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The Stack: The AI Advertising Era

From bigger budgets and smarter auctions to instant TV ads, this week saw the media and ad tech industries racing toward an automated future. In today’s MadTech Daily, we cover Perplexity launching a tool to simplify online shopping, a Spanish court ordering Meta to pay $550m to digital media firms, and new EU probes into Meta.

ISBA’s latest Media Budgets Survey reveals a new outlook: 65% of UK advertisers plan to boost marketing spend in 2026. The survey shows that AI is playing a major role in media operations, brand-building is back in focus, and connected TV is stealing the spotlight.

While advertisers debate where to place ad spend in 2026, the IAB Tech Lab is future-proofing programmatic with Agentic RTB Framework (ARTF), a new protocol designed for fast auctions and reduce latency in ad delivery. Channel 4 Sales also launched Smart Ad Engine, a free tool that turns a brand’s social footprint into ready-to-air TV ads in minutes. 

AI is also reshaping commerce. Alibaba.com unveiled AI Mode, a sourcing tool that uses natural language queries to compare suppliers and deliver tailored recommendations in minutes, a process that used to take weeks.

On the legal front, Meta scored a major win as a US judge ruled its Instagram and WhatsApp acquisitions didn’t violate antitrust laws in an antitrust case brought by the FTC. The decision spares Meta from a potential breakup.

But Google wasn’t as lucky. A German court ordered the company to pay €572m (£492m) to two platforms for abusing its market dominance. The ruling follows a €2.7bn (£2.38bn) EU fine from last year.