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Agentic AI Media Buying Delivers Cost Savings in Initial Trials
Early tests of agentic AI in media buying by Butler/Till and Pubmatic have demonstrated significant reductions in media and supply chain costs, alongside improved operational efficiency. This emerging technology streamlines programmatic processes, offering a glimpse into a more automated future for ad spend optimisation.
What Happened
- •Independent agency Butler/Till, in collaboration with Pubmatic, conducted initial tests of agentic AI for media buying.
- •These trials focused on automating aspects of programmatic media purchasing.
- •The results indicated notable reductions in both media spend and supply chain expenses.
- •The agentic AI system also contributed to time savings in campaign management.
- •The success of these early tests has prompted further exploration and raised questions about broader implementation.
- •The technology aims to enhance efficiency by autonomously identifying and executing optimal media placements.
Why It Matters for NZ Marketers
- •NZ marketers, often operating with smaller budgets, can leverage such AI to maximise return on investment from media spend.
- •Increased efficiency in media buying frees up valuable agency and internal team resources for strategic planning and creative development.
- •This technology could level the playing field, allowing smaller NZ agencies to compete more effectively with larger entities through automation.
- •Reduced supply chain costs directly translate to more budget allocated to actual media exposure, benefiting local campaigns.
- •Early adoption could provide a competitive advantage in a market where media efficiency is paramount.
- •It signals a shift towards greater transparency and control over programmatic buying for NZ brands.
Strategic Implications
- •Marketers should begin exploring AI-driven programmatic solutions to identify potential cost efficiencies and performance gains.
- •Agencies must upskill teams in AI oversight and strategy, shifting focus from manual execution to strategic management of AI tools.
- •Evaluate existing media supply chains for areas where agentic AI could reduce waste and improve transparency.
- •Consider pilot programmes with AI-enabled platforms to understand their impact on specific campaign objectives.
- •Develop clear KPIs for AI-driven campaigns, focusing on both cost savings and performance metrics.
- •Foster partnerships with ad tech providers and agencies that are investing in and developing agentic AI capabilities.
Future Trend Signals
- •The increasing automation of programmatic media buying, moving towards self-optimising campaigns.
- •Greater emphasis on data-driven decision-making and real-time adjustments through AI agents.
- •A potential restructuring of agency roles, with a stronger focus on strategic AI management and creative output.
- •The democratisation of advanced media buying capabilities, making sophisticated optimisation accessible to more advertisers.
Sources
Editorial note: This analysis is original, AI-assisted editorial content. All source material is attributed with links. No full articles are reproduced. Short excerpts are used under fair dealing principles.
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