AI-driven ad and commerce platforms: What marketers and retailers must know

The rise of AI-driven ad and commerce platforms is changing how companies buy ads, serve customers, and measure results. In the last quarter, major platforms leaned into full-stack AI to boost relevance, automation, and performance. Therefore, marketers and retailers must understand how these shifts affect ad economics, shopper experience, and partner strategy. This post unpacks the moves from Google, Meta, Amazon, and PayPal, explains the likely impacts, and offers short projections for business leaders.

## Google’s full-stack AI pushes ad relevance and yields a $100B quarter

Google’s recent quarter marked a milestone: Alphabet reported its first $100 billion quarter, and the company credits AI for supporting search and YouTube ad relevancy, performance, and automation. Therefore, the headline is not just revenue scale; it is the demonstration that integrated AI across the ad stack can materially change how ads are matched to users and how campaigns are run.

For advertisers, that means tools that optimize bids, creative, and targeting with less manual oversight. Additionally, Google’s AI emphasis points to faster testing and automated adjustments that can tighten the gap between ad spend and measurable outcomes. However, greater automation also raises questions about transparency and control. Brands will need new governance routines to ensure campaigns align with creative and compliance standards.

For publishers and partners, Google’s gains shift the negotiation landscape. Platforms that once relied on manual targeting or separate analytics now face pressure to adopt similar AI-driven tooling or risk losing share. As a result, agencies and in-house teams should reassess skills, measurement practices, and vendor relationships.

Impact and outlook: Expect more ad formats tuned by AI, tighter performance reporting, and growing pressure on bidders and creative teams to adapt to automated workflows. Therefore, strategic investment in AI-aware measurement and clear governance will be essential.

Source: Marketing Dive

Meta’s AI bets — how AI-driven ad and commerce platforms change marketing efficiency and cost

Meta’s AI advertising infrastructure is now a major business line, with an annual revenue run rate for its AI ad tools, including Advantage+, exceeding $60 billion. This shows that advertisers are rapidly adopting automated, AI-powered bidding and creative systems that promise efficiency gains. However, these efficiencies have trade-offs that brands and agencies should evaluate.

First, Meta’s tools emphasize automation and scale. Therefore, marketers can reduce manual campaign setup and test faster at scale. Additionally, the platform-level optimization can find audience segments and creative combinations that humans might miss. As a result, advertisers often see better short-term ROI from simplified campaign structures.

Second, there is a cost dynamic to watch. Meta’s increased automation can raise expectations for performance and push buyers to allocate more budget to the platform. Consequently, cost structures and media mix decisions may shift. Agencies should model how much performance is platform-driven versus budget-driven. Moreover, marketers must balance the convenience of automated tools with the need for brand control and nuanced messaging.

Third, Meta’s advances set a competitive bar. Therefore, companies that cannot or do not adopt similar AI tooling risk lagging in efficiency. That said, brands that prioritize control, data portability, and cross-platform strategies can mitigate concentration risk.

Impact and outlook: Expect continued adoption of AI-first ad products, rising ARR for platform owners, and a marketplace where efficiency gains coexist with new cost and governance considerations.

Source: Marketing Dive

Amazon’s DSP moves and ad growth — why retailers should rethink platform strategy

Amazon’s ad business grew strongly, with advertising up 24% in the quarter. The company says its Demand-Side Platform (DSP) is now “fully featured,” and it pairs DSP improvements with strengths in live sports content on Prime Video and new generative AI tools. Therefore, Amazon is positioning itself as a one-stop ad and commerce engine for brands that sell through the platform.

For retailers and brand advertisers, Amazon’s DSP enhancements mean more sophisticated ways to reach buyers across the shopping journey. Additionally, the integration of video content and ad tech lets brands experiment with placements that connect discovery on Prime Video to product pages and purchase paths. As a result, advertisers can better close the loop between exposure and conversion.

However, this concentration favors companies that either sell on Amazon or invest heavily in its advertising suite. Non-Amazon retail partners may need to rethink partnerships and data strategies to remain visible in a landscape where Amazon can combine viewership, browsing, and purchase signals.

Impact and outlook: Expect brands to allocate more budget to Amazon’s ad products, especially where commerce attribution is strong. Therefore, competitive differentiation will hinge on combining product availability, creative that converts, and smart use of Amazon’s expanded DSP features.

Source: Marketing Dive

PayPal’s agentic commerce push within AI-driven ad and commerce platforms

PayPal has launched a suite of “agentic commerce” services built on its payments, identity verification, and buyer protection infrastructure. These services aim to connect merchants directly to AI platforms where consumers increasingly discover and buy products. Therefore, PayPal is not just a payments layer anymore; it is moving toward becoming an active player in the shopping decision process.

Agentic commerce refers to systems that act on shoppers’ behalf — for example, recommending, comparing, or completing purchases through AI agents. PayPal’s approach leverages trust signals (payments and identity) and consumer protections to create a safer environment for agentic transactions. Additionally, merchants gain access to new discovery channels that integrate directly with payment and identity flows.

For merchants, this development offers potential new customer acquisition paths and simplified checkout experiences. However, it also introduces a choice point: whether to engage with third-party agentic systems or double down on first-party discovery and loyalty. Furthermore, brands must consider how agentic interactions affect margins, data ownership, and customer relationships.

Impact and outlook: As PayPal’s services roll out, agentic commerce could redirect some discovery and purchase intent away from traditional storefronts. Therefore, merchants should test integrations, monitor conversion and customer value, and prepare policies for agent-initiated transactions.

Source: Digital Commerce 360

Amazon’s internal agentic tools — “help me decide” and the future of retail UX

Amazon added “help me decide,” an internal agentic system that uses a user’s browsing history and preferences to recommend products with a single tap. The tool also provides clear explanations about why a product fits a shopper’s needs. Therefore, Amazon is moving from passive recommendation to active decision support.

This change affects user experience in important ways. First, shoppers receive faster, more confident choices, which reduces friction and may increase conversions. Additionally, the transparency in explanations helps build trust and reduces buyer hesitation. However, brands should watch how such agents surface products. If agentic recommendations heavily favor certain sellers or products, discoverability for smaller merchants could decline.

From a data perspective, “help me decide” relies on integrated browsing and preference signals. Therefore, the system benefits sellers who can align product information, reviews, and availability with the agent’s decision logic. As a result, merchants should invest in clearer product descriptions, better imagery, and consistent inventory to remain favored by agentic tools.

Impact and outlook: Agentic retail UX will likely accelerate impulse-free decision making, boosting conversions for well-prepared sellers. Therefore, merchants and platforms must balance convenience with fairness and transparency in product selection.

Source: Digital Commerce 360

Final Reflection: Tying AI-driven ad and commerce platforms together

Across Google, Meta, Amazon, and PayPal, the message is consistent: AI is moving from add-on automation to a core element of ad and commerce platforms. Therefore, the competitive landscape will reward platforms that weave AI into recommendation, measurement, and payment flows. This shift improves efficiency and user experience, but it also concentrates influence in large platforms and raises questions about control, transparency, and vendor dependence.

For marketers and retailers, the practical steps are clear. First, adopt AI-aware measurement and governance to preserve brand voice and compliance. Second, diversify channel strategies to avoid overreliance on any single platform. Third, invest in product data, creative, and customer trust so agentic systems and automated tools select and convert your offers.

Looking ahead, expect continued investment in agentic features that act on behalf of users, tighter integration of commerce and advertising, and new performance expectations. However, leaders who combine thoughtful governance with smart experimentation will turn these platform shifts into growth opportunities.