Whitepaper: When Bots Buy – What Happens To Advertising?

Overview

Shopping bots are AI agents that act on behalf of consumers – identifying needs, researching products, and making purchases based on user preferences. Already, 61% of U.S. shoppers use AI tools like ChatGPT for shopping tasks, suggesting dedicated shopping bots will find swift adoption once entering the market. Adoption will accelerate as bots integrate into smartphones, messaging apps, and smart home devices, potentially surpassing the adoption pace of mobile or streaming.

This document explores the impact the advent of AI-based shopping bots will have on advertising, what that means for AdTech vendors, publishers, and advertisers, and what they can do to successfully navigate the future agentic ecommerce.

This whitepaper contains:

  1. Executive Summary
  2. Understanding Shopping Bots and Their Adoption
  3. The Evolution of Shopping: The Shopping Bot Purchase Journey
  4. Shopping Bot Protocols and Standards
  5. Consequences for Brands: The Collapse of Direct Response Advertising
  6. Consequences for Publishers: Monetizing in a Bot-Driven World
  7. Consequences for AdTech Vendors: Adapt or Perish
  8. Vertical Differences: Disparate Impacts
  9. B2C vs. B2B in the Age of Shopping Bots
  10. Ethical, Legal, and Regulatory Implications
  11. Conclusion: Navigating the AI E-Commerce Era

Companies covered

  • Amazon
  • AppLovin
  • Google
  • Magnite
  • Meta Platforms
  • PubMatic
  • The Trade Desk

Regions covered

United States, worldwide.

Figures and Tables

This whitepaper has 27 pages and the following figures and tables:

  • Figure 1: 2024 Share of U.S. Consumers Using AI Chatbots for Shopping Tasks, %
  • Figure 2: The Six Steps of the Shopping Bot Journey
  • Table 1: Impact of Shopping Bots On Advertising Channels
  • Table 2: Impact of Shopping Bots By Industry Vertical