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Media Briefing: AI ad tools from news publishers demonstrate promising results, but require further validation

News publishers have been slow to adopt generative AI technology in their newsrooms, but when it comes to improving their advertising businesses, the story is quite different. This year, major publishers such as News UK, The New York Times, and The Wall Street Journal have introduced proprietary AI-based advertising tools aimed at enhancing the delivery of advertisers‘ campaigns to their audiences. These tools use AI to determine brand-safe inventory, target specific audience segments, and improve overall campaign performance.

One such tool is News UK’s Nucleus Narr(ai)te, developed in collaboration with AI tech company Illuma. This tool analyzes the context of articles and the style of publications to assess whether the content is suitable for advertisers. By going beyond traditional keyword blocking strategies, Nucleus Narr(ai)te helps increase brand safety and improve revenue generation for News UK. Since its beta launch, the tool has shown a 16% increase in brand-safe inventory and a 10% increase in segment accuracy.

Similarly, The New York Times and The Wall Street Journal have introduced their own AI ad tools, BrandMatch and Thematic AI, respectively. BrandMatch interprets advertisers‘ briefs to place ads on content likely to attract target audiences, resulting in higher click-through rates and brand lift. Thematic AI matches marketing campaigns to specific readers in the Journal’s audience, leading to a 66% increase in average click-through rates.

From an advertiser’s perspective, the performance benefits of these AI tools are crucial. Liane Nadeau, head of investment at Digitas, emphasizes that AI should deliver better campaign results or unlock higher-performing ad inventory to justify its use. Advertisers are not simply buying AI as a standalone feature but as an enabler and accelerator of their advertising strategies.

In addition to improving campaign performance, publishers are also exploring content licensing deals with AI companies to boost revenue. Dotdash Meredith’s deal with OpenAI contributed significantly to its revenue growth in the second quarter of 2024. IAC’s CEO, Joey Levin, expressed confidence in securing more multi-million dollar deals with AI companies in the future, highlighting the growing importance of content in the digital landscape.

As publishers continue to leverage generative AI technology for advertising purposes, the industry is witnessing positive outcomes in terms of revenue growth, campaign performance, and audience engagement. These AI tools are not only enhancing the advertising ecosystem but also shaping the future of digital publishing. By embracing AI-driven solutions, publishers are staying ahead of the curve and redefining the way they connect with audiences and advertisers in a rapidly evolving digital landscape.

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