Stay ahead of the game

Sign up for our newsletter to receive the latest digital marketing strategies and insights for the month ahead, delivered straight to your inbox!

    AI Advertising Will Comprise 90% of Ad Revenue by 2032, Reaching $1.3 Trillion

    MarketingMarketing AIMarketing NewsResearch

    Everything You Need To Know in Less Than 50 Words

    Consumer ad interactions continue to shift over the next decade due to increased artificial intelligence-based advertising. AI already accounts for more than $300 billion in advertising revenue, meaning the media is on the incline, citing reports projecting it to reach $1.3 trillion by 2032.

    Tell Me More

    GroupM’s latest study, “The Next 10: Artificial Intelligence”, reveals that more companies are utilizing artificial intelligence to increase targeted ad revenue. Static promos not tailored to the individual are boring and see lower levels of click-through rates than AI-powered advertisements. Marketing development teams strive for higher consumer retention through artificial intelligence-generated ads and promos, since personalized content sees higher revenue streams.

    Imagine seeing an ad tailored to your needs with personalized touches produced by artificial intelligence. More personalization and customization in the ad industry could become the new normal as tech giants push for more artificial intelligence-based content.

    AI-enabled advertising allows for greater personalization tailored to consumers. For example, if you have decided to buy a new car, AI-generated ads could show you a completely customizable vehicle before you step in for a test drive. Other significant outputs of artificial intelligence advertising include:

    • Less irrelevant ads 
    • More avenues to reach wider audiences
    • Increased privacy settings managed by the user

    More and more companies are utilizing AI to increase targeted ad revenue. What are the benefits and the concerns arising with the new technology?

    Consumers’ Concerns 

    With this new technology making its way into our daily lives, consumers have ethical and moral questions about how to utilize AI advertising responsibly. Some concerns users have centered around how comfortable they are interacting with a non-human entity.

    Questions concerning consumers revolve around whether or not companies should notify users when the entity they are talking or texting with is a bot or a real human being. Consumers also want to know how these companies protect their personal information against hacking, fraud, and other security issues.

    Main Takeaways

    With AI-enabled ad revenue set to reach $370 billion this year and only continue to grow, artificial intelligence-generated advertisements aim for a long shelf life. Consumers already interact with these types of ads regularly. Tech and marketing companies expect to see a rise in click rates among artificial intelligence-related ads.

    Consumer experiences, especially those connected to artificial intelligence, are ubiquitous within the social media space as marketing teams try to keep up with the demand for personalized and customized advertisements. AI features higher click-through rates and produces more revenue than regular advertisements.

      Get exclusive CMO tips that I only share with email subscribers.

      The next step in the AI-enabled ad pipeline is to create customized portals and answer some complicated questions that artificial intelligence brings up, including how to gather data safely and responsibly. Companies are already building reliable safety protocols in hopes of keeping user data safe.

      With more apparel and entertainment companies utilizing these programs, consumers will see an uptick in AI-enable advertisements while companies reap the rewards. Hopefully, we will see some ethical and responsible standards of operating along with the incredible growth of AI.

      Source: GroupM

      Share this article
      Back to top