Home Data-Driven Thinking AdCP And The Math Of Agentic AI: Building For Today’s Economics, Not Tomorrow’s Dreams

AdCP And The Math Of Agentic AI: Building For Today’s Economics, Not Tomorrow’s Dreams

SHARE:
Nick Ross, Ph.D, Co-Founder and CTO of Classify

While the promise of agentic AI in advertising is intoxicating, autonomous systems optimizing campaigns and making real-time adjustments still face a sobering reality: The economics don’t work for everything – yet.

Let’s look beyond the generalized AI hype to a more actionable and immediate trend: using Model Context Protocol (MCP) and its advertising-focused cousin, Ad Context Protocol (AdCP) as critical accessibility tools. 

Understanding where AI agents make financial sense today versus where they remain an expensive dream is the difference between building a sustainable competitive advantage and burning through your margins in pursuit of buzzwords.

For ad tech, brands and agencies, this isn’t just about understanding the latest acronyms; it’s about how to apply these technologies now for actionable advantages. MCP/AdCP can provide a fresh perspective, allowing you to unlock genuine value and drive concrete results in today’s rapidly evolving advertising landscape.

The economics are in constant flux

The cost structure of AI is shifting beneath our feet. Token prices fluctuate. Model quality improves monthly. What was economically unviable six months ago might be table stakes today, while what seems affordable now could become obsolete next quarter.

This volatility cascades directly into the economics of agentic implementations. Every time you deploy an AI agent to analyze campaign data, optimize creative or evaluate audience segments, you’re making a bet on cost structure.

Use these tools without careful consideration of where and how you apply them, and you’ll find yourself eating the profitability of your marketing budget one token at a time.

Drawing the line on agent economics in ad tech

Today, we’re one integration step away from economically viable campaign management agents. Setting up campaigns, evaluating performance, making optimization decisions – these workflows require relatively small amounts of AI computation relative to their value. The cost of applying state-of-the-art models at this scale adds minimally to campaign overhead while potentially saving substantial labor costs.

Run the numbers: If an agent can automate campaign setup and ongoing optimization, you’re talking about dozens or hundreds of LLM calls per campaign. Even at premium model pricing, that’s negligible compared to the human hours you’d otherwise spend.

Subscribe

AdExchanger Daily

Get our editors’ roundup delivered to your inbox every weekday.

But here’s where it gets interesting. We’re still one economic (or technical) step away from using near-SOTA models at deeper analytical levels on a bid, placement or custom content level.

Analyzing an entire webpage (roughly 500 words) through a commercial LLM at $1 per million tokens costs approximately $0.65 per eCPM when applied to agentically analyze data for specific campaigns. That’s a material cost that reshapes the ROI of a lot of campaigns.

Doing this across every impression you’re evaluating or at a campaign level for every audience segment and suddenly your margins evaporate.

What MCP enables today (and what it doesn’t)

This is where Model Context Protocol becomes essential, not as a silver bullet but as a pragmatic bridge.

MCP enablement allows for the application of AI agents to high-value, relatively low-frequency tasks today. Campaign setup and management? Absolutely. Performance reporting and anomaly detection? Makes perfect sense. Strategic recommendations based on aggregated data? Go for it.

What MCP doesn’t do is magically make computationally intensive, high-frequency analysis economically viable. It won’t suddenly make it affordable to run SOTA models against every ad impression or analyze every user session in real time.

Understanding this distinction is crucial. MCP gives you the infrastructure to connect your agents to your data and systems. It doesn’t change the fundamental economics of token consumption.

The pragmatic application of agentic AI 

The marketers who will succeed with agentic AI aren’t the ones deploying it everywhere; they’re the ones deploying it strategically.

Start by mapping your workflows to their economic viability. Where can agents create value with minimal computational overhead? Campaign management, performance reporting, strategic analysis – these are your immediate opportunities.

Then, identify the workflows where the economics don’t yet work. Deep content analysis, real-time impression-level optimization, granular user behavior scoring – these might need to wait for the next wave of model efficiency or pricing changes.

Build your MCP integrations to support the viable use cases today while maintaining flexibility to expand as economics improve. Don’t architect yourself into a corner by assuming current constraints are permanent.

The currency of patience

Perhaps the most undervalued skill in this moment is knowing when to wait.

The history of tech companies is littered with companies that were right about the future but wrong about the timing (pets.com, anyone?). They built for economics that didn’t exist yet and burned through capital waiting for the world to catch up.

Agentic AI in advertising will be transformative. The question isn’t whether it will reshape how we plan, execute and optimize campaigns. The question is when the economics align sufficiently to make specific implementations profitable rather than just impressive.

MCP gives you the ability to start building today where the math works. It positions you to expand tomorrow when new capabilities become viable. But it requires discipline to resist the temptation to deploy agents everywhere simply because you can.

Data-Driven Thinking” is written by members of the media community and contains fresh ideas on the digital revolution in media.

Follow Classify and AdExchanger on LinkedIn.

Must Read

How AudienceMix Is Mixing Up The Data Sales Business

AudienceMix, a new curation startup, aims to make it more cost effective to mix and match different audience segments using only the data brands need to execute their campaigns.

Broadsign Acquires Place Exchange As The DOOH Category Hits Its Stride

On Tuesday, digital out-of-home (DOOH) ad tech startup Place Exchange was acquired by Broadsign, another out-of-home SSP.

Meta’s Ad Platform Is Going Haywire In Time For The Holidays (Again)

For the uninitiated, “Glitchmas” is our name for what’s become an annual tradition when, from between roughly late October through November, Meta’s ad platform just seems to go bonkers.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters
Monopoly Man looks on at the DOJ vs. Google ad tech antitrust trial (comic).

Closing Arguments Are Done In The US v. Google Ad Tech Case

The publisher-focused DOJ v. Google ad tech antitrust trial is finished. A judge will now decide the fate of Google’s sell-side ad tech business.

Wall Street Wants To Know What The Programmatic Drama Is About

Competitive tensions and ad tech drama have flared all year. And this drama has rippled out into the investor circle, as evident from a slew of recent ad tech company earnings reports.

Comic: Always Be Paddling

Omnicom Allegedly Pivoted A Chunk Of Its Q3 Spend From The Trade Desk To Amazon

Two sources at ad tech platforms that observe programmatic bidding patterns said they’ve seen Omnicom agencies shifting spend from The Trade Desk to Amazon DSP in Q3. The Trade Desk denies any such shift.