Mumbai: AI-enabled marketing already accounts for nearly half of all advertising revenue, that is more than $300 billion of global advertising revenue. And its growth is only set to project upwards. By 2032, AI-enabled advertising could account for $1.3 trillion in advertising revenue, more than 90 per cent of the total, according to a forecast from GroupM. The global media investment company has released a new study titled 'The Next 10: Artificial Intelligence' examining how the media landscape and consumer behaviour will shift over the coming decade.
The forecast shows that as channels like TV, audio and outdoor become more digital, addressable and programmatic by the year 2032, AI-enabled advertising will represent more than 90 per cent of all advertising. Consumers will expect marketing messages that are relevant, personalised, and non-interruptive, greatly simplifying their daily decision-making- all in a privacy-first way.
The report also revealed some major implications including the declining reach of linear TV and less tolerance of irrelevant, interruptive ad pods.
It also noted the growth of audio-first devices with digital assistants (i.e. earbuds and smart home speakers) means that voice search will overtake text-based search.
An additional implication is that data will most often be managed on-device and will be increasingly unclear or anonymised by AI and privacy services.
Other takeaways across a few key categories from the report:
Advances in AI and these evolving media channels could result in marketers increasingly tying together products, consumer experiences and advertising experiences:
o Automotive: The use of generative AI and digital twins will enable greater personalisation of advertising in the sector—i.e.
a custom color model shown driving in the buyer’s own city.
o CPG (consumer packaged goods): Machine learning paired with genomic sequencing will make personalised nutrition and personal care products increasingly possible.
o 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.
o Entertainment: Personalised storytelling could become a reality as ads and IP are customised based on audience data and/or selections.
The Next 10 also raises ethical and responsible AI questions such as:
· How do we protect at-risk users and all consumers from AI that exploits dark patterns or behavioural “hacks”?
· What are the ways we can protect against the weaponisation of AI in advertising tools and platforms used to amplify misinformation, deep fakes, fraud, and abuse?
· What is our level of comfort for what remains hidden in the black box of machine learning?
· Should people be notified when they’re speaking or chatting with an AI chatbot and not a human?
· How do we build safety and accountability into algorithmic incentives?
· How should disclosures about the use of AI in advertising work?
"AI is already here, and it’s not slowing down. The human effort can best be applied imagining what we want the future to look like, designing the right goals and guardrails, and learning to put AI to use in service of those," the GroupM report further said.
