Summary
IntentNative is building an advertising network to help websites make more money than Google AdSense by showing ads natively and targeting based on user intent.
The rise of Generative AI is transforming traditional sites with static content to interactive experiences where users ask questions, and give instructions, to AI agents. We think there are opportunities in these areas:
- This new UX captures a richer and stronger user intent, but traditional audience segments fail to use this detail.
- User content in text, image, or video is also generated in realtime, but existing campaign types don’t fit in.
- AI agents can help a user immediately purchase an item without navigating to another page.
Background
Most sites use digital advertising networks that target ads based on a user’s browsing history, demographic data or aggregate audience segment. These sites have static content that users passively consume, so they know little about users’ intent. Additionally, success is a user clicking on an ad, since these websites cannot get a user to immediately buy a product.
On the other hand, highly interactive and shopping-specific apps like Amazon and Instacart have built their own ad marketplaces based on user-intent, which monetizes significantly better. Targeting is improved since they know a user’s search query and past purchase history. Content is dynamically generated based on user’s interaction. Ads are higher ROI since users can immediately make a purchase.
Trends
The rise of large language models (LLMs) enables:
- Natural language understanding at scale → We expect more sites will become interactive, and that users will be prompting, and interact with, most websites in a matter of time
- Dynamic content everywhere → More sites will generate content based on user interaction
- AI agents to make purchases on users’ behalf → We expect most sites can get users to immediately make a purchase
As more websites understand user intent, generate content that responds to user interaction, and can directly convert users, they will be missing out on revenue by going with a browsing, demographic, or aggregate ad networks like Google AdSense. These websites won’t want to, or have the resources to, build their own intent-based ad marketplace. That’s why we’re building a plug-and-play intent-based ad network.
Additionally, LLM products like Runway are computationally expensive. To reduce cost, they have to compromise on user experience like response time, etc. This new ad network also offers an opportunity to access another revenue channel to offset the cost and enable more growth, without sacrificing user experience.
How this could work
Natively embed an ad in an LLM-generated text or image:
Return ads that are targeted based on user intent
- The publisher lists available ad space on an ad exchange using an SSP.
- A publisher’s website contains a pixel that sends data to a DMP about the website, the user, and the ad space.
- In the meantime, an advertiser configures their ads’ targeting and budget parameters using a DSP.
- To find inventory on the ad exchange that best suits the advertiser’s needs, the DSP connects with the DMP. Then a request is sent to the auction.
- The ad exchange selects an ad to match with each impression opportunity using algorithmic software.
- To display the ad to the user on the publisher’s website, the DSP sends it to the SSP.
Our proposal
We are building a SSP and Ad Exchange, in orange below. The rest, in purple, stays the same.
- SSP - Sells inventory to existing ad exchanges and our new ad exchange, thus websites have no risk of losing revenue, only upside
- Ad Exchange - A new exchange with a new algorithm that takes into account user intent to price ads.
