Brand-building strategies are changing as AI tools spread

AI is reshaping how consumers discover and evaluate brands, but consumers spend little time with AI tools. That gap is where retailers win or lose.

"Consumers are really only spending about 5% of their digital time using AI," said Melissa Hutter senior director of global market research and insights at The Trade Desk, during EMARKETER's Future of Digital summit. "The vast majority is still spent with CTV, with audio. They're not watching Netflix to engage with ChatGPT."

Even AI enthusiasts, the early adopters, dedicate about 10% of their digital time to AI tools. The finding comes from Triton Digital's latest research on how AI is impacting consumer behavior and what it means for brand strategy, based on quantitative and qualitative studies across the US and UK.

The consumer journey is now a web

The traditional marketing funnel has evolved beyond the loop model discussed in recent years. Today's purchase journey resembles a web, with consumers moving in and out of AI tools while verifying information through trusted sources.

"People are backing in and out of using the LLMs, like ChatGPT, and then verifying that information," said Hutter. This behavior is particularly pronounced for high-stakes decisions involving financial choices, health matters, or significant investments.

For example, a consumer planning a trip to Japan might use ChatGPT to build an itinerary, but they won't simply accept that output and book immediately. Instead, they'll verify the information through favorite travel blogs and other trusted sources, using AI to summarize information faster while still curating their final decisions through traditional channels.

AI serves as an efficiency tool in the research phase, but it hasn't replaced the need for trusted media sources. Brands must maintain strong presence across both AI platforms and premium media channels where consumers verify information.

Premium media matters more than ever

Open web traffic has declined 30% over the past three years for many news publishers and media outlets, but that loss is low-quality traffic, not engaged audiences.

"That's the low quality traffic that's declining, people that are only going to find a website because they started in a traditional search method and clicked onto it," said Hutter. Premium media brands are holding or growing their traffic because consumers seek them out.

Premium media consists of two components: the brand itself (everything consumers think about before engaging) and the environment (the experience once they arrive, including ad load and site performance). When brands create truly premium environments, audiences will seek out their websites and apps without discovering them through search.

Premium channels build trust, emotional connection, and quality, elements that AI tools cannot replicate. Build premium experiences that drive direct traffic instead of relying solely on search discovery.

Brand-building feeds AI recommendations

Brand awareness and reputation drive 53% of what surfaces in large language models, not short-term performance metrics, according to recent analysis.

"If you do the heavy lifting over the months and years making sure that your brand stands for what you want it to stand for, people are gonna be talking about that," said Hutter. "The media's gonna pick up on that, and that's gonna ultimately then feed into the signals that AI engines are pulling into."

For low-stakes decisions, consumers are more likely to trust AI recommendations, making mental shortcuts and brand recognition critical. For high-stakes decisions, customer entry points become key, brands must understand what consumers are searching for within AI tools and ensure their messaging aligns with those needs.

Volvo's decades-long association with safety means the brand likely surfaces when consumers ask ChatGPT to recommend safe family vehicles, Hutter said, citing automotive safety as an example.

Brand-building and AI optimization are interconnected. Strong brand positioning over time creates the signals that AI tools use to make recommendations.

Audio emerges as an underutilized channel

Audio is the most effective underused channel available to advertisers right now.

"Audio is probably the one premium channel right now because it performs so well, but not as many advertisers that should be are leaning into that channel," said Hutter. Audio, including podcasts and music streaming, connects with consumers in a way no other channel replicates, even when audiences are multitasking.

An omnichannel approach remains essential, with each channel bringing unique benefits: CTV provides sight, sound, and motion for emotional connection; audio creates an intimate, whisper-in-your-ear experience; and display serves as both a priming and reminder channel.

Reassess audio investment now: AI will turn traditionally static channels into dynamic, responsive media through future personalization capabilities.

"Don't confuse efficiency with influence," said Hutter. While AI tools offer efficiency in the consumer journey, building trust and brand recognition requires the emotional connection that only premium media can provide.

Watch the full session. 

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