GroupM experts shows that in just ten years – until 2032 – Artificial Intelligence-supported advertising could reach $ 1.3 trillion, or more than 90% of total advertising investment. Artificial Intelligence-based marketing currently accounts for $ 370 billion, or 45% of global advertising, and is growing.
Using Artificial Intelligence (AI) is not a distant future scenario, something like Ready Player One, Terminator or Wall-e. AI already exists in our current reality and is involved in almost all forms of advertising today. IT will soon be even more involved, according to the report by Kate Scott-Dawkins, GroupM’s Global Director of Business Intelligence, and her team. Download and read the full report here.
In most current cases, Artificial Intelligence is digital, especially Search. In the future, experts expect OOH and TV media to become significantly more digitalized and thus to rely more on AI. Artificial intelligence in the advertising of the future will make personalization possible and effective. Messages and targeting will be personalized in a way that respects users’ ownership of personal data.
Consumer expectations will also change. Relevant, personalized, uninterrupted marketing messages that simplify day-to-day decisions will be appreciated. Of course, these expectations will not always be met. The brands and platforms that will be able to meet them, will enjoy an advantage in terms of consumer attention, preference and loyalty.
By using AI it will be not only possible, but also effective to provide each individual with a personalized message, offer or even a personalized product. In some cases, power will lead to “closed ecosystems”, where all consumer data can be aggregated and analyzed by companies. In other cases, consumers will be in control and will be able to remove messages and suggestions of products that do not interest them. They may even have the option to modify the products themselves and adapt them to their own needs.
In this context, Victor Rotariu, Head of Strategy & Insights at GroupM Romania, has some recommendations that companies should apply now, in order to obtain the benefits and avoid the risks associated with the transformation of advertising through Artificial Intelligence:
• Use AI-based media planning tools to adapt to changes in media behavior. Platforms such as GroupM Maximize will help organizations’ marketing departments get the best results possible.
• Rethinking objectives, taking into account the decrease in TV reach and increased addressability. Marketing message evaluation: is it the same for all consumers or is it individualized?
• Preparing for organizational change. Artificial intelligence can mean more opportunities in creation, production, but also in media planning and execution.
• Extending the perspective beyond the borders of the activity sector. Future partnerships and business models will transcend industry boundaries as buying behavior is amplified by Artificial Intelligence
• Evaluate how the company can contribute to the creation of responsible and ethical AI, taking into account security and accountability in algorithms, transparency of Artificial Intelligence decisions.
GroupM is the world’s leading media investment company responsible for more than $50B in annual media investment through agencies Mindshare, MediaCom, Wavemaker, Essence and mSix&Partners, as well as the outcomes-driven programmatic audience company, Xaxis. GroupM’s portfolio includes Data & Technology (Choreograph), Investment and Services, all united in the vision to shape the next era of media where advertising works better for people. By leveraging all the benefits of scale, the company innovates, differentiates and generates sustained value for our clients wherever they do business.