In today’s world, where technology is developing at an incredible pace, OpenAI is implementing controversial “improvements” in ad creatives, changing headlines and links without human oversight. Simultaneously, media giants, including CBS and CNN, are actively entering into partnerships with betting companies, raising questions about the boundaries of ethics and transparency in the run-up to elections. These changes are shaping a new reality for digital arbitragers and marketers, offering both unprecedented opportunities and significant risks.
OpenAI and Ad “Improvements”: Automation or Loss of Control?
Since launching its advertising platform earlier this year, OpenAI has emphasized the importance of safe and relevant advertising. However, recent “improvements” to ad creatives, which can affect everything from the headline to the target link, raise serious concerns.
Essentially, this means the potential exclusion of human control from the creative decision-making process. We, as digital arbitragers, see this as a double-edged sword.
On the one hand, automation can reduce CPM and simplify scaling. On the other hand, without adequate testing and transparent statistics, it can lead to budget waste.
Media and Gambling: A New Era of Partnerships
From Prediction Markets to Direct Sportsbooks
“Media outlets used to justify collaborations with prediction markets like Kalshi and Polymarket by saying they weren’t exactly gambling. But now CBS is openly partnering with DraftKings, showcasing their branding on air during elections,” Status reports.
CNBC became the first news organization to partner with Kalshi, integrating prediction data into its news. Now CBS, CNN, Fox News, and Associated Press also have deals with Kalshi.
Substack and Dow Jones, parent company of The Wall Street Journal, are partnering with Polymarket. These “prediction markets” deny that they are sportsbooks, although they accept bets on sports and partner with sports leagues.
But now CBS is taking the next step, directly partnering with DraftKings, which means open integration of a betting brand into news content.
Sports Sponsorships: The New Reach Economy
Amid growing pressure on marketers to prove advertising ROI, spending on traditional ad placements during NBA games is no longer an obvious choice, as Digiday reports. Instead, sponsorships are becoming an increasingly popular way for brands to create associations with the NBA and its players, going beyond intrusive 30-second spots.
Sponsorship deals now account for about 15% of NBA revenue, reaching $1.9 billion, according to Sportico. We see potential in this for programmatic advertising and banners in short videos, where you can get CPM cheaper than 50 rubles.
- Ledger, a blockchain company, signed a deal with the San Antonio Spurs. According to the company, Spurs fans are 4.8 times more likely to name Ledger as a leading firm in its category and twice as likely to prefer it over competitors. This is real math proving effectiveness.
- However, large sports partnerships require careful verification of effectiveness. Adidas, which spent over $1 billion on marketing during the World Cup, is now under pressure from investors demanding proof of ROI.
Frequently Asked Questions
What is the danger of OpenAI’s ad “improvements”?
The main danger lies in the loss of human control over creatives, which can lead to irrelevant or ineffective advertising, as well as potential reputational risks. This requires thorough hypothesis testing and continuous monitoring.
Why do media partnerships with sportsbooks raise questions?
Such partnerships blur the lines between news content and gambling advertising, which can undermine trust in the media and raise ethical questions, especially in the context of election coverage.
What are the alternatives to expensive advertising contracts with celebrities?
Alternatives include strategic sponsorships, banner advertising in short videos (YouTube Shorts, TikTok, Reels), where you can get cheap reach and mass reach for pennies. This allows you to not pay influencers, but get transparent statistics and test hypotheses for 1000 rubles.
Conclusion
The world of advertising and media is rapidly changing. While OpenAI experiments with creative automation, media giants are looking for new revenue streams in partnerships with sportsbooks. We, as arbitragers, see both risks and huge opportunities for those who are willing to adapt.
Forget about bloggers and expensive contracts. Today, CPM cheaper than 50 rubles for millions of reaches is a reality that can be achieved through banner advertising in Shorts. Do you want to buy reach without creating a video and get a native banner in Shorts? Contact us to find out how we can help your business get mass reach for pennies with transparent statistics.