Unfortunately I think they will, as much as I'd hope for the opposite.

People already tolerate influencers, deliberate product placement, etc. Heck, most big content creator type content on YouTube/TikTok right now are basically infomercials disguised as entertainment, and people eat it up.

The problem with ads in LLM responses is now you can no longer trust (what little you could, anyway) the output. You have to constantly guess "did someone pay for this response or is it authentic?" and it goes further than just text responses with the new universal shopping cart thing and other agentic tools. When these things operate autonomously, how much influence are advertisers going to have? Could we see a malicious library pay for Gemini ads and now the coding model is adding it to coding projects?

My 2ct: The incentive shifts from gaming rankings to bidding the highest on Google’s keyword (or similar) auction. Google then promotes it as helpful while businesses maximize the amount they pay for that service. There is only one winner in this game.

Those of us who remember when Google first appeared and revolutionized search can testify to that.

I tried Google and that was it, Yahoo, Alta Vista, etc, where just little dots in the rear view mirror.

It's also just a much harder problem. At low margins the "solution" may very well be to genuinely make your widget superior to the competing widget for a given set of users or situations.

The AI doesn't have any understanding. You just have to tell it "this is helpful to AI". It has no critical discernment, it doesn't have a theory of mind to ask "why is the author of this information making this statement?"