The advertising industry is on the brink of a significant transformation, driven by the rapid adoption of generative artificial intelligence (AI). This technological shift is set to revolutionize the entire advertising value chain. A recent study indicates that AI powers nearly 70% of advertising processes.
This figure is expected to rise to 94% by 2029. The rise of programmatic trading in digital media is facilitating real-time budget adjustments. More than half of ad buyers adjust their advertising strategies and placements every 30 days or less.
This leads to approximately $35 billion in global ad spending being reassessed and redeployed monthly. Ad buyers are increasingly integrating AI into their marketing workflows. They use these technologies to automate processes, improve targeting, and streamline content creation.
This enthusiasm for AI spans all businesses, from large enterprises to small and medium-sized businesses, creators, and micro-influencers. For ad platforms, this new market presents both opportunities and challenges. They must figure out their role while facing intensifying competition from retail, finance, and travel sectors.
Strategic imperatives critical for advertising platforms
Accenture identifies three strategic imperatives critical for ad platforms to secure a place on advertisers’ media plans and deliver shareholder value:
- AI is transforming the advertising industry.
Focus on the advertisers’ experience while accelerating AI adoption. The goal should be to use AI to change the entire advertiser journey. - Redefine the role of sales representatives.
Sales representatives empowered by AI tools can become “super-sellers,” providing deep platform knowledge and AI support. - Customize go-to-market plans for different advertiser segments.
Different types of advertisers require bespoke services. AI can help in tailoring these approaches. The stakes are high, with $750 billion in digital ad spending shifting quickly.
Advertising platforms must integrate AI strategically and adopt a buyer-focused mindset to take advantage of this once-in-a-generation opportunity. The global ad market is expected to exceed $1 trillion next year.
Platforms that strategically implement AI and prioritize the advertiser experience will likely emerge as industry leaders.
Image Credits: Photo by Eleni Afiontzi on Unsplash
