GroupM report projects major growth in AI-enabled advertising
GroupM has released a new report, The Next 10: Artificial Intelligence, exploring the future of AI-enabled advertising and what advertisers can do to prepare.
The announcement:
Across the key sectors, The Next 10: Artificial Intelligence—written by Kate Scott-Dawkins and other contributors across our group—explores the technology and behaviours shaping the next decade of advertising with some major implications including:
- Declining reach of linear TV and less tolerance of irrelevant, interruptive ad pods
- Growth of audio-first devices with digital assistants (e.g. ear buds and smart home speakers) means that voice search will overtake text-based search
- Data will most often be managed on-device and will be increasingly obfuscated or anonymized by AI and privacy services
The overall forecast: AI-enabled marketing already accounts for more than $370 billion of global advertising revenue, or roughly 45% of all advertising. And its growth will only continue. By 2032, AI-enabled advertising is likely to account for $1.3 trillion in advertising revenue, more than 90% of the total.
Additional takeaways:
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Advances in AI and these evolving media channels could result in marketers increasingly tying together products, consumer experiences and advertising experiences:
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Automotive: the use of generative AI and digital twins will enable greater personalization of advertising in the sector—i.e.: a custom color model shown driving in the buyer’s own city.
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CPG: machine learning paired with genomic sequencing will make personalized nutrition and personal care products increasingly possible.
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Apparel: computer vision, machine learning algorithms and generative AI could disrupt the apparel and retail industry by creating a vast gray market of copycat goods or user generated designs competing for image searches.
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Entertainment: personalized storytelling could become a reality as ads and IP are customized based on audience data and/or selections.
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Source: GroupM
