Skip to main content

How AI will Transform Programmatic Digital Advertising

The ongoing commitment to spend more on advertising is primarily driven by legacy marketers. The majority of CMOs in these organizations have difficulty embracing progressive methods of market development, such as digital content marketing. They continue to explore new media but stay within their comfort zone.

As traditional advertisers witnessed the growth in smartphone use, they've shifted their digital ad spend -- such as display and search advertising -- to focus more on mobile devices. Most types of online advertising growth are now due to mobile internet use, which will overtake online desktop use.

Digital Advertising Market Development

According to the latest worldwide market study by Juniper Research, the total spend on digital advertising is forecast to reach $520 billion by 2023 -- that's rising from $294 billion in 2019.

That's a CAGR of 15 percent over the next 5 years; driven by the adoption of AI-based programmatic advertising to deliver highly targeted ads. Note, the overall digital advertising market includes online, mobile browsing, in-app, SMS, DOOH (Digital-Out-of-Home) and OTT (Over-the-Top) TV services.

The new market study found that Amazon's emerging digital advertising business, driven by its vast store of consumer retail data, will enable the company to capture 8 percent of global digital ad spend by 2023. Moreover, Amazon's ad growth is forecast to rise from just 3 percent in 2018.


The Juniper report predicts that Amazon’s advertising revenues will eventually reach $40 billion by 2023 -- that's a growth of 470 percent from its estimated advertising revenues in 2018.

Amazon will leverage its retail data and ongoing investment in machine learning technology to offer efficient targeting via its advertising platforms. That automation will attract users away from the established digital ad duopoly of Google and Facebook.

According to the study, Google’s advertising revenues will exceed $230 billion by 2023. Despite this, Juniper forecasts that the Google global market share of digital advertising spend will fall by 1 percent over the next 4 years due to the growth of competing platforms, including Amazon and Baidu.

Outlook for Digital Advertising Revenue Growth

Juniper analysts anticipate ad platforms will focus on increasing access to contextual advertising traffic data to maximize the efficiency of machine learning for targeting abilities. As a result of these efforts, 75 percent of global online and mobile ads are forecast to be delivered via AI-based programmatic advertising by 2023.

"Giving algorithms access to the vast amounts of data generated by advertising traffic, including purchasing habits, user buckets and geographical location, is critical to enabling advertisers to secure a return on their ad spend," said Sam Barker, senior analyst at Juniper Research.

Popular posts from this blog

Industrial Cloud Computing Apps Gain Momentum

In the manufacturing industry, cloud computing can help leaders improve their production efficiency by providing them with real-time data about their operations. This has gained the attention of the C-suite. Total forecast Industrial Cloud platform revenue in manufacturing will surpass $300 billion by 2033 with a CAGR of 22.57 percent, driven by solution providers enhancing platform interoperability while expanding partner ecosystems for application development. ABI Research found the cloud computing manufacturing market will grow over the next decade due to the adoption of new architectural frameworks that enhance data extraction and interoperability for manufacturers looking to maximize utility from their data. Industrial Cloud Computing Market Development "Historically, manufacturers have built out their infrastructure to include expensive data housing in the form of on-premises servers. The large initial upfront cost of purchasing, setting up, and maintaining these servers is

Demand for Quantum Computing as a Service

The enterprise demand for quantum computing is still in its early stages, growing slowly. As the technology becomes more usable, we may see demand evolve beyond scientific applications. The global quantum computing market is forecast to grow from $1.1 billion in 2022 to $7.6 billion in 2027, according to the latest worldwide market study by International Data Corporation (IDC). That's a five-year compound annual growth rate (CAGR) of 48.1 percent. The forecast includes base Quantum Computing as a Service, as well as enabling and adjacent Quantum Computing as a Service. However, this updated forecast is considerably lower than IDC's previous quantum computing forecast, which was published in 2021, due to lower demand globally. Quantum Computing Market Development In the interim, customer spend for quantum computing has been negatively impacted by several factors, including: slower than expected advances in quantum hardware development, which have delayed potential return on inve

Contact Center as a Service Gains AI Benefits

Enterprise leaders with large customer care organizations are exploring Artificial Intelligence (AI) applications to improve their online customer experience, increase operational efficiency, and reduce costs to improve profitability. Trained AI can be used to automate tasks, such as answering routine questions, freeing up contact center agents to focus on more complex inquiries. AI can also be applied to personalize the customer experience by recommending new offerings. Additionally, AI can be deployed to analyze vast amounts of existing customer data to identify support trends and patterns, which can be used to improve the overall customer experience. Customer Care AI Market Development Worldwide Contact Center (CC) and Conversational AI, including virtual assistant end-user spending is projected to total $18.6 billion in 2023 -- that's an increase of 16.2 percent from 2022, according to the latest market study by Gartner. "Near-term investment growth rates for CC and CC Con