How AI will transform the advertising industry

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Credit: Andrea de Santis via Unsplash

The advertising industry is just beginning to see the impact of artificial intelligence (AI), according to Kate Scott-Dawkins, global director, business intelligence at GroupM.

The Next 10: Artificial Intelligence, a report by Scott-Hawkins and other GroupM contributors, forecasts the size of AI in advertising and documents the technologies and behaviors that will shape advertising over the next decade. .

GroupM estimates that AI will reach more than $370 billion this year, or about 45% of all advertising, and will likely inform the vast majority of media by 2032, reaching $1.3 trillion, or more. 90% of total advertising revenue. .

Scott-Dawkins” “While an exercise of this type is speculative in nature, this report is rooted in the insights of GroupM analysts, strategists and technologists who necessarily incorporate a long-term view when shaping the next era of media. where advertising works best for people.

“It produces estimates around the size of AI-generated advertising revenue globally taking into account how media channels are likely to evolve over the next decade due to application growth. AI, as well as emerging technologies such as edge computing and augmented reality.

“For the purposes of this document, we define AI-based advertising as any artificial intelligence used in the advertising process, from insight generation to activation and optimization.

“We include technologies and algorithms that fall under AI, such as machine learning, neural networks, computer vision, natural language processing (NLP), and intelligent process automation.”

groupm AI

Technology and behaviors shaping the next decade of advertising:

  • Decreased linear TV reach and less tolerance for irrelevant and disruptive ad modules.
  • The growth of audio-first devices with digital assistants (e.g. headphones and smart home speakers) means that voice search will overtake text search.
  • Data will most often be managed on the device and will increasingly be obfuscated or anonymized by AI and privacy services.

Scott-Dawkins: “One of the most significant implications of the growing use of AI is that marketers looking to leverage its ability to drive personalization will increasingly link products, experiences consumers and advertising.

“While it’s not certain that AI will be used in every campaign or business, here are some examples of how AI could transition from product to customer experience and advertising over the next decade” :

Sectors:

AUTOMOTIVE: Businesses will likely use generative AI and digital twin technology to optimize their product, customer and advertising experiences. By 2032, one could imagine that all the roads and highways in the world will be digitally mapped, and many of them will be equipped with sensors measuring wind, temperature or even the angle of the sun.

Cars and the routes they take will have digital twins – virtual models used to run simulations, analyze performance and suggest future improvements. These virtual models could be available in video games to raise awareness and enable virtual try-ons.

Video ad campaigns could feature the car or truck in a custom shade of green in that viewer’s city or town without having to film there. Even custom car specs, loan financing, and test drive scheduling could be done using interactive AI chatbots using real-time market dynamics and road conditions, as well as inventory numbers.

Once the vehicle is purchased, all consented driving data could feed into personalized maintenance and performance recommendations.

APPAREL: Brands could see huge opportunities as well as disruption from the use of computer vision, generative AI and machine learning algorithms. Branding will therefore be an important weapon against a vast gray market of counterfeits, as well as marketplaces of user-generated designs (UGDs) available for download and 3D printing or local manufacturing.

In this future AI-based environment, big brands could benefit from partnerships with content producers where products are dynamically inserted into TV, movies and video games, with an option for the consumer to ” buy the look”.

A dominant UGD marketplace (the YouTube of products) could house billions of shoe and jewelry designs, or anything that could be 3D printed from a variety of materials, including metal, wood, and plastic. , using AI and no-code development. .

This would democratize design and enable those with no knowledge of computer-aided design (CAD) to design and sell products. For example, a consumer could buy a digital file of sneakers from an up-and-coming designer, send it to their local retailer turned commercial 3D printer, and have the shoes delivered by drone the same day.

ENTERTAINMENT: In this imagined future, film and game studios will use generative AI to personalize storytelling.

Awareness campaigns for new IPs that run on streaming platforms and digital audio can feature different characters or storylines depending on the target audience with minimal extra time and effort.

Interactive AI-generated character avatars can be deployed in shows, social platforms, metaverse environments, or even real-world locations if a person wears AR glasses with a HUD.

Audiences and gamers, instead of buying a single download, could choose to play the movie or game multiple times, choosing new adventures, endings, or even main characters, all made possible by generative AI.

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