Enjoy complimentary customisation on priority with our Enterprise License!
The artificial intelligence market size is forecast to increase by USD 41.02 billion at a CAGR of 30.9% between 2023 and 2028. Artificial Intelligence (AI) is revolutionizing the marketing industry, with the market projected to grow significantly due to several key trends and factors. The rise in the adoption of cloud-based applications and services is a major driver, enabling businesses to access advanced AI capabilities on a subscription basis. Increasing digitalization and internet penetration are also fueling market growth, as more consumers engage with brands online. However, the lack of skilled professionals poses a significant challenge, as organizations struggle to find and retain talent with the necessary expertise to implement and optimize AI marketing solutions effectively. Despite this, the benefits of AI in marketing, including personalized customer experiences, improved targeting, and increased efficiency, make it an essential investment for businesses seeking to stay competitive in today's digital landscape.
Artificial Intelligence (AI) is revolutionizing the marketing industry by offering new opportunities for businesses to enhance their marketing strategies. AI-based technology is being used to analyze consumer behavior, filter data, and create personalized marketing campaigns. In marketing, AI's efficacy lies in its ability to provide real-time data analysis, predictive analytics, and automation of repetitive tasks. Social media marketing is a significant area where AI is making a mark. AI-powered chatbots offer instant responses to customer queries, improving on-site engagement and conversion rates. Predictive analytics helps in understanding demographic trends and potential patients, enabling businesses to tailor their marketing campaigns accordingly.
AI is also making a significant impact in the healthcare industry marketing. AI-powered tools like Youper use emotional health and psychological techniques to offer personalized conversations to patients, improving their overall patient experience. Product-driven marketing strategies are being replaced by customer-centric strategies, with AI being used to analyze customer preferences and tailor marketing messages accordingly. In conclusion, AI is transforming marketing by offering businesses the ability to analyze consumer behavior, filter data, and create personalized marketing campaigns in real-time. Its use in predictive analytics, social media marketing, and healthcare industry marketing is expected to drive marketing expenditure in the coming years.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The on-premises segment is estimated to witness significant growth during the forecast period. Artificial intelligence (AI) and AI-based technology are revolutionizing marketing strategies by enhancing efficacy and efficiency in various aspects. AI marketing plans incorporate predictive analytics for consumer behavior analysis, media buy optimization, and campaign data evaluation. AI skills such as machine learning algorithms, natural language processing, sentiment analysis, and automation are essential for personalized digital communication. AI technology streamlines keyword research for Search Engine Marketing and Social Media Advertising. Virtual assistants and chatbots offer customer support services, while sales & marketing automation ensures seamless commercial transactions. AI-driven content curation and campaign management enable market expansion and effective media buy decisions.
Moreover, AI-based technology aids in data filtering and analyzing large volumes of data, providing valuable insights for marketing strategies. Predictive analytics and sentiment analysis are crucial for understanding consumer preferences and tailoring campaigns accordingly. AI-driven virtual assistance and chatbots improve customer relationship services, ensuring a positive experience. In summary, AI technology is transforming marketing by offering personalized, data-driven strategies, enhancing efficiency, and improving customer engagement through virtual assistance, chatbots, and predictive analytics. AI skills and automation are essential for effective digital communication, content curation, and campaign management, ultimately leading to increased marketing expenditure and business growth.
Get a glance at the market share of various segments Request Free Sample
The on-premises segment was valued at USD 5.46 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
For more insights on the market share of various regions Request Free Sample
Artificial Intelligence (AI) is revolutionizing marketing strategies, with product-driven and customer-centric approaches increasingly adopting this technology. AI enables the collection, analysis, interpretation, and automated decision-making from vast amounts of customer data, including purchase history, browsing behavior, and social media interactions. This data is utilized to enhance customer experience, boost order repetition, and foster customer loyalty. Business development benefits from AI marketing software through targeted ad copy, images, and videos tailored to advertiser's objectives and the target market. Component Insights indicates that the services segment, including customer service and support, will see significant growth due to customized recommendations based on AI analysis.
Moreover, IoT-generated data further expands the potential for AI marketing, allowing for personalized ad experiences and ad targeting through smartphone assistants, high-speed internet, social networks, and online transactions. In North America, the region with the fastest-growing AI marketing market, government investments in AI technology and a large industrial base contribute to its significance. US government entities spent USD1.9 billion on AI-related service commitments between 2018 and 2020, representing a 70% increase over the previous three years.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Rise in adoption of cloud-based applications and services is the key driver of the market. The digital landscape has witnessed significant technological development, particularly in the realm of interconnected devices and AI-driven applications. With the increasing use of social media and e-commerce platforms, user behavior and preferences play a pivotal role in shaping marketing strategies. Numerous technology firms, including Meta Platforms, Inc, have integrated AI into their offerings to enhance user experiences. For instance, content recommendation engines power social media updates and blog post suggestions based on user behavior. Moreover, AI is revolutionizing human-computer interactions through digital avatars and voice assistants like Google Assistant. These technologies employ machine learning algorithms for human language understanding, machine translation, question answering, and text generation.
Moreover, in the advertising sector, AI-powered marketing solutions are transforming the online retail industry by providing personalized content recommendations and targeted advertising based on user behavior and preferences. The use of computervision, such as DINO and vision transformers (Vit), further enhances the ability to analyze user data and deliver customized content. Overall, AI is a game-changer in marketing, enabling more effective and personalized interactions with consumers.
Increasing digitalization and internet penetration is the upcoming trend in the market. The digitalization trend is driving the global economy forward by collecting, organizing, and enhancing data to facilitate automation and innovation. With the increasing penetration of the internet, there are now over 5 billion users worldwide, representing 63% of the global population. This vast user base generates a wealth of data on preferences, interactions, and behavior, which is being harnessed by technology firms to develop advanced AI marketing solutions. Interconnected devices, such as Nespresso coffee machines and content recommendation engines, analyze user behavior to deliver personalized content recommendations, including blog posts, social media updates, and digital avatars. AI applications in advertising include voice assistants like Google Assistant, which use human language processing, machine translation, and question answering to understand and respond to user queries.
Additionally, computervision technologies like Meta Platforms, Inc's DINO and vision transformers (Vit) are revolutionizing digital marketing by enabling advanced image recognition and analysis. These developments are transforming the e-commerce and online retail sectors, making AI-powered marketing solutions an essential tool for businesses seeking to engage with their customers effectively in the digital age.
Lack of skilled professionals is a key challenge affecting market growth. Artificial Intelligence (AI) is revolutionizing marketing by enabling interconnected devices to understand user preferences and facilitate personalized interactions. Nespresso coffee machines, for instance, use AI to recommend beverages based on user behavior. Content recommendation engines, such as those used on blogs and social media platforms, employ AI to suggest relevant updates based on user engagement. Digital avatars and voice assistants like Google Assistant use AI for human-computer interactions, translating human language, answering questions, and generating text. Companies like Meta Platforms, Inc, and technology firms are at the forefront of this technological development, investing in AI-powered marketing solutions for digitalization and e-commerce.
However, the implementation of AI in marketing requires a deep understanding of its intricacies, including computervision, machine translation, and text generation. Despite the benefits, the lack of expertise and substantial investment required may deter some end-users, particularly in the online retail sectors.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Accenture Plc - The company offers Solutions.AI for marketing to improve MROI with AI and data-driven marketing capabilities.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Artificial Intelligence (AI) is revolutionizing marketing strategies by introducing new levels of efficacy and efficiency. AI-based technology is transforming various marketing aspects, including data filtering, sentiment analysis, predictive analytics, and customer relationship services. AI's ability to learn from data and adapt to consumer behavior makes it an invaluable tool for marketing expenditure. In social media marketing, AI powers virtual assistants and chatbots, enabling personalized digital communication with consumers. AI marketing plans use machine learning algorithms to analyze campaign data, optimize advertisements, and improve media buy decisions. AI skills like natural language processing are essential for effective content curation and search engine marketing.
Moreover, AI's impact on marketing extends to sales & marketing automation and analytics platforms. Predictive analytics helps businesses anticipate consumer trends and preferences, enabling them to tailor their strategies accordingly. AI also enhances customer support services by providing instant, intelligent responses to queries. AI-driven marketing strategies offer numerous benefits, including automation, personalization, and improved efficiency. However, implementing AI requires adequate training and investment in software and services. As the market for AI in marketing continues to expand, businesses must stay informed and adapt to remain competitive.
Market Scope |
|
Report Coverage |
Details |
Page number |
143 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 30.9% |
Market growth 2024-2028 |
USD 4.10 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
24.84 |
Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 36% |
Key countries |
US, China, UK, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accenture Plc, Adobe Inc., Alphabet Inc., Amazon.com Inc., Appier Group Inc., CognitiveScale, GUMGUM Inc., InsideSales, Intel Corp., International Business Machines Corp., Meta Platforms Inc., Microsoft Corp., NVIDIA Corp., Oculus360, Oracle Corp., Persado Holdings plc, Salesforce Inc., Samsung Electronics Co. Ltd., and SAP SE |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.