"From a technical standpoint, the integration isn't particularly novel. The campaigns operate within the OpenRTB protocol, for instance, just as other programmatic buys do, Nishant Khatri, PubMatic's EVP of product management, told AdExchanger. He added that he doesn't see the channel as "very different from the general programmatic benefits." The real novelty is the speed at which new AI chatbots are emerging and the interest ad buyers have in the products, according to Khatri."
"Within AI search, "user intent is expressed much more clearly than in traditional search," said Luke Jinu Kim, CEO of AI search engine Liner. Since people's prompts are part of a specific and ongoing conversation, he said, advertisers can tailor a message more to that individual. Plus, as people increasingly use AI chatbots and build more trust and competence with the products, conversion rates and performance should go up, Kim said."
PubMatic partnered with Kontext to add LLM-generated ad inventory from AI chatbots into programmatic supply via an SSP integration. Campaigns run over the OpenRTB protocol and follow existing programmatic mechanics. Rapid growth of AI chatbots and strong advertiser demand motivate the move. Many major LLMs and chatbots currently lack paid media, but consumer AI products are likely to adopt ad-based revenue models over pure subscriptions. AI-driven conversational prompts reveal clearer, in-the-moment user intent, allowing more personalized advertising and the potential for higher conversion rates. Programmatic integration helps early AI publishers attract more advertisers, increase competition and improve fill rates.
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