Advertisers have taken notice of the AI boom and have been investing heavily in AI-related advertisements. According to a report from ad intelligence and sales enablement platform MediaRadar, AI-related spending has been nearly four times higher in 2023 compared to the same period in 2022. In the third quarter of 2023, advertisers spent a total of $35 million on AI product ads – a 550% increase from the summer of 2022.
Big spenders include tech companies such as IBM (IBM watsonx), Microsoft (Microsoft 365 Copilot), Dialpad, Salesforce (Slack GPT), and YourHana.AI. The majority of the spending went to TV and online video, with IBM watsonx leading the charge. Other digital platforms such as digital display and paid social also saw a significant amount of spending.
The number of AI advertisers in Q3 2023 increased by 135% compared to the same period in 2022, with an increase in month-over-month spending of nearly 200%. This spike in spending is likely due to new advertisers and IBM watsonx upping their ad spend.
The effectiveness of AI-related advertising is supported by a survey from Matter Communications which found that 85% of marketing decision-makers and CMOs use AI tools and 41% use them regularly. Furthermore, the survey indicated that marketers intend to invest even more in AI tools in the upcoming year.
It is clear that AI is no longer just hype, with businesses actively using AI tools in their workflow and investing in AI-related advertisements. The future of AI-driven products and services looks promising and is sure to bring about further investments in the technology.
Originally reported by Martech: https://martech.org/ai-ad-spending-has-skyrocketed-this-year/
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