Report Overview
Artificial Intelligence (AI) In Highlights
Artificial Intelligence (AI) in Advertisement Market Size:
The Artificial Intelligence (AI) in Advertisement Market is expected to grow at a CAGR of 26.37%, reaching a market size of US$197.310 billion in 2030 from US$61.230 billion in 2025.
AI in advertising employs artificial intelligence technologies and methods to enhance several aspects of an advertising campaign, including targeting, content generation, optimization, and analysis. Some prominent elements and tendencies of advertising technology in the scope of AI are AI-based advertising systems, programmatic advertising, advertising segmentation, and advertising personalization. AI advertising systems utilize machine learning to collect and analyze the data, control and manage advertising campaigns, and adjust the advertisement orientation in real time.
Additionally, it includes audience targeting, advertising design enhancement, and results analysis technologies. The AI in the advertising market is influenced by the upsurge of AI in advertising solutions, digitalization, and better advertising approaches. There are also some barriers, such as privacy concerns, inappropriate advertisement practices, and complications. The market, however, presents a viable space for inventions.
Artificial Intelligence (AI) in Advertisement Market Growth Drivers:
- Increasing AI data-driven advertising is contributing to AI in the advertising market.
The growing data from various sources, including online activity, attributes of people, and buying records, makes it easy for advertisers to pinpoint their adverts. AI systems can use big data sets to capture audience segments and predict purchase behavior.
Platforms for demand-side advertising from Adobe have led the market. Whenever a client wants to buy advertisement space on mobile sites and applications, they do that through a mobile DSP. Display DSPs are employed for producing web banner advertisements. Video DSPs are used for editing and processing web-based video advertisements. It is the only omnichannel DSP that applies and combines both advertising and marketing technologies, equally producing the best user experience across the platforms. Data-driven advertising gives marketers insights and possibilities for automation with AI-enhanced data processing. The volume and depth of data are on the increase, implying that the intersection of AI and data-driven advertising will drive more innovations and efficiency in the advertising business.
- Growing digital advertising is contributing to AI in the advertising market.
The expansion of global digital ad expenditure is attributed to the emergence of a wide range of digital media channels and platforms. This includes social networks, search engines, mobile apps, and video streaming services, creating opportunities for much-needed advertising solutions based on AI technologies.
Among the different kinds of tools developed is the Plan Campaigns project offered by StackAdapt, which helps accelerate the campaign planning and execution process, enabling users to create realistic customer journeys and simultaneously hit goal metrics. It provides the ability to make forecasts in real-time and adjust them for budgets, targets, and geographical areas. It contains an Ad Previewer for visualizing display, video, and native ads, which the Creative Studio can modify. The growth of spending on digital remains conducive to creating an ecosystem where AI can leverage these factors to fuel innovation and practice improvement within the advertising space.
- Rising demand for content creation is contributing to AI in the advertising market.
Advanced AI-driven content personalization engines now utilize machine learning algorithms to analyze user behavior and preferences, delivering tailored links to related content. This increases the importance of AI in marketing as it allows marketers to make the content much more engaging and relevant to their audience. For instance, content that requires writing, such as blogs and social media updates, is also created by AI techniques. Using machine learning algorithms and natural language processing enables AI to generate content for different audiences and channels, easing marketers' work in producing content in large quantities.
Moreover, digital assistants like chatbots, digital companions, and voice assistants are technologies that respond to users’ requests using various techniques such as machine learning, computer vision, and natural language processing. The use of virtual assistance in many areas, such as customer care, health care, finance, and education, improves the efficiency and effectiveness of human-computer interaction in those fields, fuelling the segment’s growth.
Major Challenges in Artificial Intelligence (AI) in Advertisement Market:
- Data privacy concerns are anticipated to hamper the market growth
Issues regarding the use of data and the need for customer consent may restrict the usage of large amounts of data required for appropriate machine learning model development. The strengthening of data protection laws like the European Union’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) in the US, which limit the capture, handling, and use of personal information for commercial purposes, may impede the use of such data for purposes of AI-enabled marketing campaigns.
Artificial Intelligence (AI) in Advertisement Market Geographical Outlook:
- North America is witnessing exponential growth during the forecast period
The North American market is expected to hold the largest share. This is because AI in marketing has been adopted in North America for various reasons, such as data intelligence and analytics, programmatic advertising, chatbots, recommendation systems, content development, and consumer tailoring experiences, among many others.
In addition, marketing with the help of AI technologies is practiced in various sectors in North America, including retail and e-commerce, banking and financial services, IT, arts and entertainment, and health, among many others.
Furthermore, many corporations and SMEs in North America are also using AI in marketing. Even though these are solutions geared towards bigger companies, as many of them have enough resources to implement the technology, it is becoming available to SMEs through numerous cloud-based solutions. Therefore, this is expected to enhance the regional market growth.
Artificial Intelligence (AI) in Advertisement Market Key Developments:
- November 2025: Coca-Cola Releases AI-Generated Holiday Ads Globally. Coca-Cola launched upgraded AI-generated "Holidays Are Coming" ads featuring nonhuman characters (e.g., anthropomorphic animals and AI Santa), building on 2024's efforts with improved craftsmanship using tools like OpenAI's Sora and Google's Veo 3, despite backlash over glitches and "soulless" aesthetics.
- November 2025: McKinsey Releases 2025 State of AI Survey. McKinsey's survey shows 88% of organizations using AI in at least one function (up from 78% in 2024), with advertising and marketing as key growth areas for personalization and optimization; high performers report 65%+ adoption in these functions, emphasizing value capture through workflow redesign.
- October 2024, pioneering ad tech company Amazon Ads announced a new advanced tool for advertisers aimed at easier and more effective production of video ads for users. Employing generative AI technology, every user who would like to create a video ad within a few minutes, and free of charge, can use a new feature called Video Generator.
- October 2024, Google Marketing presented its outlook on advertising in the age of artificial intelligence. They demonstrated how advertisements would blend in perfectly with the new Search functions, giving users more chances to satisfy customer demands and build stronger relationships while staying firmly in control. They provided the most recent developments to broaden the range of queries that users can ask Google through artificial intelligence.
List of Top Artificial Intelligence (AI) in Advertisement Companies:
- Adobe
- Rytr
- Jasper
- AdCreative
- StackAdapt Inc.
Artificial Intelligence (AI) in Advertisement Market Scope:
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
|
AI in the Advertisement Market Size in 2025 |
US$61.230 billion |
|
AI in the Advertisement Market Size in 2030 |
US$197.310 billion |
| Growth Rate | CAGR of 26.37% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2025 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Billion |
| Segmentation |
|
| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
|
List of Major Companies in AI in the Advertisement Market |
|
| Customization Scope | Free report customization with purchase |
Artificial Intelligence (AI) in Advertisement Market Segmentation:
- By Technology
- Machine learning
- Natural language processing (NLP)
- Computer Vision
- Others
- By Deployment
- Cloud
- On-Premise
- By Application
- Social media advertisement
- Optimize advertising budget
- Manage Ads
- Ad Variations
- Personalize Ads
- Others
- By Geography
- North America
- USA
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Others
- Europe
- Germany
- France
- UK
- Spain
- Others
- Middle East and Africa
- Saudi Arabia
- UAE
- Israel
- Others
- Asia Pacific
- China
- Japan
- India
- South Korea
- Indonesia
- Taiwan
- Others
- North America