Sometimes it can feel like AI has already upended the advertising industry, but the reality is that we are only just beginning to glimpse the impact of this transformational technology.
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, we are publishing new, proprietary forecasts on the size of AI in advertising. We estimate it 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.
This edition of The Next 10 also explores the technology and behaviors shaping the next decade of advertising with some major implications including:
- Declining reach of linear TV and less tolerance of irrelevant, interruptive ad pods
- Growth of audio-first devices with digital assistants (e.g.: ear buds 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
By 2032, the media landscape will look considerably different as a result of the widespread adoption of technology, AI and wireless connectivity. These advances in AI and these evolving media channels could result in marketers increasingly tying together products, consumer experiences and advertising experiences across a number of sectors:
- 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.