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Strong Growth Ahead: Generative Artificial Intelligence (AI) In Advertising Market Size To Grow At Arecord 24.4% Cagr By 2029
Generative Artificial Intelligence (AI) In Advertising Market
How Big Is the Generative Artificial Intelligence (AI) In Advertising Market Size Expected to Be by 2034?
The market size for generative artificial intelligence (AI) in advertising has witnessed rapid expansion in the past few years. The market is projected to soar from $2.72 billion in 2024 to $3.39 billion in 2025, reflecting a compound annual growth rate (CAGR) of 24.6%. This remarkable growth during the historic period can be linked to factors such as the surge in social media, the escalating significance of content marketing, the advent of programmatic advertising, the growing need for personalized and targeted advertising, intensified competition among brands to arrest consumer attention, and the development of data analytics and consumer insights.
The market size of generative artificial intelligence (AI) within the advertising sector is predicted to experience significant increase in the forthcoming years, potentially achieving $8.1 billion by 2029 with a compound annual growth rate (CAGR) of 24.4%. This anticipated growth can be associated with several factors, including the fusion of AI, augmented and virtual reality technologies, enhanced cross-channel marketing strategies using AI, escalated AI R&D investments by prominent tech firms, the emergence of independent advertising platforms utilizing real-time data analysis, and an increasing dependency on visual and video mediums. Trends predicted for the forecast period encompass hyper-personalized content generation, ethical and transparent AI methodologies, voice and conversational AI, expansion of predictive analytics driven by AI, and the development of multimodal AI systems.
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What Are the Emerging Segments Within the Generative Artificial Intelligence (AI) In Advertising Market?
The generative artificial intelligence (AI) in advertising market covered in this report is segmented -
1) By Deployment Mode: Cloud-Based; On-Premises
2) By Application: Content Generation; Personalized Advertising; Customer Engagement; Market Analysis; Other Applications
3) By Industry Vertical: Retail; Healthcare; Financial Services; Automotive; Other Industry Verticals
Subsegments:
1) By Cloud-Based: Public Cloud; Private Cloud; Hybrid Cloud
2) By On-Premises: Small & Medium Enterprises (SMEs); Large Enterprises
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What Long-Term Drivers Are Shaping Generative Artificial Intelligence (AI) In Advertising Market Trends?
The expansion of e-commerce is predicted to drive the development of generative artificial intelligence (AI) in the advertising market. This growth is largely fueled by the extensive utilization of digital technology, the convenience of online shopping, and wider internet access. In advertising, genitive artificial intelligence can boost e-commerce by devising personalized and targeted advertisement campaigns, maximizing customer interaction, and improving the efficiency of digital marketing techniques. For example, as reported by the U.S. Census Bureau, e-commerce sales in the second quarter of 2024 amounted to $282.3 billion, a growth of 5.3% from the first quarter of 2023 and a 6.6% increase from the second quarter of 2023. Thus, the increase in e-commerce is spurring the expansion of generative artificial intelligence (AI) in the advertising market.
Who Are the Top Competitors in Key Generative Artificial Intelligence (AI) In Advertising Market Segments?
Major companies operating in the generative artificial intelligence (AI) in advertising market are Microsoft Corporation, Meta Platforms Inc., Amazon Web Services Inc., accenture* plc, IBM Corporation, NVIDIA Corporation, Baidu Inc., Adobe Inc., Merkle Inc., Weber Shandwick International Ltd., HubSpot Inc., Zeta Global Holdings Corp., DataRobot Inc., Hootsuite Inc., BrightEdge Technologies Inc., Persado Inc., Matellio Inc., Brafton Inc., Bannerflow AB, Clarifai Inc., Aegis Softech
What Actigraphy Devices Market Trends Are Gaining Traction Across Different Segments?
Prominent players in the domain of generative artificial intelligence in advertising are focusing on the emergence of automatic content development technology, such as image generation assistants. These innovations use intricate algorithms and data-driven knowledge to increase the effectiveness of marketing campaigns and enhance customer engagement. The image generation assistants can rapidly produce tailored, high-quality visual content for advertisements, contributing to the appeal of marketing campaigns and reducing the necessity for labor-intensive manual designs. For example, Meta Platforms, Inc., a technology firm based in the United States, launched its generative AI-based advertising tools in May 2024. The tools now offer features for instant creation of image variations and text overlays, a progressive investment by Meta towards generative AI, aimed at showcasing to advertisers the potential of automated creative solutions to augment their campaign effectiveness. This initiative comes on the heels of an earlier announcement from Google in February, introducing AI advertising tools, marked with the SynthID watermarking technology from its DeepMind research lab.
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Which Regions Are Becoming Hubs for Generative Artificial Intelligence (AI) In Advertising Market Innovation?
North America was the largest region in the generative artificial intelligence (AI) in advertising market in 2024. The regions covered in the generative artificial intelligence (AI) in advertising market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Frequently Asked Questions:
1. What Is the Market Size and Growth Rate of the Generative Artificial Intelligence (AI) In Advertising Market?
2. What is the CAGR expected in the Generative Artificial Intelligence (AI) In Advertising Market?
3. What Are the Key Innovations Transforming the Generative Artificial Intelligence (AI) In Advertising Industry?
4. Which Region Is Leading the Generative Artificial Intelligence (AI) In Advertising Market?
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