Hands Off My Ads
OpenAI announced to advertisers that it will be automatically updating their existing ads with what it calls “creative enhancements” starting October 30 – unless they opt out.
The Halloween-adjacent timing isn’t the only thing spooky about it.
Sure, the idea of optimizing an ad with user behavior data is nothing new. What is new is that, unless advertisers go into their settings and deliberately disable the feature, OpenAI will automatically turn on creative enhancements. And no human approval is required before serving the updated ad.
The word “enhancement” might suggest relatively minor tweaks, like changing the ad’s background color or adjusting its dimensions. But, in reality, the enhancements can change anything from the headline to the destination link.
Potentially removing human oversight from creative decisions is an interesting move from OpenAI, which has been stressing the importance of safe, relevant ads since it launched its ad platform earlier this year.
It will also be interesting to track how well the “enhanced” ads perform, assuming most advertisers don’t opt out of the new feature.
It’s “nice” that OpenAI gave advertisers advance notice, “with clear instructions on how to turn it off,” Search Engine Land writes.
Or maybe giving advertisers a way to ensure that their ads aren’t being completely rewritten and reformatted without their consent is just about the bare minimum.
Political Parlays
Gambling sponsorships have taken over sports. Now, they’re coming for the news just in time for the midterm elections.
To be fair, most of the betting partnerships news orgs have struck are with “prediction markets” Kalshi and Polymarket, which deny they’re gambling apps in the vein of sportsbooks like DraftKings or FanDuel. Although, the prediction markets also take bets on sports and partner with sports leagues.
CNBC was the first news org to partner with Kalshi to bring its prediction data into news coverage. But CBS, CNN, Fox News and The Associated Press all now have Kalshi deals. Meanwhile, Substack and The Wall Street Journal’s parent company, Dow Jones, partner with Polymarket.
The news justifies promoting prediction markets because they’re not technically gambling companies. But now, CBS is going mask off by straight up partnering with a sportsbook; its stations will carry DraftKings branding throughout their election night coverage, Status reports.
CBS denies that DraftKings will inform its election reporting in any way. So it seems the deal is solely about sportsbooks confronting growing competition from prediction markets. It’s why both sportsbooks and prediction markets have gotten more active with political lobbying, in addition to advertising.
So, if you have to see Kalshi and Polymarket promoted during election news, DraftKings wants to make sure you’re seeing its logo, too.
Sure Shot?
Basketball season is in full swing (shot?), and advertisers are scrambling to get young NBA fans’ attention.
But with the escalating pressure marketers face to prove cost efficiency against ad performance, shelling out for commercial ad space during NBA games is no longer the obvious choice, Digiday reports.
Instead, sponsorships are an increasingly popular way for brands to create associations with the NBA and its players beyond an interruptive 30-second spot. Creator deals are also growing in popularity. After all, the odds of young fans scrolling social media while watching sports are pretty high.
Brand sponsorships now account for roughly 15% of NBA revenue at $1.9 billion, according to Sportico.
One example is Ledger, a blockchain and digital security firm that inked a deal with the San Antonio Spurs last year. Ledger gets to call itself the Spurs’ official digital asset partner and slap its logos on the team’s jerseys. Apparently, the marketing works: The company says Spurs fans are 4.8 times more likely to name Ledger as a leading firm in its category and twice as likely to prefer it over competitors.
But big-ticket sports partnerships invite extra scrutiny over performance. Just ask Adidas, which spent more than $1 billion on marketing during the World Cup – and is now under pressure from investors to prove it was worth it.
But Wait! There’s More!
Seniors are growing ever more hooked on their slop-filled, scam-laden social media feeds. So their adult children are stepping in to manage their algorithms and screen time. [NY Magazine]
Walmart will open its digital doors to agents that are ostensibly browsing on behalf of people. [Adweek]
Australia will compel Apple to relent on its monopolistic App Store policies (by March 2027), in line with Europe’s Digital Markets Act. [AppleInsider]
Some publishers are trying to make their content more readable for AI. And then there’s the Writers Guild of America East, which has a tool that makes writing harder for AI to read. [Deadline]
How’s that AI bubble looking? Investors are purchasing credit default swaps in anticipation of SoftBank defaulting on its AI investments – similar to how they hedged against mortgage-backed securities in anticipation of the 2008 financial crisis. [Grace Blakeley on Substack]
Legal backlashes against US tech giants are starting to (maybe?) result in real change. [NYT]
You’re Hired!
GSTV hires Claire Wyatt, previously of TTD, as its chief growth officer. [release]
