How Generative AI Will Impact Marketers and Consumers

Why It Matters

Interactive AI ads could reshape digital advertising by delivering hyper‑personalized experiences and higher ROAS, while a sustainable token‑subsidy model makes large‑scale deployment economically feasible.

Key Takeaways

• AI-driven ad formats will enable interactive, personalized shopping experiences
• InMobi's Glance platform generates realistic product visualizations for users
• Token costs for generative AI may be offset by ad revenue models
• Consumer research will shift to AI agents while decisions stay human
• ROAS improvements reported on visual AI commerce are “off the charts.”

Pulse Analysis

Generative AI is poised to overhaul the advertising ecosystem by turning static banner placements into conversational experiences. Marketers can embed AI agents within ad units, allowing shoppers to describe preferences, ask follow‑up questions, and receive curated product suggestions in real time. This shift aligns with a broader consumer trend toward delegating research tasks to intelligent assistants while preserving the ultimate decision‑making authority, a dynamic that promises higher engagement metrics and deeper data capture for brands.

Visual commerce stands to benefit dramatically from AI‑driven personalization. InMobi’s Glance platform exemplifies this by synthesizing realistic images of users wearing or using products, effectively eliminating the guesswork that hampers apparel and home‑goods purchases online. Early trials show return on ad spend (ROAS) soaring to levels described as "off the charts," as shoppers respond to content that mirrors their own context. The technology also opens new verticals—pet accessories, interior décor, and niche fashion—where visual fit is a decisive factor.

The primary barrier to widescale adoption remains cost. Generative models consume token credits that translate into significant expense when applied to billions of ad impressions each month. InMobi’s emerging financial model proposes that ad spend itself funds the token usage, creating a net‑positive outcome for publishers. If this balance can be achieved, the industry could witness a rapid rollout of AI‑enhanced ad formats, reshaping revenue streams and setting a new standard for performance‑driven digital marketing.