{"id":4422342,"date":"2025-12-12T21:22:38","date_gmt":"2025-12-12T19:22:38","guid":{"rendered":"https:\/\/www.deptagency.com\/insight\/the-coming-wave-of-llm-advertising-and-how-to-get-ahead-of-it\/"},"modified":"2026-01-12T15:22:30","modified_gmt":"2026-01-12T13:22:30","slug":"the-coming-wave-of-llm-advertising-and-how-to-get-ahead-of-it","status":"publish","type":"article","link":"https:\/\/www.deptagency.com\/en-nl\/insight\/the-coming-wave-of-llm-advertising-and-how-to-get-ahead-of-it\/","title":{"rendered":"The coming wave of LLM advertising (and how to get ahead of it)"},"content":{"rendered":"
\n\t\n\t\t\n\t\t\t<\/mask><\/g><\/svg>\t\t\t\n\t\t\t\tInsights\t\t\t<\/span>\n\t\t<\/div>\n\t<\/div>\n\tThe coming wave of LLM advertising (and how to get ahead of it)<\/h1>
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\n\t\tJoseph Kerschbaum\t\t
\n\t\tSVP, Search & Growth Labs\n\t\t\t<\/div>\n<\/div>\n\t
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\n\t\t\t\t\n\t\t\t\t\tDate\t\t\t\t<\/span>\n\t\t\t\t\n\t\t\t\t\tDecember 12, 2025\t\t\t\t<\/span>\n\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\n<\/div>\n\n\n\tEvery digital platform that reaches massive scale eventually faces the same gravitational pull: monetisation. <\/p>\n\tNot if, but how.

For conversational AI platforms, that question is especially delicate. These tools are built on an implicit promise to users: I am neutral. I am objective. You can trust my answers.<\/em>

Even when you pay for subscriptions, you\u2019re really paying for the feeling of objectivity.

So when ads inevitably arrive, these platforms must pay a Trust Tax, i.e., the cost of preserving user belief in the system\u2019s integrity. And that pressure is doing something interesting: it\u2019s pushing companies to finally solve one of digital advertising\u2019s biggest sticking points: how to make monetisation additive rather than disruptive.

If the major LLMs get this right, marketers stand to benefit from a more transparent, higher-performing, and far more accountable digital ecosystem.<\/p><\/div>\n\t\n\t<\/div>\n\n\n\tThe financial reality behind the shift<\/h2>\n\tHere\u2019s the simple truth: running millions of free-tier AI users on extremely expensive compute is not a sustainable business model. Subscriptions help, but they don\u2019t close the gap.

Eventually, free users must become revenue-generating. In the digital economy, if you\u2019re not paying for the product\u2026 you are the product.

And platforms aren\u2019t waiting around. They\u2019re already laying the groundwork for what an ad-supported AI ecosystem will need.

New interfaces = new real estate<\/strong>
Chat-only layouts are giving way to sidebars, cards, maps, stock tickers, and structured result formats. These aren\u2019t just UX improvements, they\u2019re the containers into which future ads will naturally fit.

The unseen infrastructure build-out<\/strong>
Behind the scenes, platforms must assemble the same machinery that powers modern digital advertising, including real-time bidding, fraud detection, and attribution\/measurement.\u00a0The current \u201cquiet period\u201d in the market is a strategic reset. LLMs are prioritising product quality while they build the massive backend needed to support responsible monetisation.<\/p><\/div>\n\t\n\t<\/div>\n\n\n\tPaid placements can improve recommendations<\/h2>\n\tThe upside of all this is that paid placements may actually make AI product recommendations better.

LLM-generated suggestions today can be:<\/p>\n\n\t
  • Too obscure<\/li>
  • Inconsistent<\/li>
  • Outdated<\/li>
  • Or simply hallucinated<\/li><\/ul>\n\nPaid placements introduce a sometimes-missing ingredient: real-world validation.

    Quality signals<\/strong>
    When a brand pays for placement, especially in a high-trust environment like conversational AI, it\u2019s implicitly vouching for its product. That alone raises the bar.

    Smarter ad models<\/strong>
    Future formats won\u2019t be cluttered or spammy. We predict something like:<\/p>\n\n\n\t
  • One or two sponsored options<\/li>
  • Filtered by performance signals, not just bid<\/li>
  • Ranked by satisfaction, relevance, and low return rates<\/li><\/ul>\n\nThat\u2019s a world where advertising truly improves outcomes.<\/p>\n<\/div>\n\t\n\t<\/div>\n\n\n\t\n\t\t\t\t\t\n\t\t\t\n\tCommerce is becoming the conversion engine<\/h2>\n\tConversational AI is becoming a true intermediary that can support, guide, and even close a sale. Whether the revenue model leans toward commissions or auctions, the economic truth remains: attention is scarce. Demand is high. The highest-quality (or highest-paying) options rise first.

    This is no different from search, marketplaces, and social feeds\u2026 except now the \u201csurface area\u201d for commerce is conversational, contextual, and deeply user-driven.<\/p><\/div><\/div>\n\n\n\tWhat brands should be doing now\u00a0<\/h2>\n\tThe platforms are racing to build responsible monetisation models. While they do, brands have a rare runway to prepare. Here\u2019s where to focus:

    1. Invest in GEO (<\/strong>Generative Engine Optimisation<\/strong><\/a>)<\/strong>
    AI systems need structured, intelligible content. Clear product descriptions, documented specs, authoritative copy, and consistent metadata make it easier for LLMs to understand\u2014and surface\u2014your brand.

    2. Elevate product feed quality<\/strong>
    Your product feed is becoming the single most important input for AI-driven commerce. Accurate titles, clean attributes, strong imagery, correct pricing\u2014that\u2019s what determines whether your product is recommended or ignored.

    3. Lock in distribution early<\/strong>
    When AI platforms formally launch ad programs, early integrations will be the ones that scale first. Now is the time to strengthen your partnerships with key commerce and retail tech platforms.

    4. Optimise for trust, not tricks<\/strong>
    AI recommendations feel authoritative to users. That means:
    Overpromising will backfire, poor reviews and high return rates will hurt ranking, and authenticity becomes a competitive advantage.

    5. Build for adaptability<\/strong>
    We are in a rapid-iteration era. This isn\u2019t the moment for rigid strategies. Create systems that support continuous testing and fast pivots.<\/p><\/div>\n\t\n\t<\/div>\n\n\n\tTreat advertising as a feature, not a compromise<\/h2>\n\tThe next phase of competition in conversational AI isn\u2019t about who monetises first. It\u2019s about who monetises well.

    Paid placements are not the enemy. Bad paid placements are.

    Brands must treat ads as a feature to be thoughtfully designed, optimised, and held to the highest standard of user trust.

    For trustworthy brands, this moment is a gift. If you focus on data quality, trust signals, and strategic readiness now, you\u2019ll be positioned to lead in an     AI-native commerce ecosystem<\/a> that\u2019s more accountable than anything we\u2019ve seen before.<\/p><\/div>\n\t\n\t<\/div>\n\n
    \n\tON OUR MIND<\/span><\/span><\/h2>\n\tVIEW ALL INSIGHTS<\/a>\n\t\n\t\t\n\t\t\t
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