The AI Chatbot Challenge to Onsite Ads
Generative AI chatbots like ChatGPT are changing how shoppers interact with online stores. Instead of browsing traditional product listings and ads, consumers increasingly rely on conversational AI to find products and make purchase decisions. This shift reduces visibility and engagement with onsite advertising inventory, posing a challenge for retail media networks that depend on these placements for revenue.
OpenAI’s Agentic Commerce Protocol (ACP) exemplifies this trend. By partnering with major retailers such as Walmart and Etsy, ACP enables AI agents to perform shopping tasks autonomously, bypassing traditional shopping funnels and onsite ads. This evolution suggests that RMNs must reconsider the value and role of onsite ad formats as AI redrafts the consumer journey.
Adapting for AI: New Avenues for Retail Media
In an AI-driven commerce environment, first-party data becomes essential for understanding shopper intent and preferences beyond the onsite clickstream. Retail media networks can leverage this data to target customers more precisely across various channels, including offsite media platforms. Extending capabilities beyond the retailer’s site allows RMNs to reach consumers within AI-driven interactions and other digital touchpoints.
Additionally, adopting AI-powered personalization tools helps create relevant ad experiences that resonate in this new context. Instead of relying solely on traditional display ads, RMNs can tailor advertising dynamically based on AI insights, increasing engagement and conversion opportunities while aligning with evolving shopper behaviors.
The Future-Ready Retail Media Network
Retail media networks facing the rise of generative AI must evolve their strategies to maintain relevance. Integrating conversational commerce elements and expanding ad inventory beyond onsite placements will be key. By capitalizing on first-party data and AI-driven personalization, RMNs can deliver value in emerging shopping models, ensuring continued growth despite changing consumer interactions.
Adapting to these shifts offers a path forward for retail media players aiming to stay competitive as generative AI reshapes the retail landscape.
