The AI in advertising market size has grown exponentially in recent years. It will grow from $11.17 billion in 2025 to $14.12 billion in 2026 at a compound annual growth rate (CAGR) of 26.4%. The growth in the historic period can be attributed to growth of digital advertising spend, expansion of social media platforms, increasing availability of consumer data, adoption of automated ad buying, rising focus on marketing roi optimization.
The AI in advertising market size is expected to see exponential growth in the next few years. It will grow to $36.34 billion in 2030 at a compound annual growth rate (CAGR) of 26.7%. The growth in the forecast period can be attributed to increasing privacy-compliant advertising solutions, growing adoption of AI-driven creative optimization, expansion of omnichannel advertising strategies, rising investments in marketing automation, increasing demand for real-time campaign intelligence. Major trends in the forecast period include increasing use of programmatic advertising platforms, rising adoption of predictive audience analytics, growing demand for personalized advertising campaigns, expansion of real-time bidding optimization, enhanced focus on performance attribution models.
Download Your Free Report Sample:
https://www.thebusinessresearchcompany.com/sample.aspx?id=33012&type=smp&utm_source=dev&utm_medium=Paid&utm_campaign=Jul_PR
Which Drivers Are Accelerating Growth In The AI In Advertising Market?
The growing demand for personalized customer experiences is expected to propel the growth of the artificial intelligence (AI) in advertising market going forward. Personalized customer experiences refer to tailoring products, services, and interactions to meet the individual preferences, needs, and behaviors of each customer, enhancing engagement and satisfaction. The growing demand for personalized customer experiences is primarily driven by rising customer expectations for services and interactions that are tailored to their individual needs and preferences. Artificial intelligence in advertising enhances personalized customer experiences by analyzing user behavior, preferences, and interactions to deliver highly targeted and relevant content in real time. For instance, in February 2025, according to SAP SE, a Germany-based software company, in 2024, 64% of U.S. shoppers reported that AI has improved their retail experiences, marking a 25% increase in positive sentiment compared to 2023. Furthermore, in January 2023, according to a survey conducted on 5,000 consumers by Salesforce Inc., a US-based software company, 81% of the consumers surveyed planned to reassess their budgets over the next 12 months in search of more personalized experiences. In the hospitality industry, 72% stated they would remain loyal to companies that provide faster service, and 65% said they would stay loyal to those offering more personalized experiences. Therefore, the growing demand for personalized customer experiences is driving the growth of the artificial intelligence (AI) in advertising market.
Who Are The Most Influential Companies In The AI In Advertising Market?
Major companies operating in the AI in advertising market are Google LLC, Microsoft Corporation, Meta Platforms Inc., Alibaba Group Holding Limited, Salesforce Inc., Adobe Inc., TikTok Pte. Ltd., Nielsen Holdings plc, AppLovin Corporation, Criteo S.A., The Trade Desk Inc., Zeta Global Corp., DoubleVerify Holdings Inc., StackAdapt Inc., Integral Ad Science Inc., Nexxen Ltd., Adform A/S, Quantcast Corporation, Persado Inc., Jasper AI Inc., VidMob Inc.
What Market Trends Should Companies Track In The AI In Advertising Market?
Major companies operating in the artificial intelligence (AI) in advertising market are focusing on developing innovative solutions, such as programmatic ad optimization, to enhance campaign efficiency, personalization, and ROI. Programmatic ad optimization is the use of AI and automated systems to buy, place, and continuously adjust digital ads in real time to reach the most relevant audiences and maximize campaign performance. For instance, in June 2025 Amazon.com Inc. a US-based technology company, launched an upgraded Video Generator, an AI-powered tool designed to create realistic, high-motion videos that showcase products in action, helping shoppers gain a clearer understanding of items before purchase. The tool enables advertisers to rapidly produce professional-quality video ads without the need for extensive production resources, significantly cutting both time and cost. Utilizing generative AI, it can transform static images or existing media into dynamic video content tailored for various platforms and audiences. By enhancing visual engagement, the enhanced Video Generator helps increase click-through rates, conversions, and overall advertising ROI for brands on Amazon’s platform.
How Are Different Segments Organized Within The AI In Advertising Market?
The AI in advertising market covered in this report is segmented –
1) By Component: Software; Services
2) By Deployment Mode: Cloud-Based; On-Premises
3) By Organization Size: Large Enterprises; Small And Medium-Sized Enterprises
4) By Application: Targeted Advertising; Content Creation And Optimization; Advertising Technology (AD) Campaign Management; Performance Analytics; Other Applications
5) By End-User Industry: Retail And E-Commerce; Banking, Financial Services, And Insurance (BFSI); Media And Entertainment; Information Technology (IT) And Telecommunications; Healthcare; Other End-Use Industries
Subsegments:
1) By Software: Programmatic Advertising Software; Audience Targeting And Segmentation Software; Content Creation And Optimization Software; Campaign Management And Automation Software; Performance Analytics And Attribution Software
2) By Services: Advertising Strategy And Consulting Services; System Integration And Deployment Services; Managed Campaign Optimization Services; Data Analytics And Insight Services; Training And Technical Support Services
Explore the Complete AI In Advertising Market Report:
https://www.thebusinessresearchcompany.com/report/ai-in-advertising-market-report?utm_source=FreePR&utm_medium=Paid&utm_campaign=Jul_PR
Which Regions Are Projected To Grow At The Highest Rate In The AI In Advertising Market?
North America was the largest region in the AI in advertising market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the AI in advertising market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Contact Us:
The Business Research Company: https://thebusinessresearchcompany.com/
Americas +1 310-496-7795
Asia +44 7882 955267 & +91 8897263534
Europe +44 7882 955267
Email: marketing@tbrc.info
Follow Us On:
LinkedIn: https://in.linkedin.com/company/the-business-research-company
Top comments (0)