The Rise of the Machines - AI and Marketing

Published: June 12, 2023

min read

GroupM, in its 2023 Global Mid-Year Forecast predicts a 5.9% growth in the international ad industry, despite the pandemic and concerns about inflation. And one of the biggest things to hit the advertising marketplace this year is artificial intelligence and its growth. According to the report, AI will touch at least half of all advertising revenue in some way and it will disrupt more than just media optimization this year.

GroupM expects a ‘superboom’ of AI-backed start-ups in the next two to five years, and its forecasts calls for appropriate safety measures to be put in place as the use of AI increases.

According to the report –

  • Retail media has become the third-fastest growing advertising channel in 2023, behind digital out-of-home and connected TV. It is expected to grow 9.9% to reach $125.7 billion in 2023, and is expected to surpass TV revenue by 2028
  • The primary advertising channel is still Digital and is expected to grow by 8.4% in 2023 and reach 74.4% of total ad revenue by 2028.
  • Connected TV is seeing a growth of 13.2% in 2023 and is expected to add 10.4% in ad revenue between 2023 and 2028 on a compound annual basis.
  • Americans spent 21% of the time watching sports on linear TV in the US – up from 15% four years ago.
  • Traditional out-of-home is expected to grow 26.1% in 2023, boosted by digial

GroupM sees the whole industry as being at an “inflection point” – where the trends from the pandemic and cooling, digital is leveling off and other levers of growth are maturing. GroupM has said that the underlying growth forecast over the next five years will be in the mid-single-digit range. Some of the factors that could change things exponentially include AI – which GroupM expects to inform or impact at least half the advertising revenue by the end of the year!

The Power of AI

AI truly has the power to revolutionize everything it touches. It hasn’t left anything un-transformed in its wake, thus far.

That AI should have a profound and disruptive touch on advertising is something that goes without saying. Its influence is already felt on various aspects of the process.

And what we have seen so far is just the tip of the iceberg.

We have seen AI opening up possibilities for better quality and faster ad campaigns that can be produced at lower costs. AI can be used for market research too, making sure each message resonates with its intended audience. it can rapidly sift through mountains of data and segment and target with greater precision than ever before.

Brands, marketers and advertisers are now able to customize campaigns based on a whole range of factors – taking into account things like the demographic of the audience, the geographical location and so much more. All these criteria are used to automatically bid for ads across various exchanges and ad networks that are powered by AI enabling brands to reach the right people and at the right time. Programmatic has risen to a whole different level.

AI can crunch humungous amounts of data in nano-seconds. AI gives marketers deeper, real, actionable insights than ever before. It can sift through piles of customer data and let marketers know what messaging will resonate the most with specific groups of people. It will also help marketers find similar and previously unidentified target groups for them to engage with. Marketers can find out what strategy works and what doesn’t – and it can automatically optimize campaigns for them.

It optimizes the bidding process, getting brands the most bang for their buck - maximum reach with minimal effort, time, and money! Personalization of campaigns and ads is a breeze with AI. It analyzes customer data – everything from social media to shopping behavior and everything in between, based on which, it customizes and personalizes messaging so it resonates with EACH customer.

Of course there is a flip side – less control. Less transparency.

But the positives are plenty – and it is no surprise that marketing dollars are headed the AI way. It is surely the way to staying ahead in a changing, turbulent and highly-competitive landscape and getting the most out of digital advertising investments.


Pete Johnson

Pete is a MarTech expert guru with a knack for getting diverse MarTech solutions work for brands. He has a wealth of experience in working with a plethora of MarTech platforms that dive Personalized Omnichannel Experiences. When he's not at work, you can find him playing basketball or listening to jazz.


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