This Is the Pitch Deck Kontext Used to Raise $10M to Power Real-Time Ads in AI Chatbots

Kontext, a startup that helps manufacturers run real-time advertisements on AI interfaces, has raised $10 million in seed funding to scale its contextual advert platform.The 13-person firm, based in 2023, plans to make use of the capital to develop its engineering group and increase into image-based advertisements, founder Andrej Kiska instructed ADWEEK.Kontext works with manufacturers like Amazon, Uber, and Canva to put advertisements inside AI chatbots—together with Media Search, DeepAI, Pixel Chat, and Spicy Chat. The advertisements seem as branded hyperlinks simply beneath chatbot responses. As an alternative of static banners, every advert is generated in actual time by the identical massive language mannequin powering the dialog. The advertisements are designed to learn as pure extensions of the dialog, drawing from the particular person’s question to create bespoke copy in actual time, Kiska stated. “Promoting is transferring to a spot the place you aren’t going to have massive advertising companies constructing creatives, getting them authorized, and exhibiting the identical advertisements for 1,000,000 customers,” Kiska instructed ADWEEK. “It’s going to be the inverse of that the place each advert is created for each consumer in that exact consumer session, tailor-made to be extremely contextual and related with out requiring any approvals.”The $10 million funding spherical was led by M13, with participation from Torch Capital and Parable VC.In keeping with a pitch deck shared completely with ADWEEK, Kontext claims its advert product helped a serious generative AI app enhance common income per consumer from $0.24 to $0.40—a 66% raise—by including ad-supported monetization.The corporate additionally ran a pilot with informal sport developer Nimblebit, utilizing its text-only advertisements to advertise the cellular sport Tiny Tower. The marketing campaign drove a 1.58% click-through charge and a cost-per-install beneath $2, which outperformed a concurrent Meta marketing campaign by 24%. Kontext reported a $2.50 CPM, in comparison with Meta’s $7.35. The deck doesn’t specify the place the advertisements have been positioned.As AI chatbots and search engines like google more and more turn into the default interface for info, Kiska argues conventional advert codecs like banners received’t translate. “No person needs to see an unsightly, irrelevant banner caught in the midst of a chat,” he stated.Kontext isn’t the one firm making an attempt to monetize AI surfaces—opponents like ProRata and Perplexity are additionally pitching advert merchandise for its AI search interfaces.Adverts to offset inference costKontext’s core pitch is that advertisements may also help subsidize the price of working AI chatbots—significantly for the overwhelming majority of customers who work together with chatbots at no cost. To assist cowl that elevated value, the corporate affords publishers a monetization layer. Kontext takes a 30% reduce of the advert income it generates. It buildings its offers round completely different efficiency fashions like CPM, CPC, or ROAS.Take a look at the pitch deck under.