OP #288: The Evolution of Brand Marketing: From TV to AI Agents (2024 Update)

Taking a thought piece on marketing from 2018 and updating it for 2025.

Author

Darren Herman
February 25, 2025

Happy Tuesday. I’m on the West Coast this week at a company offsite and spending time with some of our key LA-based partners. I do not get out here often so I like making the most out of every trip.

This article that references Similarweb data is why I write about AEO - answer engine optimization. If you have no idea what I’m talking about, please read OP #286. If you run a company or are a marketer, this is a very important topic. And if you want some more data about this, here’s a good piece from Bain & Co about zero-click searches.

For those watching the economy, keep your eyes on the CNN Fear & Greed index. Also, finally, the Rolex market seems to be cooling: Rolex market price index.

Anyone want to test their AI knowledge? McKinsey put this piece together which asks some basic AI questions that will help you get up to speed.

And last, do we have any watch collectors or horological appreciators? I’ve always been a fan of timepieces but only recently have been dipping my toes. Particularly interested if we have any Seiko or microbrand afficionados (or other watches) in the Operating Partner community? Reach out. Maybe we can create a small group.

Thank you for reading the Operating Partner. If someone sent this to you and you’d like to subscribe for free, you can do so here.

Darren

The Evolution of Brand Marketing: From TV to AI Agents (2024 Update)

The original post which inspired this update piece is located here. I wrote it in 2018 and I’ve been waiting to update it… well, I finally did and here we go. This has been inspired by a series of conversations with friends, colleagues, and founders that I’ve spent some time with over the last year.

P&G and Unilever powered the early days of television. With their ad spend (and sponsored content), media companies underwrote and helped produce shows for mass audiences. Both pricing and measurement were straightforward in those early days. Because TV and radio spots were finite, prices for them rose as TV viewership grew. Meanwhile, measurement could be reduced to two factors: frequency (the number of people who tuned in) and reach (the number of times you reached each person).

The story traces how advertising evolved from this TV era to the internet age that enabled targeted advertising. When GoTo/Overture emerged in the late '90s, it initially concentrated power in traditional Madison Avenue agencies. But as these agencies started writing big checks to ad platforms, VCs got excited and poured money into ad/martech companies. This created a ripple effect where these tech providers had to expand beyond agencies to sell directly to brands, democratizing access to advertising tools.

This democratization, combined with the rise of accessible e-commerce platforms and easier product sourcing, led to the DTC (Direct-to-Consumer) evolution. However, as these algorithmically-driven companies hit growth ceilings, it became clear that business success requires more than just data science. The winners became those who could balance algorithmic optimization with creativity, focus on complete customer experience rather than just digital metrics, and build modern infrastructure to leverage data in novel ways – all while maintaining the human, emotional element that drives lasting customer connections.

The AI Revolution: 2025-2035

The next evolution of this story isn't just about brands reaching consumers – it's about AI assistants negotiating and coordinating with each other on behalf of both sides. Just as the internet democratized advertising and DTC commerce, AI is democratizing decision-making and coordination. Imagine a family's AI assistant (a "household agent") that doesn't just manage calendars and shopping lists, but actively negotiates with other AI systems to optimize the family's daily life.

By 2035, we'll likely see household agents that understand family preferences, dietary restrictions, budget constraints, and scheduling needs at a deep level. These agents will interact with restaurant AI systems to not just place orders, but negotiate delivery times based on family schedules, customize meals based on real-time nutritional needs, and even coordinate group dining experiences with other families' agents. Supply-side AI systems, meanwhile, will optimize inventory, pricing, and service delivery across thousands of simultaneous agent-to-agent interactions.

Preparing Your Brand for 2035

The path forward requires brands to develop "dual-layer storytelling" - narratives that resonate deeply with humans while simultaneously building machine-comprehensible brand attributes that AI agents can parse and evaluate. The traditional emotional storytelling isn't going away, but it needs to be augmented with structured, semantic layers that AI assistants can understand and act upon. Think of it like a song that's both beautiful music to human ears and carries machine-readable metadata about its composition, mood, and cultural context.

Here's what brands should focus on now to prepare:

First, start building rich, structured data about your brand values, product attributes, and customer commitments. This isn't just about product specifications – it's about codifying your brand promises, sustainability practices, ethical commitments, and customer service standards in ways that future AI agents can verify and validate. If your brand stands for "family-first convenience" or "sustainable luxury," you need to break down what that means in measurable, verifiable attributes that AI systems can evaluate and match against household preferences.

The most successful brands of 2035 will be those that master "attribute-rich storytelling." This means every brand story, every campaign, every customer interaction needs to carry both emotional resonance and machine-readable significance. Your Super Bowl ad shouldn't just make people laugh or cry – it should contribute to a structured narrative that AI agents can parse and factor into their decision-making. Think of it as SEO evolved into "AEO" (AI Engine Optimization) – but instead of optimizing for search algorithms, you're optimizing for household agents that deeply understand their families' values, preferences, and needs.

The brands that start building these foundations now – rich, verifiable brand attributes combined with compelling human narratives – will have a massive advantage when agent-mediated commerce becomes the norm. The future of brand marketing isn't just about reaching consumers anymore; it's about creating meaningful connections that resonate with both human emotions and artificial intelligence.

Below are a few articles I came across this past week that I found interesting. While I may not agree with everything in each one, I think they're worth a read. If you stumble upon an article you think I or the Operating Partner community would enjoy, feel free to share it with me. Of course, I reserve the right to decide what gets featured in the OP.

Thank you for subscribing to the OP. If you received this email from a friend or colleague and would like to subscribe, you can do so here.

What did you think of today's OP letter?

Login or Subscribe to participate in polls.