Jun 11, 2024 - Business
AI adoption in advertising happening faster than expected
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More than 90% of advertising will be AI-enabled by 2029, three years earlier than originally anticipated by GroupM — one of the world's largest ad-buying agencies — per a new projection out today.
- The vast majority of advertising revenue (69.5%) is already AI-enabled as of this year.
Why it matters: The rapid adoption of new consumer-facing generative AI tools, such as ChatGPT and Gemini, has put more pressure on the advertising industry to create personalized experiences for consumers.
Of note: GroupM's latest forecast doesn't include using AI for ad creative, which has already been widely adopted.
- Advertising-enabled means AI, mostly generative AI, is used to help optimize the delivery and performance of an ad through things like recommendation algorithms, natural language processing and search optimization.
What to watch: Some mediums are adopting AI tools faster than others.
- 🎧 The integration of AI into audio advertising showed the largest increase from GroupM's original 2022 estimate.
- 🎙️ The agency now estimates that more than 75% of all digital audio ad revenue will be enabled by AI by the end of 2025, up from around 25% in its 2022 forecast.
