"For most general web users, Brave is the most successful browser they've never heard of. But perhaps more people know it than you might expect. Otherwise, how could Brave have generated $25 million in revenue in Q1 2025, most of which came from the search ads product built into its browser. Still, there is a glimmer of hope for search engines that want to quickly build up their own index."
"Personalized ads are more scalable and have "more positive-sum characteristics for society as a whole," Seufert writes. Still, he acknowledges that the current form of standardized search and web advertising doesn't fit neatly within agentic AI consumer experiences. "The functional form of the ad placements that best monetize chatbots is a trillion-dollar problem to be solved by sophisticated product minds," he writes."
Brave generated $25 million in revenue in Q1 2025, driven largely by its built-in search ads product, demonstrating demand for alternative search monetization. A federal judge decided that Google must share some of its valuable search index data with rivals, creating opportunities for competitors to build indexes more quickly. AI technologies and large language models are expected to reshape the web economy, but viable business models remain uncertain. Affiliate revenue is proposed as a potential foundation for advertising in AI environments because CPMs and CPCs may underperform. AI chatbots excel at generating conversions and recommending products, while personalized ads appear more scalable than standardized search advertising.
Read at AdExchanger
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