Ad Tech

3 posts

spotify3 min readCurated summary

Our Multi-Agent Architecture for Smarter Advertising | Spotify Engineering

The post argues that fragmented advertising workflows, not backend infrastructure, are the core problem. Although buying channels share services and data, their planning and optimization logic is repeatedly reimplemented across channels and surfaces, causing drift and technical debt. The proposed solution is a shared agentic decision layer that interprets advertiser goals, orchestrates existing Ads APIs, and applies consistent reasoning across products. ## Fragmented Workflows Across a Shared Backend - Direct, Self-Serve, and Programmatic buying use largely consolidated infrastructure but retain different workflows and decision logic. - Spotify Ads Manager, Salesforce, Slack, and internal tools contain overlapping automation. - Budget allocation, inventory selection, reach, efficiency, and STR decisions are repeatedly implemented in different places. - Incremental workflow changes therefore create duplicated maintenance work and inconsistent behavior. ## Why Conventional Workflow Services Fall Short - Hard-coded state machines and REST services are poorly suited to combinatorial planning tasks. - Campaign planning depends on: - User and advertiser characteristics - Available inventory and audiences - Business priorities - Forecasts, performance, and optimization goals - A workflow optimized for one channel or “happy path” will not adapt well as requirements change. - Improvements to decision logic must be replicated across every product surface, increasing the risk of divergence. ## The Missing Intent Layer - Existing systems can perform individual actions such as creating line items, running forecasts, and retrieving insights. - They do not consistently translate high-level objectives into: - A sequence of tool calls - Explicit tradeoffs - Validation and safety checks - An objective such as maximizing reach in Brazil while protecting video inventory and meeting STR requires coordinated reasoning across multiple capabilities. ## A Modular Agentic Architecture - Campaign planning and management are modeled as cooperating specialized agents. - Agents use shared signals, including: - Inventory - Audiences - STR - Quality and risk - Historical performance - They jointly optimize advertiser goals and Spotify’s business constraints. - Existing Ads services become tools that agents orchestrate, rather than capabilities being rebuilt in each workflow. - A long-running orchestration layer delegates tasks while agents share context and evaluation logic. - The same decision engine can support every buying channel and surface. ## Engineering Implications - APIs need to be designed as agent tools, rather than only as CRUD interfaces. - Testing must include behavioral evaluation in addition to unit and integration tests. - Observability should explain what an agent decided and why, not merely track latency and errors. - Safety requires guardrails for semi-autonomous decisions, beyond ordinary input validation. - The approach avoids both duplicated deterministic workflows and a brittle, centralized rules engine for probabilistic, ML-heavy advertising logic. The overall recommendation is to centralize campaign decision-making in a reusable agentic platform while keeping existing services as specialized tools. This should reduce duplicated workflow logic, make improvements consistent across products, and allow advertising workflows to evolve without repeatedly rebuilding them.

Read original(opens in new tab)
tossOriginal article

Creating the worst experience at Toss (opens in new tab)

Toss designer Lee Hyeon-jeong argues that business goals and user experience are not mutually exclusive, even when integrating controversial elements like advertising. By identifying the intersection between monetization and usability, her team transformed intrusive ads into value-driven features that maintain user trust while driving significant revenue. The ultimate conclusion is that transparency and appropriate rewards can mitigate negative feedback and even increase user engagement. ### Reducing Friction through Predictability and Placement * Addressed "surprise" ads by introducing clear labeling, such as "Watch Ad" buttons or specifying ad durations (e.g., "30-second ad"), which reduced negative sentiment without decreasing revenue. * Discovered that when users are given a choice and clear expectations, their anxiety decreases and their willingness to engage with the content increases. * Eliminated "flow-breaking" ads that mimicked functional UI elements, such as banners placed inside transaction histories that users frequently mistook for personal bank records. * Established a design principle to place advertisements only in areas that do not interfere with information discovery or core user navigation tasks. ### Transforming Advertisements into User Benefits * Developed a dedicated B2B ad platform to scale the variety of available advertisements, ensuring that users receive ads relevant to their specific life stages, such as car insurance or new credit cards. * Shifted the internal perception of ads from "noise" to "benefits" by focusing on the right timing and high-quality matching between the advertiser and the user's needs. * Institutionalized regular "creative ideation sessions" to explore interactive formats, including advertisements that respond to phone movement (gyroscope), quizzes, and mini-games. * Leveraged long-term internal experiments to ensure that even if an idea cannot be implemented immediately, it remains in the team's "creative bank" for future product opportunities. ### Optimizing Value Exchange through Rewards * Conducted over a year of A/B testing on reward thresholds, comparing small cash amounts (1 KRW to 200 KRW), non-monetary items (gifticons), and high-stakes lottery-style prizes. * Analyzed the "labor intensity" of ads by adjusting lengths (10 to 30 seconds) to find the psychological tipping point where users felt the reward was worth their time. * Implemented a high-value lottery system within the Toss Pedometer service, which successfully transitioned a loss-making feature into a profitable revenue stream. * Maintained user activity and satisfaction levels despite the increased presence of ads by ensuring the "worst-case experience"—viewing ads for no gain—was entirely avoided. Product teams should stop viewing business requirements and UX as a zero-sum game. By focusing on user psychology—specifically transparency, non-disruption, and fair value exchange—it is possible to achieve aggressive business targets while maintaining a sustainable and trusted user environment.

discordOriginal article

Discord Announces First Mobile Ad Format, Broadening Advertising Opportunities (opens in new tab)

Discord is set to expand its rewarded advertising ecosystem to mobile devices with the pilot launch of Video Quests on Mobile in June 2025. This strategic evolution aims to connect advertisers with Discord’s 200 million monthly active users across platforms, leveraging a full-screen, opt-in format designed specifically for brand awareness. By transitioning these advertising tools to mobile, Discord provides a performance-driven channel for partners to engage a highly active community through high-quality video content and incentivized rewards. ### Mobile Integration and the 2025 Pilot * The initial pilot program for Video Quests on Mobile is scheduled to begin in June 2025. * The format utilizes a full-screen, premium user interface tailored for mobile consumption while maintaining Discord’s commitment to opt-in, non-intrusive advertising. * This expansion marks Discord’s first mobile-specific ad offering, targeting a cross-platform audience that spans PC, mobile, and native console integrations. ### Evolution of the Quests Framework * Discord currently offers two primary rewarded formats: Video Quests for awareness (trailers and announcements) and Play Quests for engagement (requiring users to play or stream a game). * The platform has shifted from a gaming-exclusive focus to a broader Media and Entertainment strategy, catering to diverse brand partners including streaming services and movie studios. * Play Quests generate authentic connections by rewarding players with exclusive in-game items for meeting specific gameplay or streaming milestones. ### Proven Campaign Performance and Metrics * **miHoYo (Genshin Impact):** Utilizing high-value in-game rewards through Play Quests, the developer saw an 80% increase in playtime during the campaign week. * **Max (Dune: Prophecy):** The first-ever Video Quest featured a long-form trailer (2:38) that achieved a significantly high completion rate of 85%. * **Nexon Games (The First Descendant):** A Video Quest campaign generated over 1 million completions, with 10% of that engagement occurring organically through peer-to-peer sharing. ### Strategic Outlook for Advertisers Brands and developers looking to capitalize on this expansion should consider participating in the June pilot to secure early access to the mobile player community. This format is particularly recommended for titles launching new updates, downloadable content (DLC), or major media premieres where high-impact video awareness is a primary objective.