical and adept at utilizing AI to forge custom experiences while still providing high-level creative strategy. This balance allows for rapid iteration of personalized content while ensuring that quality and brand voice remain intact. The panel discusses how the future landscape will necessitate that agencies adapt to and embrace these evolving tools in order to stay relevant and effectively serve clients.
OpenAds co-founder and CTO Michael Bishop joins Eric Franchi and Joe Zappa to discuss how AI will transform static ads into personalized experiences, the multi-hundred-billion-dollar AI "search" ad opportunity, the challenges and advantages of building an adtech AI startup, and the irrational, gut-oriented disposition tech entrepreneurs need to go after huge but hard opportunities.
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