Brands set to cut open web display spend 30% in response to AI search
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Brands set to cut open web display spend 30% in response to AI search
"We expect that fewer consumers will be landing on the web pages where most of that display inventory has historically existed, and so there will just be fewer monetizable audiences there to begin with,"
"We're seeing clients shifting budget to reallocate,"
"I see the open web display category declining, for sure,"
"Why would we allocate a budget to something that's almost unmeasurable, that we really can't see the performance lift of without doing tons of modeling... Why not throw that more into something where you know what the input and the output is?"
By 2026 advertisers may cut open-web display investments by roughly 30% and reallocate budgets to CTV, paid social and streaming audio as addressable audiences on publisher pages shrink. Fewer consumers landing on publisher web pages reduces the pool of monetizable audiences. Google introduced Overviews in May 2024 and AI Mode in March 2025, while a 2024 estimate found up to 60% of searches end without a click, prompting brands to follow eyeballs. Some media agencies reported 20–30% reductions in open-web display spending during 2025. CTV and ad-supported streaming deliver storytelling, shoppable and measurable formats that support e-commerce goals.
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