AI’s tentacles will impact half of all advertising revenue by 2023 – GroupM
By Felicia Nwosu
GroupM has predicted that Artificial Intelligence (AI’s) tentacles will impact at least half of all advertising dollars by the end of the year 2023. This was disclosed by Kate Scott-Dawkins, Global President of GroupM Business Intelligence.
The prediction is against the premise that retail media, which is now seen as part of ad revenue, is also estimated to grow 9.9 percent to reach USD 125.7 billion in 2023, and will exceed TV as well as CTV revenue in 2028.
“Artificial intelligence is likely to inform or touch in some way, at least half of all advertising revenue by the end of 2023,” GroupM said.
The WPP-owned agency expects AI will do more than disrupt how marketers optimize their media campaigns. “It will also usher in a wave of AI-backed startups during the next two to five years,” the agency added..
Inside Radio in its report stated that the pervasive impact of AI in the ad world means brands will be well-served by having proactive guidelines and the right partners to navigate the changes so that choices in budget allocation and the use of AI are made intentionally with the long-term health of the business in mind.
The Business Intelligence agency in its 2023 Global Mid-Year Projection, charged advertising industry stakeholders to use AI conscientiously and with appropriate safety measures in place.
“Generative AI is introducing some existential and legal questions to the channel,” the GroupM report said, adding. “AI-generated DJs and hosts lead to questions around automation and consumer trust, while AI-generated music will force the industry to address copyright laws in the age of artificial intelligence.”
Again, the platform also expressed worry over the rising concern about AI among advertisers on whether digital advertising actually delivers on what Google, Facebook, and other tech giants claim it does.
Advertisers engage in a high-stakes game called ‘Trust the Robot,’ wherein they relinquish their valuable data and control over how their campaign goals should be achieved to AI systems. The have, therefore, expressed reservations about handing over their parameters, data, and advertising assets to the digital giants, whose algorithms then take control of the advertising optimization process.
Other industry leaders such as Jeremy Hull, Chief Product Officer at ad agency Brainlabs have also indicated fear historically to a large extent, over trust issues which they described as the core challenge Google has faced with their predictive AI tools.
“At Google Marketing Live they announced several welcome features that increase transparency not as much as advertisers have asked for, but still welcome visibility. Google is walking a tricky tightrope,” the GroupM intelligence said.
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