How Will Advertising Change in the AI Era? Eric Seufert on the World of the 'Unmeasurable' and the Reconstruction of Marketing
As technology and privacy regulations fundamentally shake up marketing, the perspectives required of marketers are changing significantly. Eric Seufert, a mobile advertising strategist and publisher of 'Mobile Dev Memo,' is one of the individuals leading the redefinition of advertising in the post-privacy era.
In this article, based on an interview with Greylock, we explain his current view of marketing and his vision for the future, along with specific theories and case studies.
1. The Biggest Change in the Post-Privacy Era: A Paradigm Shift in Measurement
1-1. ATT and the 'Collapse of Measurement'
With Apple's introduction of App Tracking Transparency (ATT), traditional advertising measurement methods—especially 'last-click' deterministic attribution—have effectively become dysfunctional. Seufert describes this as a 'complete overhaul of measurement.'
'We could no longer visualize ad effectiveness with ATT. That was certainly a blow, but it also served as a catalyst for evolving toward more essential measurement methods.'
1-2. Emphasis on Probabilistic Approaches and Incrementality
Marketers are shifting their thinking away from tracking 'direct causality' toward probabilistically estimating the 'incremental lift' brought about by advertising investment. As a result, channels that were previously difficult to measure, such as CTV and podcast advertising, are now considered 'measurable.'
'Better measurement encourages advertiser investment and expands the overall market size. In other words, it's a game where everyone can be a winner.'
2. An Era Where Everything Becomes an 'Ad Network'
2-1. The Rise of CTV and Retail Media
Seufert has proposed the hypothesis that 'Everything is an ad network.' Today, there are signs that CTV, retail media, and even generative AI-based chat apps are becoming advertising media.
For example, black-box ad delivery tools that operate entirely within platforms, such as Meta's Advantage+ and Google's Performance Max, are expanding rapidly. In these environments, the last-click model does not apply, making more sophisticated signal design and contribution estimation essential.
2-2. Signal Design and the Re-evaluation of First-Party Data
Advanced advertisers are moving away from 'sending as many signals as possible' toward 'designing fewer, higher-quality signals.'
'One high-density, high-precision signal is more valuable than 50 low-quality signals per user.'
This enables more precise campaign optimization, which in turn improves user experience and ROAS (Return on Ad Spend).
3. Personalization of Pricing and Bundles: Optimization Strategies Beyond Advertising
3-1. Dynamic Bundle Design Enabled by AI
With the relaxation of Apple's restrictions on in-app payments, developers can now design products and pricing more flexibly via their own websites. Seufert calls this a 'personalized economy' and focuses on the potential brought about by AI-driven optimization of pricing and product bundles.
"Taking in-game items as an example, AI can present the optimal package and price based on a user's willingness to pay and their LTV (Lifetime Value)."
Such dynamic merchandising will become a new weapon for marketers to maximize final revenue.
4. Redefining Search and Advertising in the LLM Era
4-1. 'AI Overviews' and the End of SEO
Generative AI, such as Google's AI Overview feature and ChatGPT, is becoming established as the starting point for information discovery. As a result, the ROI of traditional Search Engine Optimization (SEO) has dropped significantly.
"SEO is unpredictable and carries high volatility risk. Therefore, resources should be concentrated on controllable advertising strategies."
The current situation, where many brands are deciding to 'wait for advertising products to appear' rather than focusing on 'SEO compliance,' is symbolic of this.
4-2. Exploring New Ad Units in LLMs
Seufert asserts that it is 'inevitable' that LLM platforms like ChatGPT will launch full-scale advertising businesses in the future. However, a format that does not compromise user trust is required, rather than an extension of traditional search-linked advertising.
Examples of specific units he proposes:
Full-screen non-skippable interstitials(periodically inserted for free users)
Contextual insertion ads during rendering
Parallel display via side banners (Tower Units)
Break ads presented by interrupting the conversation with an AI avatar
Clearly distinguishing between advertisements and information will be the key to advertising success in LLMs.
5. The Role of Websites and Transactions in the 'Answer Engine' Era
In an era where users obtain almost all information via AI before navigating to a website, the role of the website itself is changing. It is shifting from a 'place for providing information' to a 'place for completing purchases.'
"Whether or not they ultimately buy is decided at the information-gathering stage on ChatGPT. The website is now nothing more than a 'checkout counter'."
This change also affects the raison d'être for cart providers like Shopify.
6. Changing Roles for Agencies and Talent: Media Buying Shifts to 'Strategy Design'
Meta CEO Mark Zuckerberg has begun to articulate a vision where 'if you just tell us your goals, our AI will automatically optimize everything.' Products like Advantage+ are already making that world a reality.
This trend is also changing the roles of media buyers and agencies:
From simple operations to 'strategy designers'
To designers of creative strategy and LTV maximization
Designing for the post-conversion user experience is now essential
In an era where AI agents replace ad operations, marketers are required to become more adept at 'economic perspectives' and 'user value design.'
'AI-driven automation is not for efficiency, but for value creation. If you maximize customer value, you can maximize ad spend. It is not a zero-sum game.'
What emerges from Eric Seufert's discussion is a vision where advertising is evolving from a mere customer acquisition tool into 'part of the UX' and 'the core of economic design.' Amidst the triple structural changes of AI, privacy restrictions, and the reconstruction of ad networks, the roles played by marketers are being fundamentally rewritten.
The keywords are 'trusted advertising,' 'measurable advertising,' and 'personalized economic zones.' And what supports them may no longer be human effort, but a new marketing OS built by AI.
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