Taboola hopes to attract SMBs with its AI ad chatbot Abby

The news: Programmatic ad tech firm Taboola will launch an artificial-intelligence-powered advertising chatbot named Abby aimed at helping small and medium-sized (SMBs) businesses use its platform, per Business Insider reporting.

• Built with GPT-4o and Taboola data, Abby will help small businesses navigate the tricky language of digital advertising by streamlining the process and lowering the barriers to entry for time-strapped entrepreneurs.
• When customers give Abby simple instructions like, “I’m a florist and want more people to come to my site to buy flowers,” the chatbot will help generate ad creative and recommend placements across Taboola’s network of publishing partners, per Business Insider.

AI and onboarding: AI is making a splash in the digital advertising industry throughout the funnel, but it has also opened up new pools of ad spend from businesses by letting major ad platforms significantly reduce the barrier to entry.

Recent launches of AI advertising tools by Meta, Google, and others have helped smaller businesses enter their ad ecosystems by assisting them with generating creative and recommending ad space.

The SMB opportunity: Ad industry leaders like the Big Four firms have invested hundreds of millions in AI products, but demand for AI is growing among small businesses as well.

• 39% of US small businesses said they’re currently using AI in their operations, per a May Thryv survey. Twenty-four percent said they plan to incorporate it in the future, while 42% said they’re unsure. That hesitation may be caused by uncertainty about AI costs, but AI marketing product messaging is increasingly focusing on ease of use.
• GoDaddy has also launched an AI-powered ad platform specifically aimed at startups and SMBs. As an internet domain registry, GoDaddy has a customer base that is largely composed of small companies.
• As with GoDaddy, Taboola’s long history of publisher partnerships and well-established place in the digital ad ecosystem could help it attract small business clients. Small businesses may be eager to advertise alongside the company’s premium inventory of more than 9,000 publishers, including Apple News and Business Insider.

Our take: The rapidly growing digital advertising industry could see an even greater influx of spending if small businesses bite at opportunities AI provides. But potential hangups remain: The barrage of AI products could confuse uninitiated marketers, and major AI ad product launches from Metasuggest that some tools may be hitting the market before they’re fully operational.