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As more surfaces become ad inventory, the economics get complicated
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Ads have broken containment.
They’re no longer confined to TV commercial breaks, billboards and magazine pages. Brands are increasingly integrating ads in between pictures of friends on social media, in ChatGPT search results, smart refrigerator screens and even car dashboards.
As brands and publishers turn seemingly everything into ad inventory, the question becomes: How much advertising will shoppers tolerate before the value exchange starts to break down?
That’s the question at the heart of this week’s Digiday Podcast episode with hosts Tim Peterson and Kimeko McCoy.
It used to be that shoppers paid for a product or service and owned it outright. For example, Netflix launched as an ad-free streaming channel. Users paid for the subscription in exchange for content without ads.
That social contract has since been upended. Now, Netflix’s basic subscription comes with ads. Last month, BMW owners saw ads for Spider-Man: Brand New Day on their dashboards, according to Th...