Key Takeaways:
• AI advertising is moving from concept to controlled rollout.
• This is a first-mover moment, not a mature ad platform.
• AI ads appear at the decision stage, not the browsing stage.
• Trust, relevance, and credibility matter more than creative hype.
• Costs will rise as competition increases—early testing matters.
• Companies that combine AEO + direct response will dominate visibility.
It’s happening.
Not someday.
Not years from now.
Now.
AI platforms are becoming the front door to the internet—and advertising is following.
This isn’t another channel.
It’s a structural shift in how people discover, evaluate, and decide.
And that creates a rare opportunity.
1. This Is a First-Mover Opportunity
Test early. Learn fast. Dominate before costs rise.
Every major advertising platform follows the same curve:
• Early access
• Limited competition
• Lower costs
• Faster learning
• Structural advantage for early movers
AI advertising will be no different.
Right now:
• Inventory is limited
• Competition is light
• Formats are still being defined
That’s when serious marketers test.
Waiting until this is “proven” means:
• Higher costs
• Crowded placements
• Fewer strategic options
First-movers don’t guess.
They learn while others watch.
2. What AI Advertising Actually Does (And Why It’s Different)
When someone asks an AI engine a question, they aren’t browsing.
They’re deciding.
Examples:
• “What’s the best CoQ10 supplement for heart health?”
• “What’s the best rare-earth minerals stock?”
• “What’s the most reliable CRM for a mid-size company?”
The AI doesn’t return 10 blue links.
It returns:
• Explanations
• Comparisons
• Shortlists
• Recommendations
Now imagine your brand appearing inside that answer context.
That’s the breakthrough.
You’re no longer competing for attention.
You’re competing inside the decision itself.
3. Estimated Audience Reach (Why This Isn’t Niche)
Based on current guidance:
• Advertising is expected to appear on free and lower-cost AI tiers
• Premium, enterprise, and paid tiers will likely remain ad-free
Translation:
Most AI users will still be on ad-supported tiers.
In the U.S. alone, that represents tens of millions of high-intent users—people actively asking questions, researching options, and making decisions.
This is not a fringe audience.
It’s a scale audience with intent.
That combination is rare.
4. AI Ad Strategy: What Will Actually Work
This is where many advertisers will fail.
AI ads will not reward:
• Clever slogans
• Hype
• Banner-style thinking
• Madison Avenue creativity
They will reward:
• Clarity
• Expertise
• Relevance
• Helpfulness
The best-performing AI ads will:
• Read like expert explanations
• Educate first
• Sell second
• Feel contextual, not promotional
Think:
• Advertorial-style answers
• Not traditional ads
This is where direct-response copywriting becomes a weapon.
5. Cost Expectations (And Why They’re Justified)
Early indications suggest:
• A premium cost per thousand impressions
• Pricing justified by intent, trust, and placement
Why that matters:
AI answers carry credibility.
When an ad appears alongside—or within—the context of an AI-generated answer, it inherits a level of implied trust that traditional ads do not.
You’re not paying for traffic.
You’re paying for:
• Context
• Credibility
• Decision-stage exposure
This is closer to a “paper impression” model:
• Fewer impressions
• Higher quality
• Greater influence
Early advertisers accept higher CPMs because conversion economics change.
6. AEO + AI Ads = The Real Advantage
Here’s the catch.
If your brand lacks credibility in AI answers, your ads underperform.
AI rewards:
• Expertise
• Clear structure
• Authority
• Verifiable claims
That’s why AEO (Answer Engine Optimization) is not optional.
The companies that win will:
• Appear organically in AI answers
• Reinforce that presence with paid placements
Ads without AEO lose trust.
AEO without ads loses visibility.
Together, they dominate.
Action: What You Should Do Now
If growth matters…
If ROI matters…
If you don’t want to be crowded out later…
There are two immediate priorities:
1. Prepare your brand to dominate AI answers (AEO)
2. Position yourself to test AI ads early—before the flood
AI advertising is still rolling out.
There is no public self-serve ad dashboard yet.
But companies that prepare now will be ready when access opens.
About the “Wait List” (Important)
There is no official public wait list for AI advertising yet.
However:
• Platforms typically open partner programs first
• Early access often favors prepared advertisers
• Brands with clear strategy, AEO readiness, and compliant offers move faster
That’s what “getting in line early” really means.
Being ready before the switch flips.
Action:
If you want to be positioned correctly—strategically, technically, and creatively—contact Michael.
Michael works with my 124-award-winning direct-response advertising agency, Creative Direct Marketing Group (CDMG), which helps companies:
• Prepare for AI advertising
• Build AEO authority
• Develop AI-friendly ad strategies
• Test early and intelligently
• Track real ROI as platforms mature
Email Michael at [email protected] or give him a call at 615-933-4647.
This window won’t stay open long.
FAQs:
Is AI advertising fully live everywhere?
No. Rollouts are controlled and expanding.
Will this replace Google Ads?
No—but it will redefine where high-intent decisions happen.
Is this only for big brands?
No. AI favors expertise and clarity, not just budgets.
Is AEO really that important?
Yes. Without it, ads lose credibility and conversion power.
Will costs rise?
Yes. They always do once competition floods in.
About Craig Huey:
Craig Huey is President of Creative Direct Marketing Group (CDMGinc.com), a 30-year leader in direct response advertising and multi-channel marketing. Under his leadership, CDMG has:
- Tested more than 10,000 digital marketing variables.
- Mailed over 10 million pieces of direct mail in the last year alone.
- Won more than 120 awards for marketing excellence.
Craig is also the publisher of Direct Marketing Update, the trusted newsletter for company presidents and marketing directors looking to maximize ROI with cutting-edge, accountable advertising strategies.
Let CDMG Be Your Partner in Driving Growth
Media Help, Copy Help, Testing Help, D2C, and e-Commerce Help
CDMG is more than an ad agency
Let us be your second opinion
CDMG’s award-winning team, run by marketing veterans Craig and Caleb Huey, is dedicated to improving your advertising, marketing, branding, and bottom line with a proven approach that maximizes response rates and ROI.
With expertise in media, data, digital, and creative strategy, we’ve earned over 120 prestigious awards, in 2024 alone.
Why CDMG?
- Proven Success: 120 prestigious awards in 2024 alone.
- Data-Driven Strategy: We don’t guess. We know what works. Our campaigns are crafted with precision to deliver maximum ROI.
- Expertise Across the Board: From media buying to digital copywriting, testing, and direct-to-consumer strategies—we’ve got it all covered.
- Real Results: We’ve helped launch new products, reposition brands, and turn small businesses into multimillion-dollar success stories.
Let us help with your video needs!
We produce:
• Pre-roll videos
• Video sales letters (VSLs)
• TV commercials
• Infomercials
• Addressable TV
• Videologs
…and much more!
Our team has launched new products… and helped reposition companies to a higher level. Our strategies and tactics have generated leads, and built powerhouse e-commerce programs that have helped turn small businesses into multimillion dollar success stories and grown large companies.
Our formula is data driven, accountable advertising that supercharges your growth. Every campaign is crafted precisely, focusing on what matters most to drive your success.
Let’s discuss your marketing challenges and give you a second opinion.
Contact Michael Oppenheimer at 615-933-4647 or email him at [email protected].
Start transforming your marketing results today with CDMG, Inc.