A new startup has obtained $5 million in seed funding to develop advertising solutions for artificial intelligence applications. The company, Koah, aims to help developers monetize their AI products through targeted ads.
As AI chatbots and assistants gain popularity, Koah believes advertising will play a crucial role in making these technologies profitable globally. The startup focuses on smaller AI apps built on top of large language models, particularly those with users outside the United States.
Koah’s co-founder and CEO highlighted the challenge of monetizing AI products in emerging markets where users may be unwilling to pay for subscriptions. By integrating relevant ads into AI conversations, Koah hopes to provide an alternative revenue stream for developers facing high operational costs.
Several AI applications are already using Koah’s ad platform, including the AI assistant Luzia and the student research tool Liner. Advertisers on the platform include companies like UpWork and Skillshare. Koah claims its ads achieve click-through rates of 7.5%, significantly higher than traditional digital advertising.
The startup’s approach involves displaying sponsored content at appropriate moments during AI interactions. For instance, a user discussing business strategies might see an ad for freelance services.
Koah’s seed funding round was led by Forerunner, with additional investors including South Park Commons and AppLovin co-founder Andrew Karam. Forerunner partner Nicole Johnson emphasized the need for diverse revenue models in consumer AI services, suggesting that advertising will likely play a significant role.
As AI applications continue to evolve, Koah aims to refine its advertising methods to enhance user engagement while providing effective monetization options for developers.
