Is Enshittification Really Such A Bad Thing?; The Android Beta Reveal | AdExchanger
image/svg+xml:
Topics
Latest
Marketers
Agencies
Publishers
Technology
Platforms
Identity
Measurement
Data Privacy
Artificial Intelligence
CTV
Commerce
AdExplainer
Exclusive Report
Daily News Roundup
Opinion
All Columns
Data-Driven Thinking
On TV & Video
The Sell Sider
Content Studio
Comic
Contributor Guidelines
About Us
Advertise
Newsletter
AdExchanger Advisory Board
About Us
Contact Us
Events
Programmatic I/O New York
AdExchanger Awards
Webinars
All Events
Network Events
Podcasts
AdExchanger Talks
The Big Story
Inside the Stack
Programmatic I/O New York
Become an AdHero
Subscribe
Sign In
Sign In
Topics
Latest
Marketers
Agencies
Publishers
Technology
Platforms
Identity
Measurement
Data Privacy
Artificial Intelligence
CTV
Commerce
AdExplainer
Exclusive Report
Daily News Roundup
Opinion
All Columns
Data-Driven Thinking
On TV & Video
The Sell Sider
Content Studio
Comic
Contributor Guidelines
Events & Awards
Programmatic I/O New York
AdExchanger Awards
Webinars
All Events
Network Events
Podcasts
AdExchanger Talks
The Big Story
Inside the Stack
Subscribe Free
Sign Up
About Us
Advertise
Newsletter
AdExchanger Advisory Board
About Us
Contact Us
CONNECT
Home Daily News Roundup Is Enshittification Really Such A Bad Thing?; The Android Beta Reveal
Daily News Roundup
Is Enshittification Really Such A Bad Thing?; The Android Beta Reveal By AdExchanger
Monday, December 1st, 2025 – 12:03 am
SHARE:
More Better Ads
For all the talk of “enshittification” on the web thanks to advertising, evidence suggests that increased ad loads don’t always repel consumers.
That was the argument put forth by US District Judge James Boasberg when he dismissed the FTC’s antitrust case against Meta last month.
While that argument might feel counterintuitive, there is some truth to it, writes Eric Seufert at Mobile Dev Memo.
The FTC had argued that Meta demonstrated its monopolistic control by steadily increasing the ad load on Instagram without any loss in consumer engagement. After all, if Facebook and Instagram had stronger competitors, Meta wouldn’t be able to ramp up its ad load because users could flee.
But, according to Judge Boasberg, user behavior doesn’t change dramatically when there are fewer ads. In fact, showing Facebook users no ads at all results in people spending just 7% more time on the platform – which, in Boasberg’s view, proves that user preference for fewer ads is “slight.”
Boasberg added that less than 0.1% of EU users signed up for Meta’s paid ad-free experience, which begs the question of whether people are willing to pay much at all to avoid ads.
According to Seufert, consumers may not mind more ads – so long as ad quality and targeting effectiveness also improve over time.
AdsGPT
Just last year, during an interview at Harvard Business School, OpenAI Sam Altman described advertising as “uniquely unsettling” and a “last resort for us as a business model,” Engadget reports.
But, just last month, he first more-than-hinted that ChatGPT will include ads someday. (Another big hint came over the summer when Altman hired Fidji Simo, who previously built out Facebook’s ad network and then Instacart’s ad business as its CEO.)
And here’s another sign: Altman recently observed to Ben Thompson of Stratechery that Instagram successfully made the leap from ad-free to oversaturated by brands, and yet people actually enjoy many Instagram ads.
But now we have an even clearer signal that ChatGPT will no doubt introduce advertising – and it showed up in the latest beta Android release.
As first noted by Tibor Blaho, lead engineer for AIPRM, a Chrome extension that makes it easier to interact with AI platforms, the new Android beta code “includes new references to an ‘ads feature’ with ‘bazaar content’, ‘search ad’ and ‘search ads carousel.’”
Well then. Bring on the AI adshittification, we guess.
Good Boy, Sparky
Many agencies and SaaS tech vendors have introduced AI chatbot products with human names, and sometimes even an AI-generated picture and backstory. Others have defaulted to referring to their chatbots as a “copilot.”
But the biggest retailers seem to be going with a more puppyish persona for their AI-based shopping chatbots. Amazon has Rufus, and Walmart’s shopper bot, which was introduced to its app in June, is called Sparky. It’s built on OpenAI’s ChatGPT model.
Which is all a lead-up to the news that Walmart is considering – and has for some months been testing – new ad units in its AI chatbot feature, The Wall Street Journal reports.
A Sponsored Prompt unit shows a click-to-buy ad below the organic result of a search although, to date, clicks on the new Sparky ads have been few and far between. That’s according to advertisers who have tested the sponsored sub-prompts.
However, brands are eager to continue testing and observing any generative AI prompt ads they can, says Simon Poulton, EVP of innovation at performance agency Tinuiti, so they’ll take whatever Sparky brings them.
But Wait! There’s More!
Now that its merger with IPG is affirmed, Omnicom may have to kill its darlings to succeed. [Adweek]
USA Today Co., Vox Media, The Arena Group and BuzzFeed join the RSL Collective’s AI content licensing framework. [Digiday]
Shopping on TikTok is a lot like QVC. [NYT]
How Black Friday became “a month of margin-killing madness” – and why brands keep falling into the discount trap. [The Drum]
Thanks for reading AdExchanger’s Daily News Roundup. Want it by email? Sign up here.
Next In Daily News Roundup
Daily Mail Launches A Social Media Agency; AI Eats The Food Blogs’ Lunch
Related Stories
Daily News Roundup
TJX Wins Without An RMN; Unlearning To Crawl
Daily News Roundup
All Aboard The AIO Train To Nowhere; Talk About Overfeeding
Daily News Roundup
Pin Your Hopes To Ad Tech; Retail Media Ex Machina
Daily News Roundup
Robbing Retail To Pay AI; Word From The Council
Must Read
Technology
How AudienceMix Is Mixing Up The Data Sales Business
AudienceMix, a new curation startup, aims to make it more cost effective to mix and match different audience segments using only the data brands need to execute their campaigns.
Digital Out-Of-Home
Broadsign Acquires Place Exchange As The DOOH Category Hits Its Stride
On Tuesday, digital out-of-home (DOOH) ad tech startup Place Exchange was acquired by Broadsign, another out-of-home SSP.
Social Media
Meta’s Ad Platform Is Going Haywire In Time For The Holidays (Again)
For the uninitiated, “Glitchmas” is our name for what’s become an annual tradition when, from between roughly late October through November, Meta’s ad platform just seems to go bonkers.
antitrust
Closing Arguments Are Done In The US v. Google Ad Tech Case
The publisher-focused DOJ v. Google ad tech antitrust trial is finished. A judge will now decide the fate of Google’s sell-side ad tech business.
Programmatic
Wall Street Wants To Know What The Programmatic Drama Is About
Competitive tensions and ad tech drama have flared all year. And this drama has rippled out into the investor circle, as evident from a slew of recent ad tech company earnings reports.
Platforms
Omnicom Allegedly Pivoted A Chunk Of Its Q3 Spend From The Trade Desk To Amazon
Two sources at ad tech platforms that observe programmatic bidding patterns said they’ve seen Omnicom agencies shifting spend from The Trade Desk to Amazon DSP in Q3. The Trade Desk denies any such shift.
Popular
Social Media
Meta’s Ad Platform Is Going Haywire In Time For The Holidays (Again)
For the uninitiated, “Glitchmas” is our name for what’s become an annual tradition when, from between roughly late October through November, Meta’s ad platform just seems to go bonkers.
Platforms
Omnicom Allegedly Pivoted A Chunk Of Its Q3 Spend From The Trade Desk To Amazon
Two sources at ad tech platforms that observe programmatic bidding patterns said they’ve seen Omnicom agencies shifting spend from The Trade Desk to Amazon DSP in Q3. The Trade Desk denies any such shift.
Digital Out-Of-Home
Broadsign Acquires Place Exchange As The DOOH Category Hits Its Stride
On Tuesday, digital out-of-home (DOOH) ad tech startup Place Exchange was acquired by Broadsign, another out-of-home SSP.
Technology
How AudienceMix Is Mixing Up The Data Sales Business
AudienceMix, a new curation startup, aims to make it more cost effective to mix and match different audience segments using only the data brands need to execute their campaigns.
antitrust
Closing Arguments Are Done In The US v. Google Ad Tech Case
The publisher-focused DOJ v. Google ad tech antitrust trial is finished. A judge will now decide the fate of Google’s sell-side ad tech business.
Join the AdExchanger Community
Join Now
Your trusted source for in-depth programmatic news, views, education and events.
AdExchanger is where marketers, agencies, publishers and tech companies go for the latest information on the trends that are transforming digital media and marketing, from data, privacy, identity and AI to commerce, CTV, measurement and mobile.
NEXT EVENT
Most Powerful Women
December 4, 2025CurrentNew York, NY
Learn More
ABOUT ADEXCHANGER
About Us
Advertise
Contact Us
Events
Subscribe
RSS
Cookie Settings
Privacy & Terms
Accessibility
Diversity, Equity, Inclusion & Belonging
CONNECT
© 2025 Access Intelligence, LLC - All Rights Reserved |
Is Enshittification Really Such A Bad Thing?; The Android Beta Reveal
The recent developments surrounding advertising, particularly as highlighted in Eric Seufert’s Mobile Dev Memo analysis, suggest a complex and potentially nuanced debate regarding the implications of increased ad loads on platforms like Instagram and Facebook. The core argument, as articulated by Judge James Boasberg in the FTC’s case against Meta, centers on the surprisingly low sensitivity of user engagement to increased advertising. Boasberg’s judgment – that a 7% increase in time spent on a platform is “slight” – challenges the conventional wisdom that consumers universally resent more ads. This isn’t simply about user satisfaction; it’s about the absence of a clearly defined alternative. If users aren't dramatically fleeing a platform due to more ads, it suggests that the perceived value of the platform outweighs the annoyance of advertising, at least for now.
Furthermore, the potential for improved ad quality and targeting efficacy becomes a crucial factor. Consumers may be willing to tolerate a higher volume of ads if, simultaneously, they experience more relevant and effective advertising experiences. This presents a significant opportunity for advertisers and platforms.
The growing interest in AI-driven advertising further complicates the landscape. OpenAI’s Sam Altman’s initial reservations about advertising (“uniquely unsettling” and a “last resort”) are being rapidly reconsidered, driven by the potential of ChatGPT’s capabilities. Altman’s recent hints at incorporating advertising into ChatGPT and the subsequent hiring of Fidji Simo, previously instrumental in building Facebook and Instacart's ad networks, signal a strategic shift. The successful leap from ad-free Instagram to oversaturated brands – a phenomenon observed by Instagram – indicates a willingness among consumers to engage with ads if they are presented in a creatively compelling manner.
The manifestation of this shift is readily apparent in the Android beta code, which now includes references to “ads features,” “bazaar content,” and “search ad” functionalities. This isn’t just theory; it’s being actively tested by retailers like Walmart, who have deployed AI-powered shopping chatbots with puppy-like personas – Sparky being the name chosen for their chatbot. Walmart’s experimentation with “Sponsored Prompt” units – click-to-buy ads appearing below organic search results – demonstrates a tangible effort to integrate advertising into this emerging channel. Although initial click-through rates are low, the willingness of brands, exemplified by agencies like Tinuiti and its EVP Simon Poulton, to continue testing provides valuable insights.
Ultimately, the rise of AI in advertising represents a potential inflection point. The challenge for both consumers and advertisers will be to determine if this new technological integration can genuinely enhance the user experience, or if it will simply exacerbate existing concerns about ad saturation and brand intrusion. The continued observation and experimentation, as seen with initiatives like Walmart's Sparky chatbot, will be critical in shaping the future of advertising. |