70% of global ad spend through AI platforms by 2028
More than 70% of global ad spend and 80% of US ad spend will by 2028 flow through AI- influenced self-serve advertising platforms, according to market research firm Gartner.
“AI is not merely helping marketers execute campaigns faster. Advertising platforms are using it to exert greater influence over how marketers reach their audiences, what they pay, and the outcomes they achieve,” says Eric Schmitt, VP Analyst at Gartner.
AI is deeply embedded in the algorithms that advertising platforms use to determine which ads are shown, to whom and at what cost, the forecast says. “This “back-office” AI is distinct from GenAI used to develop advertising creative. It operates behind the scenes to influence how advertising is bought, priced and delivered.”
“AI was expected to make advertising more efficient, but improved platform economics does not necessarily translate into lower costs for the advertiser. CMOs (Chief Marketing Officers) need independent evidence that they’re getting the returns they expect,” says Schmitt.
Advertisers and agencies are increasingly buying and managing media through advertising platform interfaces and APIs. Over time, AI will become more deeply embedded in decisions involving ad delivery, audience selection and pricing, according to the forecast.
The forecast says CMOs should:
- Concentrate investment, talent and management attention on the platforms most critical to reaching priority audiences and driving results.
- Use additional platforms selectively to expand reach, test new opportunities and capture incremental performance.
- Direct more investment toward platforms that enable meaningful performance comparisons and independent evaluation of results.
“The more influence AI has over advertising decisions, the more important independent measurement becomes,” Schmitt says. “CMOs need confidence that platform performance reflects real business impact, not just platform-reported results.”
Moonshot News is an independent European news website for all IT, Media and Advertising professionals, powered by women and with a focus on driving the narrative for diversity, inclusion and gender equality in the industry.
Our mission is to provide top and unbiased information for all professionals and to make sure that women get their fair share of voice in the news and in the spotlight!
We produce original content, news articles, a curated calendar of industry events and a database of women IT, Media and Advertising associations.
