How much is the generative artificial intelligence (ai) in advertising market worth, and how is it expected to expand?
The generative artificial intelligence (AI) in advertising market size has grown exponentially in recent years. It will grow from $2.72 billion in 2024 to $3.39 billion in 2025 at a compound annual growth rate (CAGR) of 24.6%. The growth in the historic period can be attributed to the rise of social media, the growing importance of content marketing, emergence of programmatic advertising, Increasing demand for personalized and targeted advertising, Rising competition among brands for consumer attention, the evolution of data analytics and consumer insights.
The generative artificial intelligence (AI) in advertising market size is expected to see exponential growth in the next few years. It will grow to $8.1 billion in 2029 at a compound annual growth rate (CAGR) of 24.4%. The growth in the forecast period can be attributed to the integration of AI with augmented reality and virtual reality experiences, Growing use of AI in optimizing cross-channel marketing strategies, Increasing investment in AI research and development by major tech companies, the rise of autonomous advertising systems leveraging real-time data analysis, growing reliance on visual and video content. Major trends in the forecast period include hyper-personalized content creation, ethical and transparent AI practices, voice and conversational AI, expansion of AI-driven predictive analytics, and multimodal AI systems.
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Which industry factors have accelerated the generative artificial intelligence (ai) in advertising market’s expansion?
The growth in e-commerce is expected to propel the growth of generative artificial intelligence (AI) in advertising market going forward. The rise in e-commerce is driven by the widespread use of digital technology, the ease of online shopping, and broader internet availability. Generative artificial intelligence in advertising supports E-commerce by creating personalized and targeted ad campaigns, optimizing customer engagement, and enhancing the effectiveness of digital marketing strategies. For instance, in August 2024, according to the U.S. Census Bureau, a US-based government agency, retail e-commerce sales for the second quarter of 2024 totaled $282.3 billion, marking a 5.3% increase from the first quarter of 2023 and a 6.6% rise compared to the second quarter of 2023. Therefore, the growth in e-commerce is driving the growth of generative artificial intelligence (AI) in advertising market.
What are the primary segments of 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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Which firms are leading the generative artificial intelligence (ai) in advertising market?
Major companies operating in the generative artificial intelligence (AI) in advertising market areMicrosoft 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 market trends are set to define the future of the generative artificial intelligence (ai) in advertising market?
Major companies operating in the generative artificial intelligence in advertising are developing automated content creation technologies, such as image generation assistants, to enhance the effectiveness of targeted marketing and improve customer engagement by leveraging sophisticated algorithms and data-driven insights. Image generation assistants for ads can create customized, high-quality visuals quickly, enhancing marketing campaigns with tailored, visually appealing content while reducing the need for extensive manual design work. For instance, in May 2024, Meta Platforms, Inc., a US-based technology company, launched its generative AI tools for advertising, which will now include features for automatically creating image variations and adding text overlays. The move is part of Meta’s broader investment in generative AI, aimed at demonstrating to advertisers that automated creative solutions can enhance the effectiveness of their campaigns. This development follows a similar announcement by Google in February, where it introduced AI ad tools with images marked using the SynthID watermarking technology from its DeepMind research lab.
Which geographic trends are shaping the generative artificial intelligence (ai) in advertising market, and which region has the highest market share?
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.
What Does The Generative Artificial Intelligence (AI) In Advertising Market Report 2025 Offer?
The generative artificial intelligence (ai) in advertising market research report from The Business Research Company offers global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities.
Generative artificial intelligence in advertising refers to the use of advanced AI technologies, particularly generative models, to create and produce advertising content. This includes generating text, images, videos, and other multimedia elements tailored to specific audiences or marketing goals.
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