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Nov 6, 2025 - AI Shifting Advertising Industry Power to Tech Platforms

• AI is reconfiguring the advertising ecosystem in favor of large digital platforms, according to marketing consultancy Madison & Wall (M&W). US ad spending is expected to rise more than 8.5% this year, largely driven by AI-enabled ad targeting, creative tools, and audience engagement. Facebook, Google, and Amazon are projected to capture over 56% of the US ad market this year, per M&W, a 4% increase from two years ago. AI-driven improvements, such as enhanced recommendation engines that boost time on-site (Facebook reported a 5% increase in time spent in Q3) and generative-AI ad-creation tools, are enabling technology companies to increase ad volume, optimize production costs, and improve demographic targeting. At the same time, smaller media players and independent ad agencies face the squeeze: when platforms become more efficient and attractive to advertisers, those tech firms pull more ad dollars in-house, reducing the role of traditional agencies.
• AI search is shifting how brands compete for visibility, as search models increasingly summarize and synthesize responses instead of simply linking to ranked pages. According to StatCounter data, Google’s global market share dropped in April to its lowest since 2013, at 89.65%, while US share was 86.71%, with Bing at 7.5%. Google reports its AI Overviews feature has reached 1.5 billion monthly users. Semrush estimated ChatGPT processes 37.5 million search-style queries per day. Meanwhile, eMarketer forecasts AI agents may reduce ad exposure by 38% in discovery, 47% in consideration, and 30% at conversion. As a result, brands can no longer rely solely on keyword rankings - they must earn citations within AI responses, build authority across trusted sources, and craft content that AI systems can reference to maintain relevance and visibility in this evolving search landscape.

• A recent survey by podcast advertising agency Oxford Road shows that nearly $1 billion in potential ad spending is being held back from the format due to inconsistent measurement metrics across platforms. According to the survey, 71% of advertisers find current analytics inadequate for assessing campaign performance, especially when integrating video and cross-platform strategies. More than half of respondents reported difficulty justifying ad budgets without reliable data. Additionally, 62% said they’re hesitant to increase spending on podcasts because of the lack of standardization. Despite podcasts’ popularity and effectiveness in reaching highly engaged niche audiences, advertisers remain cautious and commit only minimal budgets. The survey also found that 48% of brands are exploring podcast advertising but are waiting for better measurement tools. Industry experts emphasize that developing standardized, clearer analytics is critical to unlocking the full potential of podcast advertising and converting hesitant ad dollars into active spending.
• AI is reshaping advertising but the regulations to govern its use are still catching up as states start proposing their own AI rules. The industry faces a patchwork of rules and standards that could complicate compliance and slow innovation, according to the Interactive Advertising Bureau. Instead of waiting for federal mandates, industry experts argue that advertisers should adopt responsible practices now; such as bias checks, human oversight, and clear data governance; to demonstrate accountability with AI. Organizations like the American Association of Advertising Agencies stress that voluntary frameworks and third-party certifications, including those from ISO and the Alliance for Audited Media, can help validate ethical AI use. Setting standards allows brands to maintain trust and reduce regulatory risk in an era where transparency and fairness are becoming as important as performance metrics.