Key Market Driver In Generative Artificial Intelligence (AI) In Advertising Industry 2025: Impact Of E-Commerce Growth

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LONDON, GREATER LONDON, UNITED KINGDOM, February 25, 2025 /EINPresswire.com/ -- What's Behind The Exponential Growth Of The Generative AI In Advertising Market?

The generative artificial intelligence AI in advertising market has seen substantial growth in recent years. It is expected to escalate from $2.72 billion in 2024 to $3.39 billion in 2025, at a compound annual growth rate CAGR of 24.6%. Factors contributing to this growth in the historic period include the rise of social media, an increasing emphasis on content marketing, the emergence of programmatic advertising, and a growing demand for personalized and targeted advertising. Additionally, rising competition among brands for consumer attention and the evolution of data analytics and consumer insights have fuelled this market surge.

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How Will The Generative AI In Advertising Market Continue To Grow In The Future?

The generative AI in advertising market is set for remarkable expansion in the coming years. It is projected to reach $8.1 billion by 2029, with a compound annual growth rate CAGR of 24.4%. This projected growth can be attributed to the fusion of AI with augmented reality and virtual reality experiences, the increasing application of AI in cross-channel marketing strategy optimization, and growing investments in AI research and development by leading tech companies. The rise of autonomous advertising systems leveraging real-time data analysis and a growing reliance on visual and video content are key trends driving this forecasted growth.

What Role Does E-Commerce Play In This Market's Growth?

The explosive growth in e-commerce is expected to further propel the generative AI in advertising market. The uptick in online shopping, driven by widespread digital technology adoption and broader internet availability, is stimulating this market. Generative AI in advertising bolsters e-commerce by creating personalized and targeted ad campaigns, optimizing customer engagement, and enhancing digital marketing strategies' effectiveness. As per data from the U.S. Census Bureau, a US-based government agency, retail e-commerce sales in the second quarter of 2024 totalled $282.3 billion, marking a 5.3% increase from the first quarter of 2023 and a staggering 6.6% rise compared to the second quarter of 2023. This growth in e-commerce is ultimately fuelling the advancement of the generative AI in advertising market.

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Which Major Companies Are Shaping The Generative AI In Advertising Market?

Major players in the generative AI in advertising market constitute the likes of 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., and others. These companies have been carving out their space in the market, employing strategic innovations and advanced technologies.

What Key Developments And Trends Are Emerging In This Market?

Some significant trends are emerging in the generative AI in advertising market, particularly related to automated content creation technologies. Companies are leveraging image generation assistants to improve targeted marketing effectiveness and boost customer engagement through sophisticated algorithms and data-driven insights. These developments are enhancing marketing campaigns with visually compelling, tailored content, thus reducing reliance on extensive manual design work.

How Is The Generative AI In Advertising Market Segmented?

By Deployment Mode: Cloud-Based, categorized into Public Cloud, Private Cloud, Hybrid Cloud; and On-Premises, split into Small & Medium Enterprises SMEs and Large Enterprises.
By Application: This includes Content Generation; Personalized Advertising; Customer Engagement; Market Analysis; Other Applications.
By Industry Vertical: Segmentation by sectors such as Retail; Healthcare; Financial Services; Automotive and Other Industry Verticals.

Where Is The Generative Ai In Advertising Market Most Prominent?

North America dominated the generative AI in advertising market in 2024. However, the report also includes other geographical regions such as Asia-Pacific, Western Europe, Eastern Europe, South America, Middle East, and Africa.

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