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Maintaining Transparency in LLM Advertising

Mike Choi
3 min read

How we are ensuring Koah ads are both effective and transparent

Our mission at Koah is to accelerate the prevalence of LLM applications and we believe the best way to do this is by making it as easy as possible for developers to monetize their applications. We think advertising is the best approach towards monetization as it is able to provide a steady and scalable revenue stream.

Koah ads are unique and the first of their kind. Rather than using traditional banner ads, Koah ads are integrated directly into LLM outputs. While this new ad format has proven extremely effective, we wanted to ensure that we were also upholding consumer expectations and trust. So in this post, we wanted to go over some of the decisions we made to ensure maximum transparency.

Using clear "Sponsored" or "Ad" labels that stand out.

The first step towards transparency is clearly informing users when they are seeing a paid ad. We use three distinct methods to ensure Koah ads are visually distinguishable from the content they're embedded in.

The first method is using a subscript labeled either "Sponsored" or "Ad." The label varies based on the ad format, as shown in the examples below.

Inline ads are labeled with "Ad"
Inline ads are labeled with "Ad"

The second method creates a visual separation between organic responses and ads through design elements like colors, padding, and alignment. By default, Koah ads feature a heavier font weight, a distinct accent color that differs from the body text, and an underline.

Follow up questions labeled with "Sponsored"
Follow up questions labeled with "Sponsored"

While we have strong opinions about how embedded LLM ads should look, we recognize the need for balance in applying these design methods. Too subtle, and users might miss that they're seeing an ad. Too prominent, and the ads become disruptive to the user experience. That's why we give app developers the flexibility to customize how their ads appear.

Keep the AI's main job (helping users) as the priority

Even the most clearly marked ad will feel disruptive if it's irrelevant to the conversation. That's why we invest heavily in technology to ensure our ads match the context of each interaction. When done well, presenting relevant ads accomplishes two key things

  1. Maintains the flow of the conversation
  2. Increases the performance of the ad

Ultimately, we believe that well-targeted ads relevant to both context and user needs should enhance rather than diminish the user experience.

To wrap up..

We're in uncharted territory here. LLM-embedded ads are a novel concept, and no one knows exactly what will work. At Koah Labs, while we focus on maximizing ad performance, we remain committed to our highest priority: maintaining our users' trust and meeting their expectations. We will continue to evolve our approach based on user feedback and industry best practices, always striving to create a balanced ecosystem where advertisers, developers, and users all benefit from transparent and effective AI-powered advertising.