AI Will Soon Dominate Ad Buying. Will Marketers Trust the Algorithm?

Summary

WSJ Tech News Briefing: AI Will Soon Dominate Ad Buying. Will Marketers Trust the Algorithm? Release Date: March 10, 2025
Host: Charlotte Gartenberg
Duration: Approximately 10 minutes

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1. Introduction

Hosted by Charlotte Gartenberg, the episode delves into two primary topics: the increasing complexity of smart technology in modern cars and the rising dominance of artificial intelligence (AI) in the advertising industry. While advanced technologies offer enhanced functionalities and efficiencies, they also present challenges and skepticism among users and professionals.

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2. Smart Technology in Cars: A Double-Edged Sword

a. The Surge of Advanced Features

Joe Pinsker, WSJ reporter, explores the myriad of high-tech features being integrated into today's vehicles. Modern cars boast:

• Large Touchscreens & Multiple Displays: Central touchscreens supplemented by additional screens for passengers or rear seats.
• Seasonal Ambient Lighting: Customizable interior lighting that adjusts based on the season or driver preference.
• Night Vision Systems: Enhanced visibility during nighttime driving.
• Assisted Driving Systems: Automated braking and lane-keeping features.
• Rain-Sensing Windshield Wipers: Wipers that adjust speed based on rainfall intensity.

Quote:

“There’s a lot of tech throughout the cabin, threaded throughout the car that is designed for a very convenient and comfortable driving experience.” (Joe Pinsker, 02:26)

b. Consumer Backlash: Too Much Tech?

Despite the allure of these advancements, a significant portion of drivers feel overwhelmed:

• Declining Satisfaction: A survey by Strategic Vision revealed a drop in positive sentiments about intuitive controls from 79% in 2015 to 56% in 2025.
• Usability Issues: Drivers express frustration over complex systems that distract from driving, such as the need to navigate multiple touchscreens to perform simple tasks like adjusting the AC.

Quote:

“A lot of it is just hard to use and often breaks down. When it doesn't work, it is a real nuisance to a lot of people.” (Joe Pinsker, 03:15)

c. Automotive Industry’s Response

Car manufacturers are adapting to consumer feedback by:

• Reverting to Physical Controls: Moving essential functions back to tangible knobs and buttons to enhance safety and ease of use.
• Regulatory Influence: European safety organization Euro NCAP will incentivize the placement of basic controls in physical locations to improve safety standards starting next year.

Quote:

“The pendulum is swinging back towards pushing stuff and twisting stuff.” (Joe Pinsker, 04:39)

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3. AI in Ad Buying: Enhancing Efficiency or Eroding Trust?

a. The Rise of AI-Powered Advertising Tools

Patrick Coffey, WSJ reporter, discusses how major tech companies like Google and Meta are integrating AI into their advertising platforms:

• Automated Decision-Making: Tools like Google’s Performance Max and Meta’s Advantage Plus allow AI to handle ad placement, targeting, and even ad creation based on predefined budgets and goals.
• Industry Adoption: Competitors such as Amazon, TikTok, Pinterest, and Yahoo have launched similar AI-driven ad solutions to capitalize on increased efficiency and revenue generation.

Quote:

“They essentially make decisions on behalf of the advertiser… what the final ad even looks like.” (Patrick Coffey, 06:07)

b. Marketers’ Mixed Reactions

While AI tools promise enhanced efficiency, marketers exhibit mixed feelings:

• Loss of Control: Advertisers are uneasy about relinquishing control over where and how their ads appear, leading some to reject AI tools entirely, especially in sensitive categories like alcohol.
• Transparency Concerns: The opaque nature of AI decision-making processes has earned these tools the label of "black boxes," causing distrust among advertisers who prefer detailed oversight.

Quote:

“A lot of them have accepted it with complaints, grumbles, a lot of them don't like it at all.” (Patrick Coffey, 07:52)

c. Impact on the Advertising Workforce

The automation of ad planning and buying is reshaping job roles within tech companies:

• Reduced Need for Salespeople: Increased reliance on AI diminishes the necessity for traditional sales roles, shifting focus towards customer service and platform support.
• Skill Adaptation: Marketers must adapt by balancing AI's capabilities with strategic oversight to maintain effective advertising campaigns.

Quote:

“They have to, as one ad buyer told me, relinquish control and trust the algorithm to some degree.” (Patrick Coffey, 08:26)

d. Benefits of AI in Advertising

Despite reservations, AI offers tangible benefits:

• Increased Efficiency: Automated processes free up time for marketers to focus on creative aspects and explore new platforms.
• Potential for Higher Sales: When functioning optimally, AI-driven campaigns can lead to significant sales boosts.

Quote:

“In some cases, they certainly do [boost sales].” (Patrick Coffey, 09:03)

e. Tech Giants’ Perspective

Google and Meta defend their AI tools by emphasizing their alignment with advertisers’ interests and the simplicity they offer to small businesses:

• Designed for Usability: AI tools are crafted to cater to non-expert users, making advertising more accessible for small enterprises.
• Revenue Growth: Automation encourages increased ad spending, benefiting platforms financially.

Quote:

“They’ve both said that the response has been overwhelmingly positive… It’s helpful to them to be able to just set it and forget it.” (Patrick Coffey, 09:41)

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4. Conclusion

The episode underscores the delicate balance between technological advancement and user autonomy. In automotive technology, the push for higher sophistication must be tempered with usability and safety considerations. Similarly, in advertising, while AI promises enhanced efficiency and sales, it challenges traditional notions of control and transparency, leading to a cautious reception among marketers. As technology continues to evolve, industries must navigate these complexities to foster trust and maximize benefits.

Produced by Jess Jupiter with Supervising Producer Kathryn Millsop.

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Notable Quotes with Timestamps:

• Joe Pinsker (02:26): “There’s a lot of tech throughout the cabin, threaded throughout the car that is designed for a very convenient and comfortable driving experience.”
• Joe Pinsker (03:15): “A lot of it is just hard to use and often breaks down. When it doesn't work, it is a real nuisance to a lot of people.”
• Joe Pinsker (04:39): “The pendulum is swinging back towards pushing stuff and twisting stuff.”
• Patrick Coffey (06:07): “They essentially make decisions on behalf of the advertiser… what the final ad even looks like.”
• Patrick Coffey (07:52): “A lot of them have accepted it with complaints, grumbles, a lot of them don't like it at all.”
• Patrick Coffey (08:26): “They have to, as one ad buyer told me, relinquish control and trust the algorithm to some degree.”
• Patrick Coffey (09:03): “In some cases, they certainly do [boost sales].”
• Patrick Coffey (09:41): “They’ve both said that the response has been overwhelmingly positive… It’s helpful to them to be able to just set it and forget it.”

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This comprehensive summary provides an overview of the key discussions in the episode, highlighting the advantages and drawbacks of advanced technologies in cars and AI-driven advertising. It incorporates direct quotes with timestamps to emphasize critical points and offers insights into the evolving landscape of technology and its impact on consumers and professionals alike.

Transcript

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[Charlotte Gartenberg]

It's Monday, March 10th. I'm Charlotte Gartenberg for the Wall Street Journal. Today's new cars have lots of bells and whistles when it comes to tech. Lane sensing. Extra screens, windshield wipers that detect rain, interior mood lighting. And while some drivers love high tech features, others say it's too much. Then artificial intelligence will soon dominate ad buying. But marketers have mixed feelings. AI tools could boost sales and increase efficiency, but with less transparency. WSJ reporter Patrick Coffey tells us how advertisers are grappling with the trade offs. But first, is smart tech in cars getting too smart? WSJ reporter Joe Pinsker finds that some drivers wish their cars were just a little bit dumber. Joe my car is not super smart, so give me a picture here. How tricked out can a car get?

[Joe Pinsker]

A car can have a very big touchscreen. It can have a couple other fun little trimmings like seasonal ambient lighting is something that's out there these days. Night vision perhaps. Also, if one screen wasn't enough in the middle of the car, you can even have one maybe, maybe on the passenger side or in the back seats, too. Some of the other really common things out there today are what are called assisted driving systems. So things that brake the car automatically or are keeping you in the lane. A lot of cars today also come with apps. You can start them remotely through an app. Some cars have rain sensing windshield wipers. So there's sort of a lot of tech throughout the cabin, threaded throughout the car that is designed for a very convenient and comfortable driving experience.

[Charlotte Gartenberg]

But you're reporting that many drivers are saying the smart tech in cars is too much.

[Joe Pinsker]

Yeah, I was looking at some interesting survey data from a market research firm called Strategic Vision, and they look at how people feel about all sorts of different aspects of their cars. And the one that really stuck out to me is just that over the past 1010 years, the percentage of people who say that they feel positively about how intuitive the controls of their car are, it fell from 79% in 2015 to 56% last year and there's this sort of similar drop if you ask people about how they feel about the dashboard displays and the screen interfaces in their car. There are a bunch of kind of tech related things where people have not been feeling quite as great.

[Charlotte Gartenberg]

So what are some of the specific critiques that drivers have had?

[Joe Pinsker]

One critique is that some of this is just all too much. They want to be able to just do simple stuff like turn on the AC in their car and not have to tap a touchscreen a few different times while taking their eyes off the road. A lot of this technology is actually quite great when it works really well. And in general people actually want stuff in their cars. The problem is that a lot of it's just hard to use and often breaks down. There are all these ways in which tech can make things better when they work, but when they don't, it is a real nuisance to a lot of people.

[Charlotte Gartenberg]

How are car companies reacting to some of this? Consumers not liking the super duper smart car so much?

[Joe Pinsker]

Some are continuing to put a lot of bells and whistles into cars and they are not incorrect in thinking that a lot of people do want this stuff. But a few have moved some of the controls of a car back out of a touchscreen and and into physical knobs and buttons. And one important thing coming up in this department is that there's a vehicle safety testing organisation in Europe called Euro ncap. And starting next year they're going to start saying that cars are safer if they move certain basic controls back to physical places instead of using a touchscreen. So are touchscreens going to go away? No. But there are certain ways in which maybe the pendulum is swinging back towards pushing stuff and twisting stuff.

[Charlotte Gartenberg]

That was our reporter Joe Pinsker. Coming up, advertisers are grappling with the trade offs of AI powered ad planning and buying tools. Can they let go and just trust the algorithm? That's after the break.

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[Charlotte Gartenberg]

Big tech platforms are moving towards more automation and sales. AI tools from companies like Google and Meta could make ad campaigns more efficient according to their developers. And while many marketers use these tools, they have mixed feelings about some of the trade offs. Our reporter Patrick Coffey covers marketing and advertising and he joins us now with more. All right, Patrick, what are these AI powered ad planning and buying tools? How do they work?

[Patrick Coffey]

They basically make decisions on behalf of advertisers. In 2021, Google released a product called Performance Max and essentially allows advertisers to go into Google's ad platform, make a couple of decisions, like how much money they want to spend and perhaps most importantly, their sales goals for the campaign, or click through goals and then they essentially press go and let the campaign run by itself. And the AI makes decisions on behalf of the advertiser, like where they think the ad should run or what kinds of consumers it thinks the ad should target. And in some cases, though not necessarily Google, what the final ad even looks like. A year after Google, Meta also released their own AI suite of tools called Advantage Plus. Since then they've done all kinds of variations on it and also within the Last year, Amazon, TikTok, Pinterest, Yahoo have all rolled out similar tools. Analysts think that any company that can release this kind of tool is going to do it because it helps them make more money on their advertising.

[Charlotte Gartenberg]

How is that so different from how these plans are put together without these AI powered tools?

[Patrick Coffey]

Usually advertisers do it manually, as Google and Meta say, where they make all the decisions. They say, this is the platform or website I want my ads to run on, this is the exact consumer group that I want to target, this is the amount that I want to spend, etc. But now the AI makes a lot of those decisions on behalf of the advertiser. And perhaps most importantly, in a lot of cases, the advertiser can't see what decisions the AI makes.

[Charlotte Gartenberg]

What have advertisers said about this sort of lack of control?

[Patrick Coffey]

A lot of them have sort of accepted it with complaints, grumbles, a lot of them don't like it at all. A number of large advertisers have declined to use the AI products altogether because for example, if they're in restricted categories like alcohol, they don't trust the algorithms to ensure that their ads don't run on pages targeting children or YouTube accounts that children watch. And some of them are just not comfortable not knowing exactly where the ads run.

[Charlotte Gartenberg]

How is all of this going to change marketers jobs?

[Patrick Coffey]

Essentially they have to, as one ad buyer told me, relinquish control and trust the algorithm to some degree. And a lot of them are just not comfortable doing that because over the last decade plus, as we've had more and more platforms and more and more ways to reach consumers, their response has been okay, but we spend so much money that we want to have more control over where our ads run and what they look like and who they target. And now they're essentially being asked to back off by the biggest tech companies that control the ad market.

[Charlotte Gartenberg]

What are some of the benefits of these tools from a marketing perspective?

[Patrick Coffey]

The pro from marketers is they essentially say, we don't really care where our ads go or what the AI does as long as our sales go up. And in some cases they certainly do. In other cases, the automation allows them to spend less time setting up the campaign and more time going back and figuring out what the art should look like and trying other platforms, like, oh, should we run ads on Reddit, et cetera.

[Charlotte Gartenberg]

Patrick, you reported that some marketers now call Google and Meta's AI tools black boxes because of the potential lack of transparency. What have Google and Meta said about their AI tools?

[Patrick Coffey]

They've both said that the response has been overwhelmingly positive, that they designed all these in advertisers interest, and that there are within the platforms choices that advertisers can make before the AI takes over. And another important point is that the majority of ad revenue for these big tech companies comes from small businesses, comes from mom and pop shops who buy ads on Facebook. And they're not really advanced enough to think about all these details. So it's helpful to them to be able to just set it and forget it. And that's also good for Facebook because it makes it more likely that they're gonna spend more money on the ads.

[Charlotte Gartenberg]

In addition to marketers. What other jobs are affected by this?

[Patrick Coffey]

It's also the jobs at the tech companies because in a way, they have less need for salespeople to interact directly with advertisers because they can have customer service people. But a lot of times there's really no one to guide the advertiser. They just kind of have to work the platform themselves and then again, trust the algorithm to do what's best.

[Charlotte Gartenberg]

That was our reporter Patrick Coffey. And that's it for Tech News Briefing. Today's show was produced by Jess Jupiter with supervising producer Kathryn Millsop. I'm Charlotte Gartenberg for the Wall Street Journal. We'll be back this afternoon with TNB Tech Minute. Thanks for listening.

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