Artificial Intelligence, more commonly known as AI, is slowly creeping into our daily lives, and we do not even suspect it one bit. It is not making huge decisions for you. Still, it might be influencing the more minor decisions and the past week, jumping from one social platform to another. How many ads did you come across? One can say that there are too many to count. Who precisely is controlling all these ads that are specifically targeted to you?
Artificial Intelligence (AI) now accounts for the significant spending in ad revenue this year. The figures locked in at a shocking $370 billion, and they are only expected to increase in the upcoming years, according to a report released by GroupM. The particular report also dives into the influence of Artificial Intelligence AI-enabled media influence over ad spending in the coming years. It is predicted that ad spending, specifically that of media, will reach almost $1.3 trillion. It is either this or more than 90% of all media spending. It is not expected to happen over a decade or so but in just a few short years. The forecast might come true by 2032, according to the report.
As of now, non AI enabled media holds about 60% of the total media ad spending. However, AI enabled media ad spending is growing at an exponential rate. How did this exactly happen? And why is AI enabled media ad spending is preferred more over non AI enabled media Ad spending? Kate Scott-Dawkins, The Global Director of Business Intelligence at GroupM, gave her two cents on the developing situation. While she claims that the 10-year prediction is speculative mainly, she also mentions that this research was done based on studying the current trends. The analysis was not easy either for the team. Numerous factors went into whether media Ad spending will be considered AI enabled or not. They came to the conclusion that if Artificial Intelligence were used anywhere from gathering information to optimisation, then it would come under the umbrella of AI enabled media Ad spending. Any algorithms such as neural networks and computer learning were considered as the AI enabled media Ad spending by the group. This allowed for more straightforward analysis and data study to making more accurate forecasts.
The report also dives into other sectors other than AI enabled media Ad spending. It considers the mediums that will be used to project Ads to its targeted customers. From the graphs they put out for the general public, one can easily observe that digital TV is at the lowest of all the mediums. During the next ten years, companies will be less likely to be advertising on the said medium.
For now, some factors are not being considered by the forecast report, such as chatbots that are handled by Artificial Intelligence and their impact in the coming years. One thing is for sure; Artificial Intelligence is taking over the Ad industry.
Read next: Zero Party Data on the Rise as Brands Adjust to the New Normal
Artificial Intelligence (AI) now accounts for the significant spending in ad revenue this year. The figures locked in at a shocking $370 billion, and they are only expected to increase in the upcoming years, according to a report released by GroupM. The particular report also dives into the influence of Artificial Intelligence AI-enabled media influence over ad spending in the coming years. It is predicted that ad spending, specifically that of media, will reach almost $1.3 trillion. It is either this or more than 90% of all media spending. It is not expected to happen over a decade or so but in just a few short years. The forecast might come true by 2032, according to the report.
The report also dives into other sectors other than AI enabled media Ad spending. It considers the mediums that will be used to project Ads to its targeted customers. From the graphs they put out for the general public, one can easily observe that digital TV is at the lowest of all the mediums. During the next ten years, companies will be less likely to be advertising on the said medium.
For now, some factors are not being considered by the forecast report, such as chatbots that are handled by Artificial Intelligence and their impact in the coming years. One thing is for sure; Artificial Intelligence is taking over the Ad industry.
Read next: Zero Party Data on the Rise as Brands Adjust to the New Normal
