Observed Signal · Mar 30, 2026 · Industry Trend · Source: Digiday · Impact: 3/5 · Sentiment: Positive
AI Spurs Growth in Experimental Ad Budgets
Marketers and agencies are reallocating and expanding test-and-learn ad budgets as AI-driven channels and products emerge. Agencies report clients shifting dollars away from saturated performance channels like Meta and Google into experimental or upper-funnel channels such as CTV, YouTube, linear TV, direct mail, out-of-home and retail media. Performance agency Markacy says its traditional 80/20 core-versus-experiment split may rise toward ~75/25. Pawco now allocates roughly 15–20% of its marketing budget to experimentation and increased spend by 10% in Q1 to pursue AI/AEO tactics. The trend is driven by AI’s impact on consumer behavior and new ad opportunities (including OpenAI piloting ads in ChatGPT), economic uncertainty, and eroding reach on legacy performance channels. Agencies including Ogilvy report many clients are exploring AI-driven opportunities either via dedicated experimental budgets or by flexing existing plans.
AI-driven ad formats and platform ad pilots are prompting brands and agencies to reallocate and grow experimental budgets, shifting media mix away from major performance channels — a meaningful medium-term impact on ad buying strategies and media channels.
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Key Takeaways & Evidence Grounding
- Markacy historically followed an 80% core / 20% experiment media split; co-founder and co-CEO Christopher Jones said expansion could approach roughly 25% for experimentation.
- Pawco reports experimental ad spend now accounts for about 15–20% of its marketing budget and saw a 10% budget increase in Q1 to account for new AI/AEO tactics.
- Clients are shifting spend away from Meta and Google into channels such as CTV, YouTube, linear TV, direct mail, out-of-home (OOH) and retail media networks.
- OpenAI is piloting ads within ChatGPT and brands like The Knot are using test-and-learn dollars to fund ad pilots with the platform.
- Ogilvy North America says some clients explore AI-driven opportunities by reallocating existing budgets rather than adding separate experimental line items.
Connected Companies & Entities
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