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 Savvy Pioneers Lead the Future of Work

Hybrid and fully remote work are inevitable in the Global Networked Economy where high-performance talent demands flexibility from employers. To enable these progressive work models, organizations are investing in a wide range of technologies to support more agile types of employment.  According to the latest worldwide market study by International Data Corporation (IDC), leading organizations will spend nearly $1 billion on the Future of Work (FoW) in 2023 -- that's an increase of 18.8 percent over 2022. Future of Work Market Development "Work models continue to evolve, but 37 percent of decision-makers in a recent global survey note that Remote and Hybrid work models will be an embedded part of accepted work practices, supported by a continued shift to the cloud, increasingly instrumented and interconnected physical workplaces, and intelligent digital workspaces," said Holly Muscolino, group vice president at IDC . According to the IDC assessment, organizations must mak

Human Resource Transformation Enabled by IT

Many senior executives are taking a proactive approach to digital business transformation in order to achieve their strategic goals. Delivering revenue growth and profitability is now imperative for every function, including Human Resources (HR). The top 3 priority HR technologies this year are skills management, learning experience platforms, and internal talent marketplaces, according to the latest worldwide market study by Gartner. "With a tumultuous global economy, HR technology leaders face a balancing act in 2023," said Sam Grinter, director at Gartner . "Leaders must anticipate greater levels of accountability and demand for measurable outcomes to justify new technology investments." HR Transformation Market Development Forty-four percent of HR leaders report driving better business outcomes is their number one strategic priority for HR technology transformation over the next three years. Growth in headcount and skills (26 percent) and cost optimization (17 p

Global EV Charging Revenue to Exceed $300B

During 2022, fuel prices increased very quickly, partly due to a number of macroeconomic reasons. In fact, the effects of the global COVID-19 pandemic are still impacting fuel prices, with many oil refineries having reduced capacity due to a prior fall in demand. Those significant events and other trends have created a demand for a growing variety of Electric Vehicles (EVs). While EVs have existed for decades, they really became a viable option for more consumers during the past five years. However, although EVs are suitable for some buyer needs, their usability is constrained by the current availability of battery charging infrastructure. EV Charging Market Development According to the latest worldwide market study by Juniper Research, revenue from electric vehicle charging will exceed $300 billion globally by 2027 -- that's up from $66 billion in 2023. Regardless, the Juniper analysis found that fragmentation in battery charging networks is restricting further EV adoption in some