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Will the business model of GenAI be advertising after all?

I’ve been sceptical of the rush to impute a platform economy model to GenAI firms because there’s a range of different business models being experimented with:

  • Enterprise systems linking up platform ecologies within large organisations
  • Subscription based services marketed to end users, with premium versions
  • Platform models built around app stores and distributed software
  • Platform models built around the assetization of user data

The one which has received less attention, as far as I can see, is advertising despite the fact that Meta are claiming growing success:

One thing that is giving Meta some confidence here: 1 million advertisers have used its generative AI ad tools to create more than 15 million ads in the last month. The company says generative AI ads have an 11 percent higher click-through rate and 7.6 percent higher conversion rate, suggesting that average Facebook and Instagram users are not as put off by AI imagery as many critics.

https://www.platformer.news/meta-connect-zuckerberg-orion-ray-ban-ai/?ref=platformer-newsletter

This is a bleak vision of social media platforms filled with GenAI content to keep people coming back, alongside GenAI advertising custom targeted to the precise profile generated by the GenAI content they’ve clicked on.

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