AI-enabled advertising will be a $1.3 trillion dollar business by 2032: GroupM Report

GroupM published a new study, The Next 10: Artificial Intelligence. The study examines how the media landscape and consumer behaviour will shift over the coming decade, in large part due to AI-enabled advertising

GroupM has published a new study, The Next 10: Artificial Intelligence. This study examines how the media landscape and consumer behaviour will shift over the coming decade, in large part due to AI-enabled advertising that likely already accounts for nearly half of all advertising revenue, or more than US$300 billion.

In The Next 10 | Artificial Intelligence—written by Kate Scott-Dawkins and other contributors across our group—we look 10 years into the future to imagine where the changes we are experiencing today will lead—and what advertisers can do to prepare. In doing that, GroupM is publishing new, proprietary forecasts on the size of AI in advertising.

The report estimates AI Advertising will reach more than $370 billion of ad revenue this year and is likely to inform the vast majority of media by 2032, reaching $1.3 trillion, or more than 90% of total ad revenue.

Major Implications:

• Declining reach of linear TV and less tolerance of irrelevant, interruptive ad pods
• Growth of audio-first devices with digital assistants (e.g. earbuds and smart home speakers) means that voice search will overtake text-based search
• Data will most often be managed on-device and will be increasingly obfuscated or anonymized by AI and privacy services

Also Read: Spending on sports celebrity endorsement grew by 11% y-o-y in 2021: GroupM ESP Report

Key Takeaways:

Advances in AI and these evolving media channels could result in marketers increasingly tying together products, consumer experiences, and advertising experiences:

• Automotive: the use of generative AI and digital twins will enable greater personalization of advertising in the sector—i.e.: a custom color model shown driving in the buyer’s own city.
• CPG: machine learning paired with genomic sequencing will make personalized nutrition and personal care products increasingly possible.
• Apparel: computer vision, machine learning algorithms, and generative AI could disrupt the apparel and retail industry by creating a vast gray market of copycat goods or user-generated designs competing for image searches.
• Entertainment: personalized storytelling could become a reality as ads and IP are customized based on audience data and/or selections.

Ethical & Responsible AI Questions:

1. How do we protect at-risk users and all consumers from AI that exploits dark patterns or behavioral “hacks”?
2. What are the ways we can protect against the weaponization of AI in advertising tools and platforms used to amplify misinformation, deep fakes, fraud, and abuse?
3. What is our level of comfort with what remains hidden in the black box of machine learning?
4. Should people be notified when they’re speaking or chatting with an AI chatbot and not a human?
5. How do we build safety and accountability into algorithmic incentives?
6. How should disclosures about the use in AI in advertising work?

The report forecasts that AI-enabled advertising will be a $1.3 trillion dollar business by 2032.

By then, it’s likely that AI-enabled advertising will represent more than 90% of all advertising as channels like TV, Audio and Outdoor become more digital, addressable, and programmatic.

You can access the report below: