‘AI advertising to be $1.3 trillion dollar business by 2023’

Cindy Apt

GroupM has published a new study titled ‘The Next 10: Artificial Intelligence’. This study examines how the media landscape and consumer behaviour will shift over the coming decade, in large part due to AI-enabled advertising that likely already accounts for nearly half of all advertising revenue, or more than US$300 billion.

Some major implications of the study include:

  • 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

Additional takeaways:

Advances in AI and these evolving media channels could result in marketers increasingly tying together products, consumer experiences and advertising experiences:

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.

CPG: machine learning paired with genomic sequencing will make personalized nutrition and personal care products increasingly possible.

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.

Entertainment: personalized storytelling could become a reality as ads and IP are customized based on audience data and/or selections.

 The Next 10 also raises ethical and responsible AI questions such as:

How do we protect at-risk users and all consumers from AI that exploits dark patterns or behavioural “hacks”?

What are the ways we can protect against the weaponisation of AI in advertising tools and platforms used to amplify misinformation, deep fakes, fraud and abuse?

What is our level of comfort for what remains hidden in the black box of machine learning?

Should people be notified when they’re speaking or chatting with an AI chatbot and not a human?

How do we build safety and accountability into algorithmic incentives?

How should disclosures about the use in AI in advertising work?

 As per the report, enabled advertising will be a $1.3 trillion dollar business by 2032. By then, it’s likely that AI-enabled advertising will represent more than 90% of all advertising as channels like TV, Audio and Outdoor become more digital, addressable and programmatic, it says.

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https://www.exchange4media.com/marketing-news/ai-advertising-to-be-13-trillion-dollar-business-by-2023-119544.html

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