The Rise of AI Advertising: How Algorithms Are Outsmarting Human Analysts

Lon Harris
Lon Harris is a contributor to dot.LA. His work has also appeared on ScreenJunkies, RottenTomatoes and Inside Streaming.
The Rise of AI Advertising: How Algorithms Are Outsmarting Human Analysts
Evan Xie

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AI-enabled technology continued creeping into every aspect of our daily lives this week. A viral TED Talk features an early prototype for a wearable AI assistant. Alphabet merged its internal “Google Brain” team with DeepMind, the company it acquired in 2014, to significantly accelerate progress on AI research. Meanwhile, Elon Musk took some time away from having the WORST. 4/20. EVER. to talk up his latest AI project, a bot called TruthGPT that will investigate the meaning of life.


Nonetheless, Google still somehow managed to find a new way to generate a few headlines with yet another new integration for AI technology. According to a report from The Financial Times, Alphabet plans to use generative AI to create new kinds of original advertising across all of its various platforms. The same Large Language Model (LLM) that powers the Bard chatbot, along with some of the AI features available in Gmail and Google Workspace, will now develop ads and even whole ad campaigns for the company’s various platforms, including YouTube, Maps, Gmail, and even search result pages.

We’re not talking text-to-video here, exactly. Alphabet won’t just be writing simple prompts and letting the software design an entire campaign from there. Instead, sponsors and clients will supply Google with “chunks” of content related to their product offering, including images, video clips, and written copy. The bot will then “remix” all of these materials into an original ad, customized and fine-tuned around various Alphabet platforms and services.

The new AI ads will be integrated into a mysterious Google beta program known as “Performance Max.” First introduced in late 2020, Performance Max is designed to maximize ad efficiency and reach across all Google platforms, and treats the company’s entire suite of products and services holistically, as a single advertising channel.

That means sponsors don’t decide whether they want their ads to appear on Google search pages or within Google Maps results or even ahead of YouTube videos. They just sign up, provide sales and CRM data, upload creative assets, lay out their budgets and the type of conversions they’re looking for, and allow Performance Max to do the rest. It’s something of a black box, focused on results but giving advertisers less granular control over their campaigns.

As Google executive Sean Downey explained to Digiday this week, Performance Max remains focused on “outcome and optimization,” giving advertisers fewer options because “too many constraints around their campaigns can actually hinder that goal.” Nonetheless, the addition of AI bots – which also work in mysteriously inexplicable ways behind the scenes – to an already obscured system is a bit like putting a black box inside another black box. Google is falling back on years of built-up trust from brands here.

AI and AI-like systems have long been employed by the advertising industry, which relies on a large amount of number-crunching to guess at what kinds of messaging are going to reach the most receptive audiences across various platforms. It’s nearly impossible for human analysts to compete with software when it comes to comparing so many variables – from audience to device to time of day, context, performance, and so on – across so many different platforms. AI-enabled systems are also more dynamic, and can respond to shifts in user behavior or traffic in real time, making them particularly useful for launching and maintaining ad campaigns and maximizing their effectiveness. So it’s perhaps unsurprising that companies like Alphabet plan to expand their integration behind-the-scenes.

The notable shift is in making this AI output public-facing. Rather than relying on bots to design and run ad campaigns written and planned out by humans, Google will now have the bots actually writing the copy and producing the finished videos themselves. It’s sure to save the sponsors money, down the road, and perhaps also increase efficiency, while likely also costing some human copywriters and marketing executives their jobs.

Google’s not alone, either, in exploring the various ways AI software can assist its advertising business. Earlier this month, Meta announced plans to use generative AI to create new kinds of advertising for its various platforms. Microsoft also has plans to utilize technology developed by its in-house division, ChatGPT creators OpenAI, to improve and fine-tune its ad business. The company has been testing ads embedded in Bing AI chatbot responses since February, though it has declined to report how many users have actually seen or interacted with the ads. (These links aren’t marked as ads within the Bing AI chat conversations, though an ad icon appears if a user hovers over the link.) Microsoft is also playing around with photo and video ads for Bing chats.

California startup Creative.ai is trying to bring a similar kind of system to independent video game designers. Founder and CEO Athar Zia explained to Forbes last week that, once a video game developer identifies an ad type that works well to promote their game, they then must invest a lot of their time producing “endless imitations and iterations” of that ad for various platforms and app stores. The company’s technology, on the other hand, analyzes successful gaming ads and then replicates them automatically for new products.

Whether there will be room in the AI-enabled advertising world for up-and-comers remains to be seen. Regardless, farming out some – if not all – of the work involved in mounting a campaign to digital ad managers seems all but inevitable at this point. The apps can keep an eye on progress across multiple platforms, 24 hours a day, and they go through a lot fewer bottles of whiskey and orders of Clams Casino than the Mad Men.

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LA’s Upgrade in Travel and NBA Viewing
Image Source: Los Angeles World Airports

🔦 Spotlight

Exciting developments are underway for Los Angeles as the city prepares for major upgrades in both travel and entertainment. The Los Angeles Board of Airport Commissioners has approved an additional $400 million for the Automated People Mover (APM) at LAX, increasing its total budget to $3.34 billion. This boost ensures the elevated train’s completion by December 8, 2025, with service starting in January 2026. For Angelenos, this means a significant improvement in travel convenience. The APM will streamline connections between parking, rental car facilities, and the new Metro transit station, drastically cutting traffic congestion around the airport. Imagine a future without the dreaded 30-minute traffic delays at LAX! The APM will operate 24/7, reducing airport traffic by 42 million vehicle miles annually and carrying 30 million passengers each year, while also creating thousands of local jobs and supporting small businesses.

Meanwhile, the NBA is also making waves with its new broadcasting deals. The league has signed multi-year agreements with ESPN, NBC, and Amazon Prime Video, marking a notable shift in media partnerships. ESPN will maintain its long-standing role, NBC returns as a network broadcaster after years away, and Amazon Prime Video will provide NBA games through its streaming platform. Starting with the 2025-2026 season, these deals will enhance the league's reach and revenue, aligning with the NBA's goal to expand its audience and adapt to evolving viewing habits. Whether you're catching the action on TV or streaming online, these changes promise to elevate the fan experience and bring more basketball excitement to Los Angeles.


🤝 Venture Deals

LA Companies

  • Pearl, a startup that makes AI-powered software that assists dentists in identifying cavities, gum disease, and other dental conditions, raised a $58M Series B funding led by Left Lane Capital with Smash Capital, and others also participating. - learn more

LA Venture Funds

  • Fulcrum Venture Group participated in a prior $3.5M Pre-Seed Round for Code Metal, a developer tools startup. - learn more
  • B Capital co-led a $12.5M Seed Round for Star Catcher, a startup that aims to develop a space-based grid that captures solar energy in space and distributes it to satellites and other space assets. - learn more
  • Mantis VC and Amplify participated in a $140M Series C for Chainguard, an open source security startup. - learn more
  • Prominent LA venture capitalist, Carter Reum and wife, Paris Hilton, participated in a $14M Seed/Series A for W, the men’s personal care brand from Jake Paul. - learn more

LA Exits


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🤫 The Secret to Staying Fit at Your Desk: 6 Essential Under-Desk Exercise Machines

Health experts are sounding the alarm: our sedentary jobs are slowly killing us, yet we can't abandon our desks if we want to keep the lights on. It feels like we're caught between a rock and a hard place. Enter under-desk exercise machines – the overlooked heroes (albeit kind of goofy looking) of the modern workspace. These devices let tech professionals stay active, enhance their health, and increase their productivity, all without stepping away from their screens. Here are 6 fantastic options that will enhance the way you work and workout simultaneously.

DeskCycle Under Desk Bike Pedal Exerciser

This bike has nearly ten thousand five-star reviews on amazon. It works with nearly any desk/chair setup. It is quiet, sturdy and allows up to 40 pounds of resistance. If you are looking for an under-desk bike this is a fantastic option.

Type: Under-Desk Bike

Price: $180 - $200


Sunny Health & Fitness Dual Function Under Desk Pedal Exerciser

This under-desk bike is extremely quiet due to the magnetic resistance making it an ideal option if you work in a shared space. It doesn’t slip, has eight levels of resistance, and the option to work legs and arms. It’s about half the price of the DeskCycle bike making it a solid mid-range option for those looking to increase their daily activity.

Type: Under-Desk Bike

Price: $100 - $110


Sunny Health & Fitness Sitting Under Desk Elliptical

This under-desk elliptical comes in multiple colors if you really want to underscore that you are a quirky individual, in case an under-desk elliptical isn’t enough. This model is a bit heavy (very sturdy), has eight different resistance levels, and has more than nine thousand 5-star reviews.

Type: Under-Desk Elliptical

Price: $120 - $230


DeskCycle Ellipse Leg Exerciser

This under-desk elliptical is another great option. It is a bit pricey but it’s quiet, well-made and has eight resistance levels. It also syncs with your apple watch or fitbit which is a very large perk for those office-wide “step” challenges. Get ready to win.

Type: Under-Desk Elliptical

Price: $220 - $230


Daeyegim Quiet LED Remote Treadmill

If you have a standing desk and are looking to walk and work this is a fantastic option. This walking-only treadmill allows you to walk between 0.5 to 5 mph (or jog unless you have the stride length of an NBA forward). It is very quiet, which is perfect if you want to use it near others or during a meeting. You can’t change the incline or fold it in half but it is great for simply getting in some extra steps during the work day.

Type: Under-Desk Treadmill

Price: $220 - $230


Sunny Health & Fitness Foldable Manual Treadmill

This under-desk treadmill isn’t the most premium model but it is affordable and has an impressive array of features. It is a manual treadmill meaning it doesn’t need to be plugged in; it is foldable and offers an incline up to 13%. I personally can’t imagine working and walking up a 13% incline but if that sounds like your cup of tea, then I truly respect the hustle.

Type: Under-Desk Treadmill

Price: $150 - $200




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🤠Musk Picks Texas and 🔥Tinder AI Picks Your Profile Pictures

🔦 Spotlight

Tinder is altering dating profile creation with its new AI-powered Photo Selector feature, designed to help users choose their most appealing dating profile pictures. This innovative tool employs facial recognition technology to curate a set of up to 10 photos from the user's device, streamlining the often time-consuming process of profile setup. To use the feature, users simply take a selfie within the Tinder app and grant access to their camera roll. The AI then analyzes the photos based on factors like lighting and composition, drawing from Tinder's research on what makes an effective profile picture.

The selection process occurs entirely on the user's device, ensuring privacy and data security. Tinder doesn't collect or store any biometric data or photos beyond those chosen for the profile, and the facial recognition data is deleted once the user exits the feature. This new tool addresses a common pain point for users, as Tinder's research shows that young singles typically spend about 25 to 33 minutes selecting a profile picture. By automating this process, Tinder aims to reduce profile creation time and allow users to focus more on making meaningful connections.

In wholly unrelated news, Elon Musk has announced plans to relocate the headquarters of X (formerly Twitter) and SpaceX from California to Texas. SpaceX will move from Hawthorne to Starbase, while X will shift from San Francisco to Austin. Musk cited concerns about aggressive drug users near X's current headquarters and a new California law regarding gender identity notification in schools as reasons for the move. This decision follows Musk's previous relocation of Tesla's headquarters to Texas in 2021.

🤝 Venture Deals

LA Companies

LA Venture Funds

LA Exits

  • Penguin Random House agreed to acquire comic book publisher Boom! Studios from backers like Walt Disney Co. - learn more

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