Social & Advertising · via Digiday

How AI costs are quietly reshaping principal media deals

18h ago · curated by Catalyst Web Trendz

How AI costs are quietly reshaping principal media deals

The ad industry doesn’t have a price for AI yet. That doesn’t mean nobody’s paying for it. One CMO found that out mid-negotiation. Deep into a holdco renewal on a media account, they got an offer nobody put in front of them before. The holdco would eat the entire AI infrastructure bill provided 70% of the media budget ran through principal inventory. It wasn’t a clean swap. Service costs, discounts, and pricing terms were all folded into the same conversation. But principal media was one of the biggest chips on the table. “Principal media is absolutely a negotiation lever in more conversations like this now,” said an ad exec, who agreed to…

This is a curated summary. The full story was reported by Digiday.

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