AI to Revolutionize the Online Advertising Market

AI to Revolutionize the Online Advertising Market


With the majority of the global population turning out to be netizens, the demand for online advertising is expected to exhilarate going forward. As per Persistence Market Research – an ESOMAR-certified market research firm, the global online advertising market is expected to witness a CAGR of 14% in the subsequent decade.

Would you look through Dissection of Online Advertising Market?

The global online advertising market by ad format, spans social media advertising, search engine advertising (PPC), email marketing, display advertising, native advertising, and likewise. Platform-wise, it’s web/desktop advertising and mobile advertising. Vertical-wise, it’s healthcare & medical, automotive, retail & CPG, education, media & entertainment, BFSI, travel & hospitality, telecom, and likewise. Out of these, mobile advertising has been ruling the roost with the over-penetration of smartphones. Also, application-wise, media & entertainment hold the largest market share, followed by travel & hospitality. 

Content marketing and email marketing are being looked upon as long-term investments. They prove to be cost-effective as well as the ones giving organic followers. Another interesting fact regarding content marketing is that the companies that are found to post content 16-20 times/month end up generating traffic four times more than the ones who post less than that. 

Supremacy of Personalized Content

Personalized content has taken the driver’s seat in the year 2021 and would continue to do so even in the forecast period. In the other words, the consumers are into asking for relevant experiences from the brands they vie for. As such, the marketers have good opportunities in the form of social listening, on-site behavioral attributes, past purchase data for formulating a precise customer profile. Personalized content also helps in retention marketing efforts of the brand. The customer loyalty index shoots up then; thereby keeping the business afloat amidst fierce competition. 

The AI-oriented Turbulence Worldwide

The governments all over are drawn to Artificial Intelligence Technology due to the user-friendly deployment modes offered therein. Everyone – right from government authorities to NGOs are into allocation of budget for the pilot programs based on AI, which include digitizing government documents, traffic management, and public and road safety. Along these grounds, the government of the US, in August 2020, did announce allocation of over US$ 1 Bn for establishing research labs for quantum information science and AI. The government of Canada, in March 2021, did announce US$ 518 Mn for conducting 15 innovative AI research projects, that too, in healthcare sector. SAF (Singapore’s Armed Forces) are into investment in AI for building an unmanned system for battling. The government of China is working towards the initiative entitled “lead the world in AI by 2030”. It has over 900 patents pertaining to facial recognition at its discretion. The Indian government, through its program named “AIforAll” (through NITI Aayog), is looking forward for accelerating economic growth by the year 2035. 

Smart Marketing Automation: Machine Learning (ML) + Artificial Intelligence-assisted Platforms

The year 2021 will see marketers use ML in creation of content. Thus, ML and data will work in unison for boosting engagement efficiency. On a user clicking an ad, the behavioral data of underlying user would be absorbed by the ML systems and made use of in the future campaigns and also the touch-points with the progress of user (s) in their lifecycle (s). On the similar grounds, AI-assisted platforms would automate study of online activity, user behavior, and understanding language and speech patterns for creating hyper-personalized user personas. 

This is how online advertising would be amalgamated with ML and AI from 2021 onwards. Shedding further light on automation in advertising, video content is bound to be the epicenter of social media. As video advertising is expected to grow by more than 100%, various brands would be looking towards video as one of the effective social engagement tools. 

Cross-channel marketing strategy will be taking over the one wherein individual silos were being seen. This type of marketing is likely to have numerous layers of users’ action and engagement, and it would need data intelligence for identifying key insights to positively affect engagement and conversion. 

What do the Competitors say on this count?

The key players in online advertising market comprise Amazon, AOI Pro, Inc., Baidu, Inc., Facebook, Inc., Google LLC, Linkedin Corporation, Microsoft Corporation, Twitter, Adobe Inc., Verizon Media, IAB Europe, Novicom Marketing Group, Info Cubic Japan, and Gaie Inc. Linkedin ads are a known fact. The good news is that online advertising is amongst the most happening sectors as of now. Microsoft Corp. and Repsol, in March 2021, did renew the strategic collaboration emphasized on the acceleration of the latter’s digital transformation as well as energy transition. In other words, this collaboration aims at building new-fangled Artificial Intelligence technology-powered digital solutions. Also, Microsoft would be provided with renewable energy all across the Europe, inclusive of Spain. 

Geography-wise Impactful Online Advertising?

North America has been witnessing a double-digit CAGR with respect to online advertising since the last few years and the status quo is expected to remain unchanged in the upcoming period as well. This could be reasoned with the US being subject to emergence of novel formats and channels encompassing ITT content and podcasts, augmented and virtual reality, and smartphones. Research states that nearly 63% of the revenue through online advertising gets generated through this kind of pricing model. It further states that 35% is priced on the basis of cost-per-mille. Performance-based pricing model is also doing the rounds with growing rates of internet penetration. 

Coming to Europe, the UK is the torchbearer as it holds the distinction of being the biggest online advertising powerhouses across the globe. It has been observed that the UK’s expenditure on online advertising is a sizable portion of GDP. As far as South East Asia is concerned, Japan and India are poised to grow on a stupendous note in online advertising market with the upswinging of PPC coupled with the search advertising methods to drive traffic. This has also given rise to preference for influencer marketing. This is evident from the fact that more than 50% of Indians prefer online ads, so that they get reminded of products they are actually interested in. Not just that, over 60% of Indians go for online ads to lay their hands on new products, YouTube and Facebook are on the hitlist of Indians when it comes to online advertising. 

It would not be incorrect to infer that online advertising is being adopted at a rapid pace by the world at large, especially with its all-inclusive approach regarding availability of various products/gadgets/services. 


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