The global generative AI in digital marketing market size was USD 1.5 Billion in 2022 and is projected to reach USD 14.8 Billion by 2031, expanding at a CAGR of 29% during the forecast period, 2023–2031. The market growth is attributed to the rising development & launch of advanced artificial intelligence tools and their surging adoption in digital marketing practices.
Advanced features of generative AI including algorithmic support and machine learning (ML) are expected to propel its demand in digital marketing. These AI tools are being highly used in the digital marketing industry for producing innovative content, improving marketing performance by gaining valuable insights, and optimizing advertising campaigns.
To access these benefits digital marketers in various countries are increasingly adopting generative AI tools, such as ChatGPT, Jasper, and others,for their organizational campaign work, which is boosting the growth of the market. For instance,
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According to a report published in 2023, around 73% of marketing businesses in the US use generative AI for their business and advertisement work. AI tools, including chatbots, are the most popularly used tools among regional marketing professionals.
Generative AI involves adapting to pre-determined algorithms provided by the user and providing outputs in the form of text content, images, and videos. These tool's efficiency depends on the training data that is provided to them. In these ways, the collaboration of digital marketers with generative AI technology is projected to augment the growth of the market.
The market report finds that the COVID-19 pandemic opened up growth opportunities for global generative AI in the digital marketing market, owing to the rising inclination of businesses towards digital channels. Due to the reduced physical interaction between businesses and customers during the pandemic, many organizations opted for advanced digital techniques, to run their businesses smoothly.
Among these techniques, generative AI was highly adopted for leveraging the data sources of the businesses to give creative & engaging outputs, innovative growth strategies, and improve customer interaction.
Generative AI In Digital Marketing Market Dynamics
Major Drivers
Rising generation of customer data from social media platforms, digital channels, and e-commerce sites increases the demand for generative AI in digital marketing. It helps companies to gain key insights from vast data, by analyzing and interpreting data and empowering them to create more effective marketing campaigns.
Numerous companies intend to leverage large data available to them for improving their advertising and marketing campaigns, which subsequently boosts their business profits. These factors are likely to propel the market during the forecast period.
Growing use of generative AI technology in personalized content creationis likely to drive the market during the forecast period. This technology is useful in seamlessly ideating and creating content that is highly engaging with potential customers. Such personalized content helps in increasing business conversion rates through digital marketing campaigns, which further boosts the market. For instance,
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According to a survey study by the National Bureau of Economic Research, published in April 2023, the productivity of users of generative AI platforms, such as ChatGPT, is likely to boost by an average of 14%. The survey included 5,179 customer support agents. It was found that the AI tools were highly beneficial to novice and low-skilled support agents.
Increasing adoption of advanced Artificial Intelligence to reduce the time required for creating content is propelling the market. This technology reduces a lot of time that is required to produce engaging and creative content, as it is programmed with sophisticated algorithms, which further fuels market growth.
Existing Restraints
Increasing concerns about data privacy and security among online businesses are expected to restrain the market. Online businesses have access to large customer data volumes, increasing their responsibility to protect customer data to maintain customer trust.
Such complex scenarios impede the demand for generative AI among organizations, which further hamper the market. In addition, the high cost of implementing advanced AI technology in organizations with limited financial systems further slows down market growth.
Emerging Opportunities
Innovative technologies such as natural language and voice processing are expected to create novel opportunities in the market. This technology helps in effective customer interactions, transactions, queries, and recommendations, which benefits businesses. These benefits are likely to increase the future demand for generative AI technology, and thus result in market expansion.
Consistent technological advancements such as computer vision, natural language processing, and deep learning are anticipated to create lucrative opportunities in the market. These advancements help businesses to update with emerging future trends in both AI and digital marketing industries.
Scope of Generative AI In Digital Marketing Market Report
The report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Generative AI In Digital Marketing Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Application (Personalization, Content Generation, Social Media Management, Advertising Optimization, Predictive Analysis, and Others) and Channel (Search Engine Marketing, Email Marketing, Social Media Marketing, Mobile Marketing, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, MarketTrends, and Revenue Forecast
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Key Players Covered in the Report
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IBM Corporation; Acquia, Inc.; Google; HubSpot, Inc.; Adobe; OpenAI; Salesforce, Inc.; Synthesia; DataRobot, Inc.; and NVIDIA Corporation
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Generative AI In Digital Marketing Market Segment Insights
Application Segment Analysis
Based on application, the generative AI in digital marketing market is divided into personalization, content generation, social media management, advertising optimization, predictive analysis, and others. The content generation segment is expected to expand at a major growth rate during the projection period, attributed to the high demand for interactive and innovative content for different advertising purposes.
Content generation using generative AI is majorly used for creating visual assets for company websites & platforms, written content, and video content, which helps in segment expansion. For instance,
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According to a survey performed in November 2022, by Aira, a visual interpreting solution provider and productivity tool, around 57% of people use generative AI tools for generating blogs, articles, and other long-form content. However, over 58% of people use advanced technology for optimizing the existing content on their websites and online portfolios.
The personalization segment is anticipated to account for a significant market share during the forecast period, as an increasing number of organizations are using generative AI for offering personalized content to their consumers, according to their data and online purchasing behavior. In addition, enhanced customer engagement leads to increased product or service sales, which benefits the companies and in turn, propels the segment.
Channel Segment Analysis
On the basis of channel, the global market is segregated into search engine marketing, email marketing, social media marketing, mobile marketing, and others. The search engine marketing segment is projected to register a considerable CAGR during the forecast period, due to the surging use of generative AI in improving search engine marketing factors such as headlines, ad copy, bid engagement, and landing pages.
Rising awareness about the generative AI benefits such as website performance improvement and high conversion rates propels the segment. These advantages are expected to be profitable for the company websites, as they are efficient to target relevant keywords, enhancing online visibility, and driving potential traffic to intended landing pages.
The social media marketing segment accounts for a significant market share, as generative AI helps in creating content for specific social media platforms such as Twitter and Instagram. The advanced AI technology also helps in generating hashtags and other related metadata that boost the visibility of the posts to a large pool of viewers, and increase brand awareness. Additionally, the rising trend of using generative AI for improved customer experience on social media further propels the segment.
Regional Outlook
In terms of region, the global generative AI in digital marketing market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the forecast period, owing to the increasing number of companies adopting generative AI for the profitability of their businesses.
Many companies in the region are highly adaptive to advanced AI tools such as OpenAI’s ChatGPT, Google’s Bard, and several others, which propels the regional market. In addition, the availability of advanced technological support and infrastructure in the countries such as the US and Canada is a major reason for boosting the market in the region.
The market in Europe is anticipated to expand at a rapid pace during the forecast period, due to the presence of established digital marketing companies in the countries such as Germany, the UK, and France. Additionally, advanced data privacy regulations in the region ensure the safe usage of generative AI for ethical business practices. These data safety factors increase the demand for generative AI among organizations, thus further driving the regional market. For instance,
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On 11 May 2023, the European Parliament announced EU AI Act to regulate the use of AI technology in the region. The act aims to ensure data safety, transparency, and traceability of data for preventing harmful outcomes of data breaches. Moreover, this act is the first AI regulation act implemented by any region across the world.
Segments
The generative AI in digital marketing market has been segmented on the basis of
Application
- Personalization
- Content Generation
- Social Media Management
- Advertising Optimization
- Predictive Analysis
- Others
Channel
- Search Engine Marketing
- Email Marketing
- Social Media Marketing
- Mobile Marketing
- Others
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- IBM Corporation
- Acquia, Inc.
- Google
- HubSpot, Inc.
- Adobe
- OpenAI
- Salesforce, Inc.
- Synthesia
- DataRobot, Inc.
- NVIDIA Corporation
Competitive Landscape
Key players operating in the global generative AI in digital marketing market include IBM Corporation; Acquia, Inc.; Google; HubSpot, Inc.; Adobe; OpenAI; Salesforce, Inc.; Synthesia; DataRobot, Inc.; and NVIDIA Corporation.
Several companies are implementing market expansion & growth strategies such as divestitures, partnerships, acquisitions, R&D investments, mergers, collaboration, and product launches to boost their market share. For instance,
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On 23 May 2023, Adobe launched Firefly, a generative AI model,whose primary function is to generate images and text effects. Firefly is a constituent of a series of novel Adobe Sensei generative AI services across Adobe’s various clouds. The technology is designed to produce content and images that are safe to use commercially by any business, without any constraints of data loss or manipulation.
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