Google's AI search overviews are driving up cost-per-click (CPC) by 14% while simultaneously decreasing paid ad impressions by 6%. This means marketers are paying more to reach fewer people on this traditionally reliable channel, necessitating a re-evaluation of budget allocation.
AI tools have made video creation easier for creators, flooding platforms like YouTube Shorts with ad inventory. However, businesses lag in adopting AI for video ad creation. This supply-demand imbalance has made YouTube Shorts ads exceptionally cheap, creating a significant but temporary arbitrage opportunity for marketers.
Marketers are divided on LinkedIn ads because they focus on the wrong metric. While its cost-per-impression (CPM) is high, the platform's strength is deep targeting. Success comes from creating multiple specific messages for tailored audiences and measuring cost-per-click or acquisition, not broad impression costs.
AI tools have accelerated video creation for influencers far faster than businesses have adopted them for ad production. This gap has created a massive surplus of ad inventory on short-form video platforms. The resulting supply-demand imbalance temporarily depresses ad prices, creating unique buying opportunities for advertisers.