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China is releasing models that are not as good and are good enough, at a fraction of the cost, and getting real penetration in the United States. Neil and Eric work through what that does to pricing, then get to WD-40, which used Amazon’s generative video ads to triple daily unit volume with an 86% new-to-brand rate and a 45% higher click-through rate. Eric’s answer to every founder asking whether this kills agencies is the same question back: who is going to maintain it. He had that exact conversation with a multi-billion dollar hospitality company this week.
Key takeaways
◾Good enough at a tenth of the price is a pricing event, not a quality debate
◾AI ad production collapses cost per asset, it does not manage the account
◾Every founder building agents for each team member is telling you they are understaffed
Chapters
00:00 China’s Price Disruption
03:55 Raising the AI Bar
05:10 Marketing Needs Adaptability
08:43 Singapore’s AI Optimism
11:05 WD-40’s AI Ad Win
15:13 Why Agencies Still Matter
15:37 Agentic Web Future
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