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Global Generative Artificial Intelligence (AI) In Advertising Market Expected to Achieve 24% CAGR by 2029: Growth Forecast Insights

10-30-2025 05:05 AM CET | IT, New Media & Software

Press release from: The Business Research Company

Generative Artificial Intelligence (AI) In Advertising Market

Generative Artificial Intelligence (AI) In Advertising Market

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How Large Will the Generative Artificial Intelligence (AI) In Advertising Market Size By 2025?
There has been a significant expansion in the generative artificial intelligence (ai) in advertising market in the last few years. Its size is poised to increase from $2.72 billion in 2024 to $3.37 billion in 2025, with a compound annual growth rate (CAGR) of 24.0%. The phenomenal growth observed during the historical period is accredited to factors such as the widespread rise of social media, the amplified significance of content marketing, the advent of programmatic advertising, and the escalating need for personalized and targeted advertising. The stiffening rivalry among brands seeking consumer attention and the development of data analytics and consumer insights have also played pivotal roles.

How Big Is the Generative Artificial Intelligence (AI) In Advertising Market Size Expected to Grow by 2029?
The market size of generative artificial intelligence (AI) in advertising is anticipated to witness a sizeable surge in the upcoming years, escalating to a valuation of $7.96 billion by 2029, with a Compound Annual Growth Rate (CAGR) of 24.0%. The upswing during the forecast period can be traced back to the fusion of AI with augmented and virtual reality experiences, the escalating application of AI in enhancing cross-channel marketing policies, surging investments in AI R&D by key tech companies, and the emergence of self-governing ad systems that exploit real-time data analysis coupled with a growing dependence on visual and video content. Key trends expected in the forecast period encompass hyper-personalized content generation, ethical and transparent AI applications, voice and conversational AI, AI-expedited predictive analytics expansion, and multimodal AI systems.

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https://www.thebusinessresearchcompany.com/report/generative-artificial-intelligence-ai-in-advertising-global-market-report

Which Key Market Drivers Powering Generative Artificial Intelligence (AI) In Advertising Market Expansion and Growth?
The rise in e-commerce, propelled by advances in digital technology, online shopping convenience, and increased internet accessibility, is anticipated to stimulate the growth of the generative Artificial Intelligence (AI) in the advertising market. Generative AI plays a pivotal role in e-commerce by developing customized and targeted advertising campaigns, amplifying customer engagement, and boosting the potency of digital marketing strategies. For instance, as reported by the U.S. Census Bureau, a US government agency, in the second quarter of 2024, e-commerce retail sales reached a total of $282.3 billion. This figure represents a 5.3% increase from the first quarter of 2023 and a 6.6% rise from the second quarter of the same year. Therefore, the expansion of e-commerce is fueling the growth of the generative AI in the advertising market.

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Which Fast-Growing Trends Are Poised to Disrupt the Generative Artificial Intelligence (AI) In Advertising Market?
Leading entities in the generative artificial intelligence in advertising sector are progressing automated content creation technologies like image generation assistants, aiming to augment targeted marketing efficiency and elevate customer engagement by harnessing advanced algorithms and insights based on data. Image generation assistants for adverts rapidly create personalized, premium quality visuals, enriching marketing strategies with custom-made, eye-catching content, thereby diminishing the dependence on extensive manual designing. For example, Meta Platforms, Inc., a technology firm based in the US, rolled out its generative AI tools for advertising in May 2024, now encompassing functions for automatically generating image alterations and text overlays. This step constitutes a part of Meta's wider investment endeavors into generative AI, intending to convince advertisers of the capacity of automated creative solutions to heighten the efficacy of their campaigns. This initiative mirrors a similar revelation by Google in February where it revealed AI ad tools with images labeled with the SynthID watermarking technology from their DeepMind research lab.

What Are the Emerging Segments in the Generative Artificial Intelligence (AI) In Advertising Market?
The generative artificial intelligence (ai) in advertisingmarket 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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Who Are the Global Leaders in the Generative Artificial Intelligence (AI) In Advertising Market?
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

Which are the Top Profitable Regional Markets for the Generative Artificial Intelligence (AI) In Advertising Industry?
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.

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