"Once upon a time, in the distant, long-ago days of, like, 2021, investors were all clamoring for subscription businesses. They wanted subscriptions from formerly free digital media publishers, old newspaper companies, broadcasters launching streaming services, retailers and technology companies. Subscriptions were considered a bastion of reliability, compared to ad tech vendors, say, that must constantly earn their next meal. Even mobile category darling AppLovin is year-to-date down 44%. "I just wonder if you could maybe give us some assurance that your customers are doing well, that everything is going well," asked one investor about LiveRamp's hub of SaaS partners - sounding not bearish, but genuinely concerned for their well-being."
"AI For Ads Integrity Business Insider reported last week that OpenAI is hiring a software engineer in its "Ads Integrity" unit. "This team sits at the intersection of rapid revenue growth and responsible platform stewardship, designing systems that enable ads to scale without compromising user trust or safety," per the job listing. "Integrity doesn't seem to be an ads aspiration," writes John Ebbert. ("Hi, John!") As Tipsheet notes, incorporating "Integrity" into everything makes sense for a company with OpenAI's spotlight. But being overly cautious or overly nice about advertising has risks, too."
"For veterans of the ads business, it seems inevitable that there will be ChatGPT advertising blunders: contextual mishaps, privacy transgressions, overeager ad sales and just downright cringey moments. Ebbert says he'd argue that "integrity is table stakes and this company's ad strategy needs to move forward with urgency that must plow through the inevitable missteps early on.""
Investor enthusiasm for subscription businesses surged around 2021 across publishers, broadcasters, retailers and technology firms seeking recurring revenue. Subscriptions were positioned as more reliable than advertising-based models, yet ad-tech remains volatile, exemplified by AppLovin's significant decline. Investors expressed concern about customer health within SaaS partner ecosystems such as LiveRamp's. OpenAI is building an Ads Integrity team to reconcile fast revenue growth with platform stewardship and user trust. Industry veterans predict unavoidable ChatGPT-era advertising errors including contextual mistakes, privacy lapses and tone-deaf sales. Observers contend integrity is baseline while ad strategies must advance despite early missteps.
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