The AdCP Hype Problem: Standardized Workflows Don’t Equal Better Outcomes
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Home Data-Driven Thinking The AdCP Hype Problem: Why Standardized AI Workflows Don’t Equal Better Media Outcomes
OPINION: Data-Driven Thinking The AdCP Hype Problem: Why Standardized AI Workflows Don’t Equal Better Media Outcomes By Dr. Aaron Andalman, Cognitiv
Monday, January 26th, 2026 – 12:35 am SHARE:
Dr. Aaron Andalman Chief Science Officer & Co-Founder
If you are feeling pressure to “do something” about Ad Context Protocol, you are not alone. Since its launch a few months ago, AdCP has been framed as a foundational step toward an “agentic” future, one where AI systems plan, execute and optimize media buys without human hand-holding. It is a compelling vision, but one that relies on capabilities that do not exist yet. AdCP may one day make buying easier, but it will not make buying better by itself. What AdCP was built to fix AdCP is built on top of Model Context Protocol (MCP), an open standard introduced by Anthropic and broadly adopted by the industry. MCP addresses a well-known limitation of large language models. While AI models have become much better at language and reasoning, they still struggle to take reliable actions inside real software. Interactions with external tools can be brittle, with models misunderstanding what actions do or invoking them incorrectly.
MCP tackles that problem by standardizing how tools describe the actions they support. And AdCP applies this idea to advertising, giving ad tech platforms a shared way to describe actions like creating a strategy or activating an audience. As a result, AI models can operate across platforms without learning a bespoke API for each one. AdCP standardizes the interface between models and advertising systems. It makes it easier for a model to discover available actions and invoke them consistently, like ordering items off a menu. That helps workflow automation scale, but it stops at execution. Standardizing how an action is triggered does not change the quality of the action itself. If a bidding strategy is poorly designed or an audience definition is weak, AdCP can help invoke it more reliably, but it cannot improve the underlying logic. That distinction matters because it reveals two bigger questions hiding behind the AdCP hype. Are “agents” ready to run advertising? Much of the excitement around AdCP is tied to autonomous agents. Yet the “agents” making headlines today are typically large language models connected to tools. These systems are excellent at interpreting instructions and coordinating actions, such as to “set up a CTV campaign,” but they are not inherently optimizing toward a business objective. They are trained to model language, not to learn through trial and error in noisy, complex environments. Today’s LLM-based agents often lack the internal feedback loops required to learn from outcomes and continuously improve performance. And those limits quickly bubble up in real-world scenarios. In a recent Wall Street Journal experiment, a state-of-the-art agent tasked with running a simple vending machine was quickly manipulated into giving away inventory and ordering a hodgepodge of items, including a live fish, a PlayStation and some kosher wine. If an autonomous system struggles to manage a vending machine – a closed environment with fixed inventory and transparent pricing – it is a stretch to expect it to reliably manage a multimillion-dollar media budget across fragmented channels, shifting auctions and adversarial market dynamics. AdCP does not unlock full autonomy. It simply enables a new way to interact with existing platforms: chat instead of dashboards. While that can be useful for operational convenience and exploration, it is a long way from a hands-off performance revolution.
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Where can AI actually improve performance? The more interesting opportunity for AI in advertising sits inside the platforms themselves. AI can materially improve how audiences are understood, how context is interpreted and how first-party data is activated. World knowledge, language understanding and reasoning can be used to enrich signals, inferring intent from content, resolving ambiguity in user behavior and translating messy business data into usable features for models. This is where AI actually moves the needle: inside systems that score impressions, predict outcomes and balance trade-offs in real time. These models can learn directly from outcomes, testing bidding strategies, audience definitions and contextual signals, then adjusting based on what actually performs. AdCP doesn’t compete with this work, but it does not replace it either. A cleaner interface for invoking tools only matters if the tools themselves are improving. Performance gains still come from better predictions and better decisions inside the platform. Implications for 2026 planning AdCP should stay on your radar. It is a sensible standard, and, over time, it may make AI-driven workflows easier to build. But it should not be the primary focus. If your goal is performance, the more important question is not how an AI chatbot invokes actions. For the foreseeable future, performance will come from platforms using AI to improve targeting, prediction and optimization at the core of programmatic buying. This is work advertisers will need to find on their platforms or build themselves. AdCP may shape how those systems are accessed. It will not determine whether they work. “Data-Driven Thinking” is written by members of the media community and contains fresh ideas on the digital revolution in media. Follow Cognitiv and AdExchanger on LinkedIn.
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The AdCP Hype Problem: Standardized Workflows Don’t Equal Better Outcomes
Dr. Aaron Andalman, Chief Science Officer & Co-Founder of Cognitiv, dissects the current fascination with Ad Context Protocol (AdCP) and highlights why its potential, while real, shouldn’t be overstated. The core issue is that AdCP, built upon Model Context Protocol (MCP), offers a standardized interface for advertising platforms, allowing AI models to interact with tools more reliably. This standardization addresses a recognized limitation of large language models – their tendency to falter when interacting with external software – but it doesn’t inherently improve the *quality* of the underlying actions.
AdCP’s function is to facilitate a “menu-like” interaction, where AI can consistently invoke actions across different platforms. However, the success of that invocation depends entirely on the quality of the action itself. A poorly designed bidding strategy or a weak audience definition, regardless of how seamlessly AdCP facilitates its execution, will still yield undesirable outcomes.
The excitement surrounding AdCP is largely tied to the concept of “agentic” AI, where autonomous systems manage advertising campaigns. However, today’s AI agents, typically large language models connected to tools, are primarily adept at interpreting instructions and coordinating actions, not at performing optimization. These systems lack the crucial feedback loops required to learn from iterative outcomes and adapt in the complex, noisy arena of real-world advertising. The well-publicized experiment with a state-of-the-art vending machine agent vividly demonstrates this limitation – even a seemingly intelligent system struggles to manage a closed environment like a vending machine.
Therefore, AdCP doesn’t unlock full autonomy; it merely provides a new way to interact with existing platforms—a shift from dashboards to a chat-based interface. While this can offer operational convenience and exploration, it’s a far cry from a hands-off performance revolution.
Looking ahead to 2026, the most significant opportunity for AI in advertising lies within the platforms themselves. AI’s true impact comes from its ability to refine audience understanding, interpret contextual signals, and activate first-party data. By leaning on world knowledge, language understanding, and reasoning, AI can enrich signals, infer user intent, resolve ambiguity, and transform messy data into usable features for models. This is where genuine performance gains will be realized – in systems capable of learning directly from outcomes, testing bidding strategies, and adjusting audience definitions in real-time.
AdCP’s value resides in its potential to simplify access to these platforms, but it won’t determine whether they actually work. The focus should remain on the platforms' capabilities – how AI improves targeting, prediction, and optimization at the core of programmatic buying. Advertisers will need to find these improvements within the systems themselves or build them independently. Dr. Andalman concludes that in 2026, the success of AdCP will depend on whether the underlying AI-powered platforms continue to mature and deliver substantive performance improvements. |