The traditional marketing funnel of discovery, consideration, and conversion is being condensed. AI engines handle all three stages within a single conversational interface, moving the customer journey into a "black box" away from brand-owned websites.

As users delegate purchasing and research to AI agents, brands will lose control over the buyer's journey. Websites must be optimized for agent-to-agent communication, not just human interaction, as AI assistants will find, compare, and even purchase products autonomously.

AI enables "merchandising" in real time, creating bespoke landing pages that perfectly match the angle of a specific ad. This goes beyond A/B testing, allowing brands to build a complete funnel with tailored proof points, offers, and objection handling that directly corresponds to the ad creative a customer just saw.

Conversational ads offer an unprecedented one-on-one channel for brands to interact with customers at scale. The resulting data—customer questions, complaints, and feedback—is a goldmine for product development and other business functions, potentially exceeding the value of immediate customer acquisition.

Unlike a search engine's list of results, chatbots provide one definitive answer. This creates a massive user experience challenge for inserting ads. The winner in chatbot advertising won't just have the best targeting, but will solve how to natively integrate sponsored content without disrupting the conversational flow.

Unlike search ads that target keywords, ChatGPT ads will target a user's intent inferred from a conversation. The system essentially qualifies the user's needs *before* showing an ad, resulting in traffic that is already in a buying mindset and more likely to convert.

AI is making buyer journeys non-linear and compressed. Instead of a linear funnel, GTM strategy must shift to a continuous, customer-centric "flywheel" model. Buyers conduct deep research upfront, making direct sales engagement optional for some and requiring an always-on, value-first approach.

The rise of AI shopping agents acting on behalf of consumers will make the traditional marketing funnel obsolete. Customers will bounce between channels in unpredictable ways, guided by AI recommendations, making standard KPIs and attribution models increasingly difficult to track and rely upon.

While generative video is a focus, the most impactful application of generative AI in advertising right now is creating interactive ad units. These units, which allow users to demo a product or play a mini-game, drive the majority of engagement. Generative tools make it feasible for non-gaming e-commerce brands to adopt this highly effective, gamified format.