Global Artificial Intelligence (AI) in Marketing Market - 2023-2030

Global Artificial Intelligence (AI) in Marketing Market - 2023-2030

Global Artificial Intelligence (AI) in Marketing Market reached US$ 12.7 billion in 2022 and is expected to reach US$ 77.3 billion by 2030, growing with a CAGR of 25.1% during the forecast period 2023-2030.

Data is increasing as a result of industry digitization. As data is the core foundation of AI, the more data there is, the more useful AI can be for marketing. The sophisticated marketing activities that AI systems can tackle easily include consumer segmentation, customization and predictive analytics. Because high-performance computing resources are easily accessible, AI can process massive datasets rapidly and effectively, enabling real-time decision-making.

For instance, on 25 May 2023, Appier, a prominent artificial intelligence (AI) software-as-a-service company, is partnering with leading retail and e-commerce brands in Southeast Asia to transform their marketing strategies and provide highly personalized shopping experiences across digital platforms. The rise of Generative AI is significantly impacting the retail industry, enabling retailers to automate tasks, scale personalized marketing efforts, enhance chatbot customer service support and generate actionable insights.

Asia-Pacific is among the growing regions in the global artificial intelligence (AI) in marketing market covering more than 1/3rd of the market and with a huge population having access to the internet, the area experienced major digitalization, which has enhanced data collection and provided useful insights for AI-driven marketing and there is a demand for AI-powered recommendation engines, personalization and customer support due to the expansion of e-commerce platforms in nations like China, India and Southeast Asian countries.

Dynamics

Rising Demand for Predictive Analysis

Automation of routine tasks and processes allows legal professionals to focus on higher-value tasks, such as legal analysis and strategy development and this leads to increased efficiency and productivity within law firms and legal departments. Automation helps reduce operational costs by minimizing the need for manual labor in tasks like document review, contract analysis and legal research, this cost reduction is appealing to legal organizations seeking to optimize their budgets.

According to Squarkai.com, AI and predictive analytics enable marketers to create highly personalized campaigns by analyzing individual customer data and this tailored approach increases customer engagement and conversion rates. Predictive analytics automates data analysis, saving time and resources. Marketers can allocate their efforts to more strategic tasks, improving overall efficiency. According to Spiralytics, in 2021, 80% of professionals have AI-based solutions that have a major impact on data protection.

Collaboration Between Companies Boosts the Market

Companies can combine their capabilities, such as AI algorithms, data analytics, marketing platforms and awareness of particular industries, through collaboration to provide more efficient AI marketing solutions. By encouraging the exchange of ideas and studying novel technologies, collaboration promotes innovation. Companies can collaborate to create cutting-edge AI tools and methodologies that expand the potential of marketing.

For instance, on 16 August 2023, Langoor Digital and Quilt AI entered into a strategic partnership with the aim of transforming the marketing landscape using advanced artificial intelligence (AI) technologies and this collaboration will redefine how marketers engage with and comprehend their audiences. By merging Langoor's innovative marketing strategies with Quilt AI's expertise in Diagnostic, Predictive and Generative AI, this partnership seeks to revolutionize how marketers harness the potential of AI in their endeavors.

Enhancing Marketing Capabilities with AI Algorithms

The creation of more sophisticated machine learning models and algorithms has greatly enhanced AI's marketing capabilities. These models and algorithms can analyze huge datasets, spot trends and make incredibly precise predictions, resulting in more successful marketing efforts. As big data sources become more accessible, marketers will have the opportunity to utilize an abundance of data to use and evaluate, these huge databases can be processed by AI, which will help marketers make decisions based on data.

For instance, on 12 September 2023, Coca-Cola launched a new beverage called Coca-Cola Y3000, which is touted as the first flavor co-created with both human and artificial intelligence (AI) and this product is part of Coca-Cola's Creations platform, which aims to appeal to younger consumers while highlighting its signature soda. Coca-Cola Y3000, like other beverages in the Creations platform, does not emphasize a specific flavor but focuses on providing a unique mood or experience. Coca-Cola used AI to understand how people envision the future through emotions, aspirations, colors and flavors.

Inaccurate or Biased Data and Required Maintenance

AI relies heavily on data and the quality of the data used can significantly impact AI's performance. Inaccurate or biased data can lead to flawed predictions and recommendations. Additionally, using consumer data for AI-driven marketing creates privacy issues and demands compliance with data protection laws like GDPR and CCPA. AI lacks human creativity and emotional intelligence, nevertheless, it can evaluate data and make data-driven decisions. It may struggle to generate genuinely creative and emotionally resonant content that engages customers on a deep level.

Implementing AI in marketing is complex and resource-intensive. It requires specialized skills and expertise to develop and maintain AI models and systems. Small and mid-sized businesses may face challenges in adopting AI due to resource constraints. Relying solely on AI algorithms to make marketing decisions can lead to a lack of human oversight. Human marketers should still play a role in interpreting AI-generated insights and making strategic decisions.

Segment Analysis

The global artificial intelligence (AI) in marketing market is segmented based on offering, deployment type, technology, application, end-user and region.

Adoption of Cloud-Based Artificial Intelligence (AI) Platforms

The increasing volume of data generated by online activities provides a wealth of information for marketers. Cloud-based AI solutions can efficiently process and analyze this data to derive valuable insights and improve marketing strategies. Cloud-based AI platforms offer scalability, allowing businesses to easily expand their AI capabilities as their marketing needs grow and this scalability is crucial in handling large datasets and complex AI models.

For instance, on 8 May 2023, Salesforce introduced new AI-powered innovations for its Marketing Cloud, aimed as 78% of the marketers say that they drive the market and help companies to create more personalized and humanized interactions with customers. The new features include Einstein Engagement Scoring in Salesforce CDP, Einstein Designer, Interaction Studio Templates and Datorama Connectors. In today's digital-first world, companies need to deliver connected and relevant experiences to meet changing customer expectations.

Geographical Penetration

Technological Infrastructure and AI-driven Campaign Decisions Boosts the Market

North America is dominating the global artificial intelligence (AI) in marketing market covering more than 1/3rd of the market and the region, particularly U.S., boasts advanced technological infrastructure that supports AI development and deployment and this includes robust cloud computing services, high-speed internet and access to cutting-edge hardware. North America generates huge amounts of data daily and this data serves as the lifeblood of AI, enabling machine learning algorithms to make data-driven marketing decisions.

For instance, on 14 June 2023, Scibids partnered with Tinuiti, a performance marketing agency, to launch the Scibids AI Insights Solution and this solution offers transparency and control over the ad decisioning process within Scibids' AI-powered algorithms, providing media buyers with insights into AI-driven campaign decisions. It analyzes variables such as URLs, creative elements, location and time of day to understand their impact on campaign performance.

Competitive Landscape

The major global players in the market include IBM Corporation, Intel Corporation, Alphabet Inc, Microsoft Corporation, Twitter, Inc., Samsung India Electronics Pvt. Ltd., Amazon.com, Inc., NVIDIA Corporation, Albert Technologies Ltd. and H2O.ai, Inc.

COVID-19 Impact Analysis

The pandemic forced many businesses to expedite their digital transformation efforts, including the adoption of AI-powered marketing technologies. Physical stores closed and consumers spending more time online, companies turned to AI to enhance their digital marketing strategies. As in-person shopping declined, e-commerce experienced significant growth. AI-driven recommendation engines, chatbots and virtual shopping assistants became essential tools for online retailers to personalize the shopping experience and manage increased customer inquiries.

Content generation and curation tools powered by AI became crucial as companies needed to maintain an online presence and communicate with customers. AI helped create and distribute content at scale while minimizing the need for manual labor. Due to economic uncertainties, many businesses adjusted their marketing budgets. AI tools that provided cost-effective and measurable results gained favor, leading to an increased allocation of resources to AI-driven campaigns.

Consumer behavior changed rapidly during the pandemic. AI was used to analyze these shifts in real time, helping marketers adapt their strategies to meet evolving customer needs and preferences. AI was employed in supply chain and inventory management to predict demand fluctuations, optimize product availability and reduce disruptions caused by supply chain challenges.

AI Impact

AI-powered tools lead to processing a large amount of data in real-time, providing marketers with valuable insights into consumer behavior, preferences and trends, this data-driven approach enables more effective targeting and personalization of marketing campaigns. Marketers could produce highly targeted and relevant content for various audience categories using AI algorithms that can segment customers based on their demographics, behavior and goals, this segmentation boosts audience engagement and conversion rates.

AI enables dynamic content generation and personalized recommendations. Marketers can deliver tailored messages, product recommendations and offers to individual customers, enhancing the customer experience and driving sales. AI-powered chatbots and virtual assistants can provide instant customer support, answer queries and guide users through the purchase process and they offer 24/7 availability and can handle routine tasks, freeing up human agents for more complex issues.

For instance, on 13 September 2023, e-Core, a technology services partner specializing in digital transformation, introduced Orbit AI, a strategic approach to leverage artificial intelligence (AI) for business expansion and productivity enhancement and this initiative aims to boost the productivity of digital services and expedite project delivery times. It empowers e-Core's teams with AI Agents, resulting in significant milestones such as a 55% increase in code delivery speed and a 43% overall productivity improvement since its implementation.

Russia- Ukraine War Impact

The ongoing conflict has created economic uncertainty, both in the region and globally. Economic instability can affect marketing budgets and investment in AI technologies. Companies may become more cautious about adopting new AI marketing tools during uncertain times. The war has strained international relations, leading to increased geopolitical tensions. Such tensions can impact global trade and collaboration, which may affect the availability and accessibility of AI-powered marketing solutions.

The conflict has disrupted supply chains, especially in industries with ties to the region. AI hardware components, software development and data centers can be affected by these disruptions, potentially impacting the AI marketing ecosystem. Geopolitical tensions can lead to concerns about data privacy and security. Companies using AI for marketing must ensure the protection of customer data, especially if they have operations or customers in the affected regions.

By Offering
● Hardware
● Software
● Services

By Deployment Type
● Cloud
● On-Premise

By Deployment Type
● Machine Learning
● Context-Aware Computing
● Natural Language Processing
● Computer Vision

By Application
● Social Media Advertising
● Search Advertising
● Content Curation
● Sales Marketing Automation
● Analytics Platforms
● Others

By End-User
● BFSI
● Retail
● Consumer Goods
● Media Entertainment
● Enterprise
● Others

By Region
● North America

U.S.

Canada

Mexico
● Europe

Germany

UK

France

Italy

Russia

Rest of Europe
● South America

Brazil

Argentina

Rest of South America
● Asia-Pacific

China

India

Japan

Australia

Rest of Asia-Pacific
● Middle East and Africa

Key Developments
● In March 2023, HubSpot launched two new tools powered by artificial intelligence (AI) Content Assistant and ChatSpot.ai. These tools aim to help customers save time and improve audience engagement. Content Assistant and ChatSpot.ai leverage industry-leading AI systems from OpenAI to enhance efficiency for marketing, sales and customer service professionals.
● In July 2023, Interpublic Group (IPG) and its global creative network McCann Worldgroup joined the Partnership on AI to Benefit People and Society (PAI), becoming the first global marketing and advertising services company to join the group. PAI is a nonprofit partnership that works to advance responsible governance and best practices in artificial intelligence (AI).
● In July 2023, HCL Software launched HCL Marketing Cloud, an AI-powered SaaS solution designed to assist marketers in managing end-to-end marketing needs. It provides predictive and generative AI capabilities, allowing marketers to create tailored campaigns, address complexities across the organization, execute real-time customer behaviors, capitalize on revenue opportunities and deliver connected customer experiences.

Why Purchase the Report?
● To visualize the global artificial intelligence (AI) in marketing market segmentation based on offering, deployment type, technology, application, end-user and region, as well as understand key commercial assets and players.
● Identify commercial opportunities by analyzing trends and co-development.
● Excel data sheet with numerous data points of artificial intelligence (AI) in marketing market-level with all segments.
● PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
● Product mapping available as excel consisting of key products of all the major players.

The global artificial intelligence (AI) in marketing market report would provide approximately 77 tables, 83 figures and 199 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies