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The Gap: No Ad Infrastructure for GenAI
Billions of conversations are now happening inside LLMs, across chatbots, companions, and copilots, as consumer behavior shifts away from traditional search and social feeds and toward AI interfaces.
Yet advertisers have no way to reach Gen AI users. While digital ad spend is projected to surpass $1T by 2030, virtually none of it is flowing into LLM environments today.
Advertisers want in. But:
- Existing adtech tools weren’t built for LLMs. Traditional ad targeting relies on passive signals like clicks or views. LLMs surface much richer, multi-turn conversational intent which is difficult for legacy tools to parse.
- Old ad formats don’t fit the new UX. Banners and pre-rolls feel jarring and unnatural inside GenAI experiences. GenAI needs new native ad formats that feel like part of the conversation, not an interruption.
- Major ad networks block AI-generated content. AppLovin, The Trade Desk, and others cite fraud concerns, brand safety, and lack of standardized formats as reasons to exclude AI-generated content entirely.
The same gap exists on the publisher side:
Hundreds of LLM-native apps have grown large user-bases, but most don’t monetize effectively. Inference costs are high, making free users expensive to serve. Without revenue, many GenAI apps face unsustainable unit economics. Ads are an attractive solution but building their own ad network isn’t a realistic option.
The Opportunity: A New AI Ad Network for the GenAI Stack
Kontext is building the first AI-native ad network: a platform for placing real-time, hyper-personalized ads inside GenAI interfaces. Just like LLMs generate custom responses based on each user’s context, Kontext generates ads tailored to the flow and intent from the conversation.
- For publishers: Kontext provides a turnkey way to monetize, increasing ARPU without compromising UX.
- For advertisers: Kontext unlocks a high-intent, under-monetized audience.
- For users: Ads feel more like helpful recommendations than interruptions.
Why Kontext is Uniquely Positioned
1. Monetizing Demand, Not Just Discovery
While many of the CMOs we’ve spoken with are focused on improving organic visibility inside LLMs (“GEO” or Generative Engine Optimization), what they’re even more excited about is the opportunity to reach users through ads inside AI-generated responses. Kontext is going directly after paid budgets, where the dollars flow and where true scale is possible.
2. Building for the $1T Ad Opportunity
Over the last two decades, the biggest marketing tech winners weren’t saas tools, they were ad networks that monetized through the vastly larger budgets of ad dollars. AppLovin has a $135B enterprise value today and trades at 48x EV/EBITDA, The Trade Desk has a $44B enterprise value and trades at 40x EV/EBITDA. As digital ad spend scales, their revenue scales with it. Kontext is applying this model to the next big shift: LLM-native applications.
3. Starting Where Engagement is Highest
Kontext is launching in entertainment and gaming apps, where user sessions are long, engagement is deep, and intent signals are more uniform. These verticals are better suited to delivering meaningful performance and high ROI for advertisers. By contrast, utility or search-focused GenAI tools face commoditization and churn, and are more likely to be absorbed by foundational model providers over time.
Vision: The Ad Platform for GenAI
Kontext’s ambition is to become the AppLovin / TradeDesk / DoubleClick of the GenAI era, owning the monetization layer for GenAI-native apps.
Early results are promising. Kontext is already delivering:
- 2-3x higher CTR vs traditional channels
- 20-30% lift in ROAS compared to platforms like Meta
- 9 live publisher integrations and growing rapidly
Just as AdMob did for mobile or DoubleClick did for the early web, Kontext is laying the infrastructure for how ads will be served in conversational environments.
The Team Behind It
Andrej Kiska brings a rare blend of strategic depth and founder tenacity. As a former co-founder and GP at Credo Ventures, he backed breakout companies like UiPath, 11Labs, and Productboard, before leaving VC to build Kontext.
Andrej has assembled a team of repeat founders and operators, many of whom he’s worked with before. Their execution pace has been exceptional, with a fully functioning ad network and real traction in-market.
We are thrilled to invest in Kontext’s Seed round and partner with Andrej and the team. We believe they are building the foundational ad platform of the GenAI economy and redefining how performance marketing works in this new world.
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