AI is not just changing the quality of what consumers see; it is changing how they access information altogether. The rise of "answer engines" like ChatGPT, Claude, and Gemini represents an existential threat to the traditional open web. These tools provide direct answers to user queries, often bypassing the need for a user to ever visit the original publisher’s website.
For publishers, this means a potential collapse in referral traffic, which in turn shrinks the audience and the advertising inventory they can sell. The situation is further complicated by the development of AI "agents" like Muse and Dots. These products are designed to perform tasks on behalf of a user—such as booking a flight or researching a product—by crawling websites directly.
The tension between these agents and media owners is already boiling over. Recently, Amazon took the step of blocking Muse from crawling its site. While the motivations behind such disputes vary, they highlight a core problem for any ad-supported destination: an AI agent can extract all the utility and data from a website without ever "viewing" the advertisements that fund that site’s existence.
As the digital ecosystem becomes more mediated by non-consuming AI entities, the value of physical space—where a human must physically be present to interact with the world—becomes an increasingly attractive proposition for marketers.
The Commodification of the Physical World
As out-of-home advertising becomes more sophisticated, the logic of "retail media"—where retailers use their own data and physical footprints to sell ads—is expanding into almost every other sector. Any company that controls a physical space where people spend time is now a potential media owner. Rideshare vehicles, commercial airlines, grocery store aisles, and shopping malls are all being reimagined as high-value advertising inventory.
However, this "omnipresence" of advertising in the physical world is not without its critics. In major urban centers like New York City, the proliferation of digital kiosks and screens can feel like an environmental scourge. New York Times journalist Ezra Klein recently addressed this sentiment on his podcast, expressing a sense of sadness at the way public spaces are being surrendered to constant commercial messaging.
Klein noted that while the common defense for these ads is that they subsidize public services, the reality is often less impactful. The Metropolitan Transportation Authority (MTA), for example, reportedly receives only about 1% of its operating revenue from advertising. This raises a difficult question for urban planners and citizens: would the public be willing to pay slightly more for services in exchange for an ad-free environment?
This tension highlights the fundamental difference between digital and physical advertising. In the digital world, consumers have some level of agency; they can close a tab, delete an app, or put down their device. In the physical world, there is no "opt-out" button. You cannot close a subway platform or ignore a billboard that dominates your commute.
Talking Heds: Industry Moves and Market Shifts
While the OOH boom reshapes the physical landscape, several other key developments are currently defining the media and advertising industries:
