What's Happening?
At the IAB Connected Commerce Summit in New York, David Cohen, CEO of the Interactive Advertising Bureau (IAB), addressed the rapid changes in retail and commerce media driven by AI and new platforms. Cohen emphasized the need for the industry to slow down and establish firm foundations amidst the upheaval caused by pandemic-fueled growth and rising economic pressures. He highlighted the importance of fixing measurement standards and bridging silos between shopper and brand marketing. Cohen warned of the challenges posed by the continuous addition of new elements like the creator economy and AI, which overlap and disrupt existing models. He predicted a contraction in the number of commerce media networks, driven by the rise of 'agentic commerce' facilitated by AI.
Why It's Important?
The acceleration of changes in commerce media, particularly due to AI, has significant implications for the industry. As AI reshapes traditional ad-supported models, businesses must adapt to new dynamics in viewability, attribution, and saleable impressions. The potential contraction in commerce media networks could impact various sectors, including retail, banking, and travel. Establishing measurement standards and fostering collaboration between marketing disciplines are crucial for sustainable growth. The industry's ability to adapt to these changes will determine its future success and stability.
What's Next?
Cohen's call to action involves setting foundational standards and encouraging engagement from mid-tier networks in IAB activities. The industry faces a three-to-five-year horizon for widespread adoption of AI-driven commerce solutions. Stakeholders must prioritize collaboration and standardization to navigate the evolving landscape effectively. The focus will be on ensuring that the industry can mature and stabilize amidst ongoing disruptions.
