Behind the Numbers: AI Ads for $2K? Meta, Kalshi, and a Reimagined Ad World | Behind the Numbers

Release Date: July 7, 2025

In this episode of EMARKETER’s “Behind the Numbers,” hosts Marcus, Yuri Wormser, and Jeremy Goldman delve into the transformative impact of artificial intelligence (AI) on the advertising landscape. The discussion centers on Meta’s ambitious AI-driven advertising strategies, the evolving role of marketing agencies, the rise of machine-to-machine advertising, and the implications of highly personalized AI-generated ads. The episode also examines real-world examples of AI in advertising and addresses consumer sentiments regarding AI-generated content.

1. Introduction

Marcus kicks off the episode by announcing new branding for the podcast and introducing his co-hosts, Yuri Wormser, Principal Analyst covering digital advertising, media, and technology, and Jeremy Goldman, Director of Briefings. The hosts share light-hearted banter before transitioning to the episode's main topic: the intersection of AI and advertising.

2. The Future of AI in Advertising

Meta’s Vision for AI-Driven Ads

Yuri discusses an article from The Economist highlighting Meta CEO Mark Zuckerberg's promise that by the end of 2026, brands will set their advertising objectives and budgets, after which Meta's AI systems will handle targeting, campaign creation, measurement, and optimization. Marcus summarizes:

“Meta will do everything, pretty much from targeting the right people, creating the right campaigns, the measurement part of it, and then firing the results back at you so we can iterate and do it all over again. Just give us your credit card and your objective.” (04:22)

Sam Altman's Perspective

Jeremy brings in insights from Sam Altman of OpenAI, who believes that 95% of current marketing tasks performed by agencies and professionals could soon be managed by AI with minimal cost and effort. This underscores the potential for AI to streamline operations and reduce reliance on traditional marketing roles.

The Role of Marketing Agencies

Yuri counters the idea that agencies will become obsolete, arguing that while AI will automate many lower-touch advertising tasks, agencies will evolve rather than disappear. Jeremy adds that agencies may shift towards higher-level strategic and executive functions, maintaining their relevance by adapting to the new AI-driven environment.

“I don't think it's going to take all business away from agencies... but they will find other things to do.” (07:44)

3. Machine-to-Machine Advertising

AI Agents in Advertising

Marcus introduces the concept of machine-to-machine advertising, where AI agents handle advertising tasks autonomously. He references a Wall Street Journal article by Katie Dayton discussing how AI agents could influence ad creation and targeting without direct human intervention.

Implications for the Ad Economy

Jeremy speculates on the future where human-focused advertising channels, such as out-of-home advertising, might gain value as AI handles most digital campaigns. He suggests:

“When we get to that future, you might see some channels where you can actually reach human beings go up in value.” (11:01)

Consumer Interaction with AI Ads

Yuri envisions a world where AI-generated ads become so sophisticated that consumers may not even realize they are interacting with AI-created content.

“As the technology gets better... it will become less and less obvious that it's AI generated.” (18:17)

4. Personalized Advertising Through AI

Customized Ad Experiences

The hosts discuss how AI enables unprecedented levels of ad personalization. Jeremy explains that advancements are bringing us closer to one-to-one advertising, where each consumer may see a uniquely tailored ad based on their specific data and preferences.

“We're moving closer to a world where can we get to one to one in the very near future.” (14:22)

Managing Diverse Ad Variations

With AI, marketers can create and manage numerous ad variations effortlessly, optimizing them in real-time based on performance data and consumer interactions.

5. Case Study: AI-Generated Ads

Kalshi’s Successful AI Ad

Jeremy highlights a case where Kalshi, a betting company, produced an AI-generated 30-second TV ad using Google’s AI tools for just $2,000. The ad featured dynamic characters predicting NBA Finals outcomes and amassed over 3 million views within a week.

“It's something that is pretty much in the palm of a whole lot of different people's hands.” (16:42)

Challenges with AI Ads

However, not all AI-generated ads have been successful. Marcus references Coca Cola's attempt to revamp their classic Christmas ad with AI, which didn't resonate as well with audiences. Coupled with a survey indicating that nearly two-thirds of U.S. adults feel uneasy about AI-generated ads, the hosts acknowledge the mixed consumer reactions.

“Nearly 2/3 of US adults feel uneasy about AI generated ads... most people said we don’t love it so much.” (17:39)

Technological Advancements

Yuri and Jeremy agree that as AI technology improves, the realism and effectiveness of AI-generated ads will increase, potentially alleviating current consumer hesitations.

“There are glitches in there... but the technology is better now, you're going to see it take off.” (18:54)

6. Transparency in AI-Generated Content

Consumer Demand for Disclosure

Marcus presents survey data showing that close to 80% of consumers believe media publications should disclose when AI is used in content creation. The discussion revolves around whether advertisements will need to include watermarks or clear indicators of AI involvement.

Contextual Transparency

Jeremy emphasizes that transparency will depend on the context. For instance, using AI to recreate a beloved figure in a movie requires clear disclosure to avoid misconceptions.

“The context really matters, I think, in terms of when people are going to expect disclosures.” (20:14)

Future Expectations

Yuri predicts that while AI will become ubiquitous in content creation, there will still be a market for non-AI, “handmade” content, making AI usage an exception and something to be highlighted rather than the norm.

“AI is going to be so pervasive that it's going to be the exception.” (21:08)

7. Insights and Conclusions

The episode concludes with reflections on the dual nature of AI in advertising—offering both efficiency and creative potential while presenting challenges in consumer acceptance and transparency. The hosts agree that while AI will significantly alter the advertising landscape, human expertise and strategic thinking will remain essential. Marketing agencies are poised to evolve, embracing technology to offer higher-level services and maintain their pivotal role in the industry.

“Whilst marketers and agencies have their eyes on the future, the void between their public optimism and private anxiety is hard to ignore.” – Rebecca Stewart and Alison Vice Brot, Ad Week

Notable Quotes

• Marcus on Meta’s AI Strategy:
  “Just give us your credit card and your objective.” (04:22)

• Jeremy on the Future of Agencies:
  “Agencies aren't going away, but in the makeup of where they're making the vast majority of their revenue that might shift over time.” (07:44)

• Yuri on AI Ad Realism:
  “As the technology gets better... it will become less and less obvious that it's AI generated.” (18:17)

• Jeremy on Personalized Ads:
  “We're moving closer to a world where can we get to one to one in the very near future.” (14:22)

• Rebecca Stewart and Alison Vice Brot on Marketers’ Sentiments:
  “Whilst marketers and agencies have their eyes on the future, the void between their public optimism and private anxiety is hard to ignore.” (22:10)

This episode of “Behind the Numbers” provides a comprehensive exploration of AI’s growing influence in advertising, balanced with expert insights on future trends and industry adaptations. Whether you're a marketer, retailer, or advertiser, the discussion offers valuable perspectives on navigating the rapidly evolving digital media landscape.