The world of media buying is abuzz with the potential of AI, but the reality is a delicate balance between promise and peril. This Media Buying Briefing, a weekly digest for Digiday+ members, delves into the intricate relationship between AI and the media agency landscape, as discussed at the recent Programmatic Marketing Summit in New Orleans. The summit's Town Hall discussion, held under Chatham House rules, revealed a fascinating yet complex interplay between AI and programmatic advertising.
The Promise of AI in Media Buying:
AI has already made significant inroads into media buying, particularly in machine learning algorithms for campaign optimizations. However, the real excitement lies in the potential of general AI (gen AI) and its ability to create autonomy through ideation. This evolution is transforming the industry, but it's also a source of confusion. The challenge is to harness gen AI's efficiency in media mix models planning and automation, while ensuring transparency and understanding its limitations.
The Perils of Opaqueness:
But here's where it gets controversial. Agencies are concerned about the lack of transparency in AI-driven pricing and performance optimizations. The fear is that AI is being used as a smoke screen, with companies like The Trade Desk's Kokai asking for trust without providing full disclosure. This opaqueness could lead to less control for agencies and more errors in campaign management.
AI's Role in the Agency World:
The consensus among agency executives is that AI agents should be kept away from direct transactions between buyers and sellers. Instead, they should assist in pre- and post-transaction tasks, such as campaign planning and post-campaign data organization. However, this requires enhanced training for agency employees, not just in AI tools but also in the fundamentals of programmatic advertising workflows, to ensure effective supervision of AI.
The Human-AI Collaboration:
AI can be a powerful tool, but it's not without its challenges. One executive likened AI to a smart intern who can handle menial tasks quickly but needs supervision and guidance from experienced 'older models'. Another compared it to a six-year-old child who wants to prove their understanding, but may not always be right. The key is to use AI for specific tasks with defined parameters, ensuring it doesn't 'hallucinate' due to outdated information.
The Future of Programmatic Media:
Looking ahead, programmatic partners are developing tools to automate media planning, but integration remains a challenge. The dream is a one-click solution for building and optimizing media plans, but it's not yet a reality. The fear of AI errors, especially in financial matters, is a significant concern, as LLMs are known to hallucinate due to their underlying architecture design.
Retail Media Networks and the Holiday Season:
Retail media networks and challenger social platforms have an opportunity to capture more holiday ad dollars in 2026, according to Kantar research. Retailers are focusing on in-store/omnichannel capabilities and off-site data monetization to compete with Amazon. Brands are willing to invest more in retail media networks with standardized measurement, but retailers need to align with these standards to build trust.
Industry News and Insights:
- Omnicom's acquisition of Interpublic Group led to layoffs and public backlash, as well as the closure of IPG's Magna unit and the departure of Eileen Kiernan.
- Havas acquired Bearded Kitten and Unnest to enhance its tech and data capabilities, while Dentsu and Monks made key appointments in their Media divisions.
- The Trade Desk is adjusting its pricing strategy due to pressure from rival DSPs, and Criteo is rebranding itself as an AI-powered commerce media platform.
- The creator economy is expected to expand significantly in 2026, according to a Digiday graphic and stat-driven analysis.
The AI Revolution in Marketing:
Tony Owens, CEO of Amperity, highlights a crucial point about AI in marketing: 'AI only works when the underlying customer data is unified, governed, and understood.' As the industry grapples with AI's potential, the key to success may lie in understanding and managing customer data effectively. This raises questions about the future of AI in media buying: Is the industry ready to embrace AI fully, or are we still learning to walk before we run?
What are your thoughts on the role of AI in media buying? Do you think agencies are prepared for the challenges and opportunities ahead? Share your insights and let's continue the conversation.
