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AI could reshape ad budgets and marketing strategies

Advertising companies are poised to benefit from the widespread adoption of artificial intelligence. Macquarie Senior Media Tech Analyst Tim Nollen joins Yahoo Finance Live to discuss how AI can help advertising companies optimize their budgets. Nollen acknowledges that AI "has been a factor for many years already" in the advertising and media landscape. However, he also highlights the "broader implications" of language models like ChatGPT, which could fundamentally change how consumers perform searches. This shift could substantially impact search market revenue, which is already a $200 billion industry, Nollen explains. He notes AI could open up opportunities for advertisers who allocate ad spending to search engines, allowing them to diversify their budgets and explore alternative avenues. Nollen points to companies like AppLovin (APP) as potential beneficiaries: the company could leverage its data "to make their automated ad buying platforms more effective," potentially delivering higher "returns on spending" for advertisers. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Angel Smith