Flowcode CEO Called for More Physical Advertising Spend
Brands should reevaluate out-of-home investment as AI agents shift how consumers receive information.
Updated on Sept. 23, 2026 in Advertising
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Should brands spend more on physical advertising rather than focusing primarily on digital ads?
At the Beet.TV Leadership Summit in Cannes, Flowcode CEO Tim Armstrong argued that companies are underinvesting in physical advertising relative to actual consumer time spent outdoors. The shift comes as AI agents begin to mediate the way consumers access information and make purchasing decisions.
Why it matters
Operators currently misallocate budgets due to an over-reliance on digital metrics, overlooking the 18% of the day consumers spend in the physical world. As AI agents prioritize utility over traditional ads, brands must establish a physical presence to remain relevant in consumer itineraries.
U.S. businesses allocate under 4% of advertising spending to out-of-home media compared to 10% in France. These investments face scrutiny as consumers continue to spend two hours and 27 minutes daily on social media despite spending 18% of their day in the physical world.
The players
Tim Armstrong
The CEO of Flowcode and a veteran executive in the advertising and media technology sector.
Flowcode
A technology company specializing in connecting offline and online consumer experiences.
The details
Businesses must adapt to an environment where AI agents process travel logistics and shopping itineraries, potentially bypassing traditional ad channels. By providing value and information directly to these agents, brands can secure placement where consumer choices are actually made. The strategy requires rebalancing budgets away from saturated digital platforms toward physical-world touchpoints that align with real-world consumer patterns.
Timeline
September 23, 2026: The article was published.
Market Landscape
The call for increased physical advertising challenges the industry's digital-first trend that has long dominated strategic planning. It highlights a widening gap between U.S. and international allocation benchmarks as consumer behavior in the physical world remains undervalued by traditional models.
Owners should re-evaluate their marketing mix to ensure physical-world presence is not being ignored in favor of digital-only channels. Assess whether your current products or services offer enough utility to be prioritized by consumer-facing AI agents.
The takeaway
The rise of AI agents means brands must pivot from capturing impressions to providing utility within consumer travel and shopping workflows. Monitor how peer companies integrate physical-world data into their AI-readiness strategies to avoid being sidelined by automated decision-making.
Further reading
For broader analysis on changing ad spend patterns, see the Advertising section.
Source note: This article includes information reported by Beet.TV - The Root to the Media Revolution.
Live Poll
Should brands spend more on physical advertising rather than focusing primarily on digital ads?
