AI is going to totally revolutionize advertising market

By Fred Berg

The emergence of AI is disrupting and shaking up many industries and driving industry consolidation, including advertising market.

Ad market is under structural pressure entailed by AI right now. And AI is going to make all the expertise available to everybody at extremely low cost. Major threat is from emerging generative AI tools that can be used to materialize pieces of content at rapid pace. The past couple of years has seen the rise of a number of AI image generators, including OpenAI’s DALL-E, Google’s Veo and Midjourney.

AI would impact everything from creating briefs and media plans to optimizing campaigns in ad business, particularly on creative parts which are under structural pressure. A report from Forrester released in June last year showed that more than 60% of U.S. ad agencies are already making use of generative AI, with a further 31% saying they’re exploring use cases for the technology.

No matter the bellwether, such as British advertising group WPP, French advertising giant Publicis Groupe, or small ad company, all feel the big impact of AI. AI image and video generation tools are speeding up content production drastically, while automated messaging systems can achieve “personalization at scale like never before. In another words, ad market is undergoing a huge transformation due to the disruptive effect of AI.

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