From ads for Amazon Prime Video shows running on JioCinema in the middle of the ongoing IPL matches to Google and Apple likely to be collaborating to use the former’s Generative AI Gemini to power the latter’s iPhones, the industry is increasingly seeing big tech companies side by side, and we don’t mean in the stock index tickers. Instead, there seems to be a growing fellowship among the arbiters of our digital lives, which can only spell good things for the entire ecosystem. One lives in hope anyway.
While marketers are increasingly talking about, and advertisers increasingly spending ad dollars on, the open internet, there is a seeming digital utopia outside the walled gardens of the Big Five (Alphabet, Amazon, Apple, Meta, and Microsoft) and a small, but growing, cadre of industry peers (we’re looking at you retail media and Connected TV). And they are turning to each other, as those gardens look to their walls.
Siddharth Jhawar, Country Manager, Moloco, points out that all digital companies, large and small, have realized how critical advertising revenue has become to ensure profitable growth. “Big tech companies have a head start by building sophisticated ad-tech; others will need to catch up soon, so that the distribution of ad dollars can be equitable.”
“Using a competing platform's ad inventory to advertise one's own product is not uncommon. Competing gaming apps run ads on each other's inventories, Google and Facebook run ads on each other's platforms, Indian social apps rely heavily on Instagram to drive their app's discovery,” says Jhawar.
But that playground is now also opening up to the likes of e-commerce platforms with their reams of rich consumer data as well as AVOD/SVOD channels on Connected TV as more households cut the cord. And while device interoperability and its ability to create a true omni-channel for both advertisers and audiences is still in the works, platform interoperability is all the rage.
Saying these trends extend beyond individual platforms, Prashant Puri, Co-Founder & CEO, AdLift, believes the recent collaboration between Apple, Google, and other major players signifies a broader industry shift towards strategic alliances.
“It's about to change how we see ads. Imagine all your favourite apps working together. This could lead to hyper-targeted ads that follow you across platforms, or even entirely new formats powered by AI – think personalized recommendations, not interruptions!” enthuses Aidan Da Costa, Key Brand Relations Manager, GOZOOP Group.
“Such partnerships aim to leverage combined resources and expertise to better understand the changing media landscape and enhance user experiences. The array of content and technological advancements offered by Over-the-Top (OTT) platforms and tech giants presents a complex decision-making environment. This necessitates a strategic approach, as audiences strive to optimise their consumption habits while avoiding the fear of missing out on coveted content,” says Puri.
Santosh Aiyar, Co-founder & CMO, Elever, says that from an advertiser lens, this could be great as this would mean critical insights across multiple touch points, which can significantly boost campaign effectiveness. It can also result in more optimal media buying.
The real question then is, how will this platform collaboration play out? These partnerships could create a few ad giants controlling everything, or it could lead to a more open system with more competition and potentially more control over your data.
“This fight will determine the future: will high-quality, engaging programming remain king, or will AI-powered, personalized ads become so effective that content becomes less important?” says Da Costa, adding the answer likely involves a mix of both. “But one thing's for sure: these tech tie-ups are a game-changer for advertising, and the way we experience ads is about to be transformed.”
“From the consumer lens though the biggest worry will be about privacy - how does my data travel across companies and does giving access to one company, now mean it becomes automatically applicable to others who may not even serve me?,” observes Aiyar, adding that this is where newer tech like universal IDs could help.
And speaking of new technologies, there’s also now the added complication of AI being harnessed across the board, platforms, devices and any other interface you could care to name. While Open AI and Microsoft are reaching out across businesses and industries, other would-be Altmans are also incorporating Generative AI, LLMs and other buzzwords into a range of products and services.
AI partnerships are at a very nascent stage, says Jhawar, adding that the big trend to watch out for is ChatGPT's impact on search. “Increased user traction on ChatGPT for knowledge discovery may lead to a drop in traffic on search and thereby on content platforms - this may reduce supply of ad opportunities and the underlying inventory may become more expensive for the advertiser,” he says, noting we will need to watch this trend over the next few quarters with a visible impact only in 2025.
