"Agentic systems will need some level of interoperability to function, but each player wants to be the thing that everybody else plugs into, which may impede adoption."
"OpenAI launched its ads business charging based on CPMs, but has shifted to a CPC model, needing to prove that the clicks generated are worth the high cost."
"LLMs are starting to bridge the gap in advertising intent, which is crucial for the success of cost-per-click ads and overall advertising effectiveness."
"Index Exchange is trying to attract smaller DSPs while remaining a sell-side company, raising questions about how it can service the buy side without disintermediation."
Agentic systems need interoperability for effective functioning, yet competition among companies may obstruct adoption. OpenAI's advertising model has shifted from CPM to CPC, necessitating proof of value in generated clicks. LLMs are bridging gaps in advertising intent, crucial for success. The lines between SSPs and DSPs are blurring, with Index Exchange attempting to attract smaller DSPs while maintaining its sell-side focus. CEO Andrew Casale's commitment to not disintermediate DSPs raises questions about the balance of servicing the buy side.
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