AI will alter US digital ad industry
Monday, June 12, 2023
Significance
This segment of the advertising industry faces formidable challenges, from growing privacy-related impediments to targeted advertising to the emergence of ad networks run by retailers and the rapidly increasing use of artificial intelligence (AI) in advertising (AdAI), posing an existential threat to advertising agencies.
Impacts
- Brands will create their own generative AI models, trained on their data, and rely less on generative AI (GenAI).
- Honing a strong brand identity will be increasingly important to companies when GenAIs can readily mimic any brand.
- Gen Alphas (born 2010-24) have a more ambiguous attitude to GenAI than their elders, fearing it will replace their creativity.
- Consumer acceptance of GenAI-embedded ads is an unknown at this early stage.
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