The firm is particularly keen to tap into the “long tail” of apps. This part is filled with applications whose user bases extend well past the borders of the United States. As Baird pointed out, we need to find new solutions that focus on users’ “commercial intent” in a more effective manner. Once perfected, this approach has the potential to create infinite possibilities for standardized “vibe coded” applications. These applications are extremely difficult to run at scale without proper monetization methods.
Koah has already done impressive things in the advertising field. It has pulled clickthrough rates of 7.5%, serving up results four to five times as effective as the old way of doing things. Our early partners on the platform have posted jaw-dropping total earnings. Some even made over $10,000 in their first month with Koah handling all their advertising. The company runs ads today in mobile apps. These are the daily AI assistant Luzia, parenting app Heal, student research tool Liner, and creative platform DeepAI.
In discussing Koah’s approach, Baird stated, “What is the user looking for and how do we give that to them?” This seemingly simple question sums up the company’s greater mission to provide more effective, useful advertisements that improve not interrupt user experiences. Koah places its ads directly in the middle of the purchase funnel. Since this strategy sits somewhere between building awareness and driving true in-market purchases, in-ad messaging has become an essential aspect of the user experience.
As Baird noted, Koah is not going to introduce ads into widely used platforms such as ChatGPT. This decision is particularly striking given the increasing role advertising is playing in consumer AI. Instead, the emphasis shifts to creating long-term monetization paths for these smaller, but highly scalable apps.
Nicole Johnson, a partner at Forerunner, echoed the point that many revenue models will be needed in consumer AI. She pointed to the ever-increasing role advertising will have in this new landscape. She referred to the current landscape as “the elephant in the room amongst builders and investors,” underscoring the need for effective monetization strategies as these applications gain popularity.
Baird has a deep understanding of the digital landscape from his former life as a tech reporter for Adweek. He honed his craft as a senior editor at VentureBeat. He currently resides in New York City. He constantly investigates innovative paths to promote profitability for AI applications across the globe. He acknowledged the challenges these applications face once they extend beyond regions like San Francisco, stating, “Once these things get outside San Francisco, there’s only one way to make [them profitable] on a global scale.”
