AI assistants like ChatGPT are reshaping consumer interactions with online shopping and search, posing a threat to Amazon's retail media revenue streams. Joe Marchese highlighted how these tools allow users to bypass traditional search methods essential for sponsored placements, directly impacting profitability for companies reliant on advertising revenue. He cautioned that this disruption extends beyond Amazon to other platforms with retail media operations, emphasizing that businesses depending on consumer search behaviors must adapt to survive the shift brought by AI.
Marchese highlighted the changing landscape of retail media due to AI assistants like ChatGPT: "That doesn't exist in a world where I just ask ChatGPT, 'What are the best batteries to get? Okay, buy me those batteries.'"
Warning about the broader implications, Marchese stated, "It's not just search at Google, it's search everywhere," indicating that disruption affects multiple platforms.
He emphasized the vulnerability of retail media businesses by saying, "Every business that you think about, if they have an advertising business, which is a driver of profitability, the extent to which it relies on people searching will determine just how much of a disruptor AI will be."
Marchese noted that Amazon's retail media business, projected at $60 billion by 2025, could face significant challenges as consumer behavior shifts.
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