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

How Edge Computing and AI Applications Drive IoT

The global pandemic has accelerated the adoption of emerging technologies, including edge computing and TinyML. As more CIOs and CTOs seek ways to capture and process data at the edge of their enterprise IT network, the demand has fueled investment for Internet of Things (IoT) applications. According to the latest worldwide market study by ABI Research, the global edge Artificial Intelligence (AI), Software-as-a-Service (SaaS), and turnkey service market will grow at a CAGR of 46 percent between 2020 and 2025 to reach $7.2 billion. This is 25 percent of the global edge AI market, which is estimated to be $28 billion by 2025. The market is comprised of edge AI chipsets, SaaS, and turnkey services, as well as professional services. As the benefits of edge AI becomes more obvious, enterprises are searching for edge AI solutions that offer low latency and are fully secured to assist them with data-based analysis or decision-making. Edge Artificial Intelligence Market Development "The

How the COVID-19 Pandemic Advanced Telehealth Adoption

The global COVID-19 pandemic has accelerated digital transformation across many industries. As an example, consider the healthcare sector. Some routine medical situations can be diagnosed and resolved online. While the trend was already in motion long before the pandemic arrived, the adoption of telehealth increased rapidly in 2020. Around the world, many governments responded to the disruption and inaccessibility of healthcare facilities by loosening previous regulations and restrictions on the practice of telemedicine apps, and teleconsultations. This decision resulted in the mass adoption of these medical services among patients and providers. According to the latest market study by Juniper Research, telemedicine will save the healthcare industry $21 billion in costs by 2025 -- that's rising from an estimated $11 billion in 2021. This increased app usage represents an anticipated growth rate of over 80 percent in the next four years. Telehealth Services Market Development The co

Hyper-automation Propels Superior Business Process Redesign

When the world was disrupted by a global pandemic during 2020, many CEOs and their board of directors were consumed by reacting to immediate problems. Meanwhile, a few forwarding-thinking enterprise leaders also paused to invest in accelerating their prescient digital transformation agenda. What enables executives to envision an opportunity while others see only challenges? Strategic foresight, and a willingness to embrace the apparent changes that are transforming the legacy status quo. During this period of uncertainty, hyper-automation investment has gained new momentum. Hyperautomation is the application of advanced technologies that augment humans by helping to streamline processes in new ways that are significantly more impactful than the legacy approach. Hyperautomation Market Development The global market for technology that enables hyperautomation will reach $596.6 billion in 2022, according to the latest worldwide market study by Gartner. This is up from $481.6 billion in 202