DTC985 - AI Impact Paid Media, CRO Outperforms Ads, and ChatGPT Traffic

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Good morning,

Here’s what you’ll find in today’s DTC:

• 🤖 How AI Is Transforming The Paid Media Landscape  
• 🚀 Why CRO Outperforms Ads At Scale
• 📈 5 Tips For Increasing Brand Mentions on ChatGPT

You’re reading this newsletter along with new subscribers from: Bloc Blinds, My Muscle Chef, and Portabella. 👋

‍💰 AI Is Reshaping Paid Media (But Only If You Know How to Use It)

Paid media is entering its next evolution.

Not because platforms are adding more ad formats, but because AI is fundamentally changing how campaigns are built, optimized, and scaled.

Pilothouse sees this shift every day inside Meta, Google, TikTok, and Amazon accounts, where AI-driven systems can now control everything from bidding to creative rotation.

The upside is massive: better efficiency, faster learning, and stronger performance at scale.

But the brands winning with AI aren’t “turning it on and walking away.”

They’re pairing automation with experienced human oversight to guide, audit, and refine what the machines are doing.

When used correctly, AI can dramatically improve return on ad spend.

The Top 5 Benefits of Leveraging AI in Paid Media

1️⃣ Efficiency Gains

AI dramatically reduces manual tasks, so less time is spent on building campaigns, and teams have more time to strategize and analyze performance.

• Platforms can automatically adjust placements, budgets, and creative combinations to optimize toward defined goals.
• Campaign structures, targeting, and optimization are increasingly automated through Performance Max, Advantage+, and Smart+.

2️⃣ Smarter Budget & Bid Optimization

AI excels at real-time decision-making and reduces wasted spend.

• Smart bidding systems react instantly to audience behavior, competition, and performance signals.
• Google Smart Bidding, Meta Advantage+, and TikTok Smart+ continuously optimize toward ROAS or conversions.

3️⃣ Faster, Scalable Creative Testing

Creative testing is no longer limited by human bandwidth. Brands can test more ideas, learn faster, and extend the life of winning creative.

• AI analyzes creative performance in real time and dynamically optimizes delivery, reducing fatigue.
• Meta’s dynamic creative, TikTok’s AI video tools, and Amazon’s image generation help scale output.

4️⃣ Improved Audience Targeting & Personalization

AI processes massive datasets to identify high-intent users more effectively than manual targeting ever could.

• Behavioral, contextual, and performance signals are combined to find likely converters.
• Ads are delivered in more relevant contexts with messaging better matched to user intent. The result? Higher engagement and conversion rates.

5️⃣ Real-Time Optimization & Continuous Learning

AI doesn’t stop optimizing once a campaign launches.

• Performance data is analyzed continuously to adjust delivery, creative mix, and audience focus.
• Budget is shifted automatically from underperforming ads to top performers to improve ROAS and lower CPA.
• Learning compounds over time, accelerating scaling once winners emerge.

The takeaway?

AI optimizes. Humans decide what “good” actually means.

Used thoughtfully, AI unlocks efficiencies and performance that simply weren’t possible before.

Look out for Part 2 next week! We’ll break down the disadvantages of AI in paid media.

Where automation falls short, the risks brands need to watch for, and why human oversight still matters more than ever.

‍🎧 Inside DEWALT’s Post Click Ecosystem

Most brands think ads drive revenue.

This look into DEWALT’s post-click ecosystem proves everything after the click does.

This episode is a teardown of how DEWALT’s homepage, category pages, PDPs, and emails work together to turn expensive traffic into low-cost revenue.

Jordan also calls out where even a brand this polished still leaves money on the table. Missed cross-sells. Content blocking purchases. High-intent moments that should be doing more work.

If you’re buying more traffic but not seeing more profit, this will make the problem very clear.

▶️ Watch the full episode on YouTube.

🎧 Or listen here on Spotify.

Nick Shackleford shares how BRĒZ is getting more traffic from ChatGPT by following these five tips.

He goes step by step on how BRĒZ increased visibility by doing an audit of how AI described his brand, and how to make changes on his site to show up more often in AI answers.

‍🛠️ Instagram Rolls Out Your Algorithm Controls

CEO Head Adam Mosseri shares Your Algo has expanded to all English speakers globally.

This gives users more control over what they see on their Reels tab by “adding or removing topics based on your interests.”

Learn more here.

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DTC Newsletter is written by Rebecca Knight and Frances Du. Edited by Eric Dyck.

Please note that items in this newsletter marked with * contain sponsored content.