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Issue #24: Gen AI ads roll out and Incubeta hires for growth

The fastest way for digital marketing pros to look smart in the weekly stand-up

July 10, 2025 • Estimated Reading Time: 3 minutes

☕ Hello there adtech accelerators

Sit down with a quick cortado and sip on the top stories from this week.

🗞️ Top Stories

  1. Incubeta makes six senior UK hires to accelerate growth

    The digital performance agency has added client and channel leadership as part of a wider investment in strategic services. Decision Marketing

  2. LUMA’s Q2 2025 Market Report points to resurgence of adtech deals

    Strategic buyers drove 9 of 11 adtech acquisitions as M&A rose 25% YoY, with the LUMA index jumping 22%, out-pacing the Nasdaq. LUMA Partners

  3. Linda Yaccarino to exit X after 13 month tenure
    The former NBC Universal ad chief will step down as X CEO by August, following advertiser pull-outs and product clashes with owner Elon Musk. The Guardian

  4. Microsoft says AI already saved $500m but jobs continue to be cut

    Bloomberg figures shared by Reuters show AI tools shaved half a billion dollars of costs whilst the company is simultaneously laying off c.4% of staff. Reuters

  5. Perplexity AI courts brands with “sponsored follow-up questions”

    The conversational-search start-up is pitching CPM-based ads that appear beneath answers; early buyers include Whole Foods and Indeed as the company weighs additional commerce and travel formats. Business Insider

💭 60-Second Take – Perplexity rolls out Sponsored Follow-ups

Perplexity AI is piloting ads that appear as paid follow-up questions beneath an answer, betting brands will pay CPMs for high intent slots without degrading the core product’s user experience.

  • Product first: Executives have capped ad load at one paid prompt per response and are prioritising only a handful of blue chip advertisers.

  • Native placement: Because over 40% of sessions already generate follow-up queries, a “sponsored next question” feels like a natural extension of user curiosity rather than a post-prompt banner ad.

  • Buy model limitations: A straight CPM model may under monetise moments of intent, without click or commerce-based buy types Perplexity risks leaving money on the table.

Perplexity’s slow roll-out keeps the user experience pristine while giving advertisers a unique, contextual ad slot. Expect trials of CPC or CPA mechanics and pilots in categories such as travel and finance. Long term, in a similar vein to Google and Meta, self-serve is key to scale but will only arrive once ad quality and UX conundrums are solved.

Got feedback, suggestions or interested in partnerships? Hit reply and let us know.

See you next time,

Access Adtech