The main “problem” with contextualized advertising is that the people producing the content get a larger share of the ad spend.

Targeted ads concentrate control over the market into a few players, which can do things like acquire competitors or run them out of business with loss leaders.

With AI, the supply of ad real estate will go to infinity, so the only thing that will matter is the quality of the places the ads run.

This would be a good time to ban targeted advertising, or for the content producers to form a cartel that only purchases contextual ads.

That cartel will probably be even worse than what we have now, since it’s going to be 2-3 mega conglomerates like Disney, and they already have handed editorial control over to the White House.

Hopefully the invisible hand of capitalism will somehow fix this.