Global Generative AI In Digital Marketing Market Set For 32.3% Growth, Reaching $7.6 Billion By 2028
In recent years, the market for generative artificial intelligence (AI) in digital marketing has grown rapidly, and this trend is expected to continue. The market is expected to increase at a strong compound annual growth rate (CAGR) of 32.1%, from $1.88 billion in 2023 to $2.48 billion in 2024.
Why Is the Digital Marketing Market Growing At Such a Rapid Pace?
Increased use of digital channels, improvements in AI technology, expanding data availability, the need for personalization, lower marketing costs, pressure from competitors, and improved customer insights are all factors contributing to growth during the historical period. Moreover, much greater growth is anticipated in the years to come. In fact, the market for generative AI in digital marketing is expected to grow at a compound annual growth rate (CAGR) of 32.3% to reach $7.6 billion by 2028.
What Are the Major Trends and Drivers of the Generative AI In Digital Marketing Market?
The expansion of AI capabilities, integration with emerging technologies, heightened customer experience focus, omnichannel marketing, privacy and regulatory concerns, growth in mobile and voice search, and increased investment in AI research are all factors contributing to the growth during the forecast period. AI-driven content production, real-time personalization, improved customer contact tools, predictive analytics, integration with CRM systems, ethical AI, bias reduction, and the use of AI in creative design are some of the noteworthy developments for the projected period.
It is anticipated that the increasing popularity of video content would help generative AI expand in the market for digital marketing. Video content has grown in popularity as a way to visually communicate complicated information, engage viewers, and encourage greater participation on digital platforms. Generative AI in digital marketing acts to boost video content creation by automating production, personalizing visuals, and optimizing engagement — elements that increase brand consistency, target diverse audiences more effectively and scale marketing efforts.