Jason Hu, founder and CEO of NexAd, joins to unpack the next generation of advertising: ad placements inside AI chatbots (think DeepAI, Character.ai, Liner) and fully automated ad ops via AI agents. We cover why chatbots behave like “answer engines” (higher intent than search), how conversation context supercharges targeting while preserving privacy via embeddings, and the real-world impact for agencies—automated onboarding, creative generation, campaign setup/management, and client comms. Jason also reflects on TikTok’s ad scale, the AI “bubble” vs. dot-com era, and the infrastructure (GPUs, energy) behind this wave. If you run paid media or build media products, this is your map of what’s coming—and how to benefit first.

Guest
Jason Hu — Founder & CEO, NexAd: https://www.nex.ad/
LinkedIn: https://www.linkedin.com/in/qitian-hu/
X: https://x.com/onjas_6

Key Takeaways

• Answer Engines = Higher Intent: Chatbots compress “search → click → compare” into a single answer flow; ad units embedded in that context convert.
• Contextual Targeting Without PII: Using embeddings preserves privacy while capturing ultra-specific intent (“car broke down at X & Y in SF”).
• AI as Staff: Treat agents as virtual employees for 80–90% of repetitive work—onboarding, creatives, campaign builds, budget iteration, reporting.
• Cost & Speed Gains: Agencies Jason works with report up to ~95% reduction in operational cost with better or equal performance.
• The Infra Is Real: This isn’t just software—GPUs, data centers, and energy provisioning are the new constraints (and opportunities).
• Ad Market Expands (Not Shrinks): Like the shift to social/search, AI ads are likely to grow the pie by improving the product.

Timestamps

00:00 – Why “Answer Engines” Beat Search — Chatbots return the answer, not just links; intent is off the charts.

02:00 – Ad Inventory Inside Chatbots — Live on major bots; conversation history enables precise, moment-of-need targeting.

06:00 – Privacy Approach — No raw chat storage; use of embeddings/anonymized intent signals.

08:30 – Workflow Automation for Agencies — AI as “virtual employees” for research, creative, campaign setup, budget iteration, reporting, and even client comms.

13:30 – Why Jason Picked Ads (TikTok lens) — The sheer scale of digital ads and how AI is changing it.

18:00 – Agencies vs. Platforms — It’s a partnership: platforms still chase advertiser performance and feedback.

22:30 – Is AI a Bubble? Lessons from Dot-Com — Revenue reality, who bears risk, and why utility outlives valuation cycles.

28:00 – The Physical World of AI — Data centers, GPUs, and energy constraints; macro tailwinds from infra build-out.

33:30 – Case Studies & Ops Impact — Small ecom wins; agencies cutting ~95% of ops costs with NexAd’s agents.

37:00 – How to Try It + Closing — nex.ad and direct email.

Sponsor
Opal — the spend platform built for performance marketers: https://opalspend.com/