testTag: agentic AI

The agentic media buying hype cycle: observations from the field

In the context of Gartner’s technology hype cycle, agentic media buying is approaching the “peak of inflated expectations” stage.  At least that is the view of this adtech CEO and former equity analyst.

In an August report, Gartner predicted that over 80% of U.S. ad spend will transact with material AI influence by 2028.

“Advertisers and agencies are increasingly buying and managing media through advertising platform interfaces and APIs. Over time, AI will become more deeply embedded in decisions involving ad delivery, audience selection and pricing.”

Dstillery released its DS-1 agentic AI advertising platform in late 2025.  It provides end-to-end media buying workflow acceleration across the campaign lifecycle. From planning and custom audience modeling to activation and in-flight optimization, DS-1 keeps human experts in control of every decision while agents handle the manual work.

It essentially enables the convergence of digital media campaign management and decisioning that Gartner envisions.

Observations from the field

In the twelve months that DS-1 has been in-market, Dstillers from nearly every part of the company have been demoing it relentlessly.  We have been in countless meetings with adtech partners, media agencies and brands.

That experience has provided rich and current insight into the state of agentic technology in the digital media buying ecosystem.

Reception to DS-1 has been strong.  We have three dozen partners using DS-1 — directly through our UI, through Slack and Teams extensions, and through MCP server integrations. And our pipeline is growing fast.  We have some heavy users reporting significant workflow improvements, including cutting the campaign setup process from days to hours, frictionless audience discovery, modeling & iteration, and easy campaign optimization.

Moreover, virtually 100% of all media buying agencies and adtech platforms that we work with are in the building phase with agentic AI.  All of our partners, whether connected to DS-1 yet or not, are deeply engaged in developing their agentic strategies, capabilities and tech stacks.

As of now though, very few of them are actually employing agentic AI at scale in their digital media buying operations, and the technology is at an emergent stage.

Media buying is complex, and to do it well at scale requires a carefully tuned, controlled and efficient process.  The largest media agencies employ thousands of people and manage billions in client ad spend.  They face relentless pressure from brands to deliver performance and value.  At the same time, many brands are risk averse. They do not permit their agencies to rush headlong into new technologies with their budgets without significant due diligence.

The result of all of that is that the actual use of agentic AI in media buying is significantly lagging the hype.

Mapping the hype cycle

This brings us back to the Gartner technology hype cycle for agentic media buying.

In Dstillery’s view, and with the mosaic of data and anecdotes that we have gathered, we are at the stage of rising expectations, based on the following conditions:

  • Very few adtech companies have scalable, production-ready solutions in-market.  Most are still carefully curated demos between parties that “could” work, but they are not yet implemented in day-to-day workflows.
  • Most buyers are still at the investigation and preparation phase, with few actually ready to scale AI in their media-buying operations.
  • The industry trade press is definitely at the stage of amplifying the hype around how media buying will be transformed.

We have attempted to pinpoint where on the curve those conditions would place us, which is approaching the peak of expectations.

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We are definitely seeing media hype, but not yet seeing market-ready supplier proliferation.

If this is right, and the technology follows the classic hype cycle pattern, the next stage we will see is a proliferation of suppliers, followed by a peak in expectations.  Expect to read many more articles about how AI will fundamentally transform and revolutionize digital media buying.

However, adoption will continue to progress slowly.  That disconnect will lead to disappointment, and we will slide into the trough of disillusionment.  People who were previously bullish will become bearish.  They will start to doubt whether the potential is as compelling as they believed at the peak of inflated expectations.

Sentiment will collapse, and expectations will overshoot reality again, this time to the downside.  Meanwhile, adoption will start to broaden. Eventually, expectations and adoption will converge.

I will not speculate on how long that all takes to unfold, other than to say that AI lends itself to fast cycles, and structural media buying inertia lends itself to slower cycles.

There is no doubt that today, expectations are high and rising.  We see it every day in our conversations with clients and partners, and in the trade press.  There is also no doubt that actual adoption is low.

In my view, though, the adoption of agentic AI to enhance digital media buying workflows is inevitable.  The economic incentives to do so are undeniable.  The potential gains in advertising effectiveness and efficiency will prove irresistible to brands and their agencies.

More AI adoption will also fundamentally reshape the adtech industry.

As more advertisers, agencies and adtech platforms bring AI into their digital media buying processes in search of efficiency and performance, the adtech supply chain will become more transparent and accountable.  It will become much easier to understand — objectively and confidently — which ecosystem partners are providing differentiated value, which are commodified, and which are just exploiting industry inefficiencies and opacity to keep the lights on.

The Gartner hype cycle model suggests that we are in for a wild ride, with highs and lows on the immediate horizon.  It also tells us we are still quite a ways away from the level of adoption necessary to transform media buying.  But that is the destination of the road we are on, and there is no turning back.

The path forward

At Dstillery, our mindset is to ignore the hype cycle.  The gains we are seeing for clients already are real, and our focus is on the fundamentals.  What capabilities does AI unlock for our brand and media agency customers, and our activation partners?  How can those new capabilities unlock more value from our highly performant predictive audience targeting technology?

Recognize the hype cycle for what it is:  a roller coaster of human emotions.  Do not get swept up in it.

True value creation will come from the tangible use cases that deliver performance, efficiency and effectiveness for media buyers.  That is where we are focused, and that is where the real transformation of media buying will happen.

Rebuilding loyalty in the age of agentic AI

Editor’s Note: This blog is inspired by Dstillery Board Director Julie Lyles’ presentation at the Food Industry Summit, 4/17/26, St. Joseph’s University.

For decades, loyalty has been won at the moment of choice, from the shelf to the feed to checkout. Today, that paradigm is breaking down.

A new model called agentic commerce is emerging, where AI systems increasingly act on behalf of consumers, researching, evaluating, and completing purchases. Gartner reports that a growing share of digital commerce interactions will soon be influenced or executed by AI agents. At the same time, research from McKinsey & Company finds that over 70% of consumers already expect brands to anticipate their needs, accelerating the shift toward automated decision-making.

This fundamentally changes the role of marketing.

Dstillery POV:
The most important decisions are no longer happening in the moment; they are being modeled in advance. Brands are no longer just competing to be chosen by consumers; rather, they are competing to be pre-selected by the systems that decide. 

The Collapse of the Decision Moment

Historically, marketing strategy has focused on influencing behavior within the consumer journey. This has largely been done through promotions, channel retargeting, and checkout conversion optimization. 

It is essential to note that this model assumes a human actively navigating options. Agentic AI removes that assumption, is apt to learn from behavioral signals, evaluate options, and execute purchases autonomously. Research from Deloitte projects that customers will increasingly hand over not just recommendations, but also purchasing authority to autonomous agents, prompting brands to consider how they earn influence and embed into automated workflows. 

Dstillery POV:
The “moment of decision” is no longer a moment; it’s a model. What used to be a discrete interaction is now the output of continuous prediction. The implication is that brands that rely on actively intercepting consumer decisions will lose ground to those shaping the model upstream. 

From Influence to Prediction

We are moving beyond influence into something more powerful: predictive preference modeling. Traditional commerce has historically focused on influencing decisions, optimizing conversions, and reacting to consumer behavior. In the age of agentic commerce, AI systems can effectively predict consumer decisions, optimize the likelihood of selection, and model behavior before it occurs. 

Dstillery POV:
The next stage in the evolution of marketing is prediction, not persuasion.

At Dstillery, this is the foundation of how modern audience targeting should work. AI is not just identifying who a consumer is: it is identifying and predicting who they are likely to become in a given context. This distinction matters.

In an agentic marketplace, the brand that wins is not the one that always reacts the quickest. Instead, it’s the one already aligned with the anticipated outcome. 

The Commoditization Trap

As AI intermediates transactions, traditional levers of differentiation erode. Price, convenience, and availability become instantly comparable, continuously optimized, and algorithmically interchangeable. 

According to NielsenIQ, in categories like grocery, purchasing is largely driven by habitual, repetitive behaviors, with returning buyers accounting for a significant share of brand revenue. When those habits are handed to AI, the system defaults to efficiency unless directed otherwise.

Dstillery POV:
If your brand is only winning on efficiency, you are training the system to replace you. Without strong preference signals, brands become indiscernible and substitutable. 

What AI Can’t Optimize (Yet)

AI excels at optimizing functional outcomes, such as finding the lowest price, the fastest delivery, and the highest-rated option. However, loyalty is not built purely on functionality.

Research from Accenture indicates 63% of consumers show increased loyalty to brands that align with their values.

Dstillery POV:
The most valuable signals are the hardest to quantify and the hardest to displace. These signals include emotional connection, brand trust, cultural relevance, and perceived identity fit. Preferential signals don’t disappear to agentic systems; instead, they become inputs. The question is whether your brand is generating them strongly enough to be recognized.

The New Loyalty Equation

In an agentic world, loyalty is no longer built at the point of purchase. It is built before the system begins evaluating options. 

Dstillery POV: The Pre-Decision Advantage

The brands that win will: 

  • Model intent early, moving upstream from conversion to intent formation
  • Create durable signals that AI systems can learn from, such as behavioral patterns and contextual relevance
  • Reinforce preference continuously, ensuring signals are not episodic, but instead, persistent
  • Align with machine logic, structuring brand signals in ways legible to AI systems

The Role of AI-Powered Advertising

In an agentic landscape, fragmented signals create blind spots, causing identity-based approaches to struggle as signal loss increases. What’s needed is a system that can operate without dependency on identifiers, while still modeling high-intent behavior. This is where our approach at Dstillery becomes critical.

Dstillery POV:
Identity is not required to understand intent: prediction is. 

Dstillery’s AI-driven approach synthesizes behavioral and contextual signals across environments to identify patterns of emerging intent and build custom AI audiences based on likelihood to act. This enables brands to engage consumers earlier in the decision cycle, influence both human- and AI-mediated outcomes, and shape preferences before they are formalized into action. 

From Targeting to Training

As AI reshapes advertising, the role of targeting is evolving. Finding demand is no longer enough – brands must also train the systems that ultimately determine who wins it.

Dstillery POV:
Impressions now serve a dual purpose: driving immediate conversion while simultaneously informing future decision systems. This shift reframes campaigns as both performance engines and signal generators. In turn, media evolves from a distribution channel into a persistent data ecosystem—one where every outcome contributes to cumulative impact.

Brands that understand this will think beyond short-term ROI, invest in long-term signal strength, and build compounding advantage gradually. 

An Opportunity to Lead

What feels experimental today will quickly become standard. The shift into the agentic commerce era creates a clear divide between brands that optimize for today’s decisions and brands that shape the decisions of tomorrow. According to Deloitte, over half of leading retailers believe AI agents will handle most customer interactions within five years. McKinsey reports that agentic AI commerce will likely generate up to one trillion dollars in the United States alone by 2030, with global projections as high as five trillion. Ultimately, agentic AI isn’t the add-on in commerce: it’s the infrastructure. 

Dstillery POV:
The brands that win in an agentic world won’t just participate in the ecosystem; they will influence how it thinks.

Preference Is the New Currency

Loyalty has always been rooted in economics. In an era where convenience is assumed, comparison is automated, and decisions are delegated, preference becomes the most valuable currency of all.

Dstillery POV:
If you are not shaping preference, you are competing on leftovers. The question isn’t if your brand wins at the moment of choice; it’s whether it has already been chosen before that moment arrives.