This week’s headlines underscore how AI, sustainability, and market expansion are reshaping advertising consumer engagement globally. On today’s MadTech Daily, we cover Omnicom posting a USD$941m Q4 loss following its IPG deal, WPP launching a new advertising intelligence framework, and YouTube becoming the UK’s leading living-room screen, according to a study.

Perplexity AI has pulled back from advertising, citing concerns that sponsored content could erode user trust. Executives confirmed the phaseout, arguing that confidence in the chatbot’s answers is essential to maintain engagement and subscription revenue.

Meanwhile, Meta doubled down on AI infrastructure, signing a multiyear, multibillion-dollar deal with Nvidia to purchase millions of advanced chips. The agreement reinforces Nvidia’s dominance in the AI data centre market and follows Meta CEO Mark Zuckerberg’s plan to nearly double the company’s AI capabilities.

Sustainability and industry leadership took centre stage as emerging voices from the Ad Net Zero Young Leaders group issued practical recommendations for climate action. They stressed that businesses can no longer postpone sustainability, urging executives to balance immediate commercial pressures with long-term environmental responsibility.

Global expansion continues in advertising networks, with the Alliance of Independent Agencies formally launching its Middle East chapter, featuring 23 founding member agencies. The initiative aims to provide independent agencies with a collaborative platform for growth and knowledge-sharing.

Consumer engagement metrics delivered mixed signals. In-game advertising during this year’s Six Nations drove online engagement uplifts 13% for Samsung and 18% for Virgin Atlantic but research from Quantcast shows audiences remain sceptical of the format.

Finally, Alibaba’s Qwen app continues to scale rapidly. Within six days, the platform processed over 120 million orders, with nearly half of transactions coming from county-level and rural regions. Remarkably, around 1.56 million first-time users aged 60 and above made online purchases via Qwen, reflecting AI’s growing role in driving commerce across demographics in China.