Next in Media: Mike and Emily Riley Review the Week in Ad News

Release Date: April 7, 2025
Hosts: Mike Shields & Emily Reilly

In this episode of Next in Media, host Mike Shields welcomes his friend and seasoned consultant, Emily Reilly, to discuss and debate the key developments in the advertising, media, and marketing sectors from the past week. Their conversation navigates through economic uncertainties, brand safety challenges, the evolving landscape of digital platforms, strategic acquisitions, and the integration of artificial intelligence in ad tech.

1. Tariffs and Economic Uncertainty Impacting Advertising

Mike Shields opens the discussion by addressing the pervasive impact of recent tariff implementations on the advertising industry. He expresses concern over the lack of clarity surrounding these tariffs and their subsequent effect on advertising forecasts and consumer confidence.

• Mike Shields [00:00]: "There's a reason we haven't done them in a long time and everyone's freaking out. You're seeing advertising forecasts get revised. It's not good for consumer confidence and it's not good for investors with uncertainty."

Emily Reilly identifies two primary phases of challenges arising from this situation:

1. Immediate Financial Scramble: Advertisers are urgently trying to balance their budgets amidst rising costs, leading to cautious spending behaviors.
2. Long-Term Consumer Behavior Shifts: Uncertainty about product availability and price increases may result in reduced consumer spending.

• Emily Reilly [01:38]: "Advertisers and the bigger companies that they work for know right away that they're going to be dealing with increased prices. And public companies still have to live up to whatever earnings they're supposed to be reporting."

2. Supply Chain Issues Affecting Advertising

The conversation delves into how supply chain disruptions are complicating advertising efforts. Mike highlights the dilemma advertisers face when promoting products that might be scarce or priced higher due to these disruptions.

• Mike Shields [02:22]: "It's hard to advertise things you can't be sure you have on the shelf or whatever."

Emily expands on the unpredictability of consumer reactions, especially among demographics sensitive to economic fluctuations.

• Emily Reilly [04:02]: "If they see regular old things going up, they're going to freak out."

3. Brand Safety and Ad Fraud Challenges

A significant portion of the episode critiques the ongoing struggles with brand safety and ad fraud within the ad tech ecosystem. Mike expresses cynicism about the effectiveness of current brand safety measures, referencing past discussions on fraud problems.

• Mike Shields [05:11]: "I wrote about this 15 years ago... the fraud problem being a problem."

Emily agrees, likening the open web to dangerous territories where brand safety tools often fall short.

• Emily Reilly [05:52]: "There are always holes in the open web that fraudsters are going to take advantage of."

They discuss the inherent challenges of programmatic advertising and the reliance on multiple verification vendors, which adds complexity without guaranteeing safety.

4. Open Web vs. Closed Platforms: Trends and Advertiser Behavior

The duo explores the tension between advertising on the open web versus closed platforms like social media. Mike mentions a report highlighting declining search traffic as AI becomes more integrated.

• Mike Shields [08:07]: "The web's already got this thing hanging over it of like, oh my God, people are going to use it the same and it's not going to matter."

Emily counters by emphasizing the adaptability of advertisers who follow their audiences, much like the shift from traditional TV to Connected TV (CTV).

• Emily Reilly [08:27]: "Gen Z literally doesn't even know what a website is... They'll click on something on Instagram and wind up at say like a recipe site."

They note that younger demographics engage more through apps, making the distinction between open and closed platforms less relevant as advertising strategies evolve.

5. WPP’s Acquisition of Infosum: Implications for Neutrality

Mike shifts focus to corporate maneuvers within the industry, specifically WPP's acquisition of Infosum. He questions the impact of such acquisitions on the perceived neutrality of data platforms.

• Mike Shields [10:06]: "Does it change the fact this is supposed to be a neutral platform for everybody, now it's part of them?"

Emily draws parallels with other acquisitions, such as The Trade Desk's purchase of Sincera, highlighting the difficulty in maintaining neutrality once a platform becomes part of a larger holding company.

• Emily Reilly [10:35]: "Once it's owned by one company, it just, you can't decouple those two things in mind."

They discuss the challenges of integrating data capabilities into large holding companies without compromising the impartiality essential for effective advertising.

6. Evolution of Agencies and AI Integration in Ad Tech

The conversation transitions to the evolution of advertising agencies into tech-oriented entities. Emily questions the feasibility of agencies transforming into pure tech or data companies given their inherent reliance on human creativity and strategy.

• Emily Reilly [11:11]: "Their DNA is agency... they have strategists and creative teams."

Mike acknowledges the complexity, noting that while agencies incorporate technology, they remain fundamentally service-oriented.

• Mike Shields [11:25]: "They're still inherently a lot of people... they have strategists and creative teams."

They explore the integration of AI, emphasizing that while AI can enhance capabilities, it cannot entirely replace the nuanced expertise required in advertising.

7. In-Game Advertising: Current Trends and Future Prospects

In addressing in-game advertising, Mike shares his experience attending the Playfront event, finding that many presentations mirrored ideas from a decade or two prior. However, Emily cites recent developments with platforms like Roblox and Pubmatic as signs of progress.

• Emily Reilly [21:03]: "Roblox also has been working with Pubmatic for a while and they're continuing to work with Pubmatic."

They discuss how gaming platforms possess rich data and engaged audiences, making them ripe for innovative advertising strategies. Emily points out that gaming companies like Roblox are leveraging advanced targeting and data integration, positioning themselves as leaders in this space.

8. Scope Three and Broader Ambitions in Brand Safety

Mike brings up Scope Three's initiatives under Brian O'Kelly, questioning their broader ambitions beyond cleaning up digital advertising.

• Mike Shields [15:49]: "What do you make of Scope Three and what they are doing and their seemingly broader ambitions than just trying to make digital advertising cleaner?"

Emily responds by outlining Scope Three's approach to rethinking the ad tech supply chain using advanced AI, though she cautions that they still operate within the existing programmatic framework.

• Emily Reilly [16:12]: "They might use AI, so maybe it's faster or a little more accurate or precise, but it's still fundamentally plugged into the programmatic supply chain."

They deliberate on the company's reputation, with Emily noting that while Brian O'Kelly started with a sustainability-focused model, the integration of broader ad tech functionalities may blur the lines between virtuous and traditional ad tech practices.

9. The Role of Artificial Intelligence in Ad Tech

The hosts delve deeper into the integration of AI within the advertising ecosystem. Emily distinguishes between different AI models, such as ChatGPT-based systems versus neurosemantic AI, highlighting the competitive landscape of AI advancements.

• Emily Reilly [18:45]: "He's using Agentic AI... another AI in this space right now is based on ChatGPT... companies are using neurosemantic AI."

They discuss the rapid pace of AI innovation, emphasizing that smaller, nimble companies like Scope Three may lead in pioneering advanced AI solutions, whereas larger, established companies might struggle to adapt their existing platforms swiftly.

10. Conclusion

Wrapping up the episode, Mike and Emily reflect on the dynamic and often challenging landscape of the advertising industry. They acknowledge the continuous evolution driven by economic factors, technological advancements, and shifting consumer behaviors. Both express optimism for future developments while recognizing the hurdles that lie ahead.

• Mike Shields [22:36]: "Fun stuff. Let's we're going to try this again. Fun experiment, but great."
• Emily Reilly [22:42]: "Sounds great. Thanks, Mike."

This episode of Next in Media offers a comprehensive analysis of the current state of the advertising industry, underscored by insightful discussions on economic impacts, technological challenges, and strategic movements within the sector. Mike Shields and Emily Reilly provide valuable perspectives for industry professionals and enthusiasts alike, navigating the complexities of a rapidly changing media landscape.