Artificial Intelligence (AI) In Marketing Market Size, Share & Trends Analysis Report By Component, By Application, By Technology, By End-User Industry, By Region, And Segment Forecasts, 2023 - 2030

Market Size & Trends

The global artificial intelligence (AI) in marketing market size was valued at USD 12.64 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 26.6% from 2023 to 2030. The growing adoption of machine learning and artificial intelligence to offer increased acceptance of social networking platforms, individualized consumer experiences, and the rise of online shopping are primary factors driving market expansion. For instance, Google Responsive Search Ads is a text ad format available in Google Ads, an online advertising platform developed by Google that enables advertisers to generate multiple headlines and descriptions for a single advertisement. Using the Google advertisement feature, entrepreneurs can start their ads by tailoring them to a geographic range, budgetary needs, and other factors.

AI assists marketers in better targeting and segmenting audiences and providing more personalized experiences. AI has been used to drive success in various industries, including automotive, insurance, finance, retail, and healthcare. AI is poised to increase the effectiveness, efficiency, and impact of advertising, from more precise targeting audiences to automating ad creation and delivery. For instance, IBM Watson, a data analytics processor developed in IBM's DeepQA project, uses artificial intelligence to assist retail companies in creating more personalized purchasing experiences by utilizing real-time data that more accurately reflect a customer's current purchasing status.

The healthcare industry marketing can benefit from Artificial intelligence in many areas of medicine. Chatbots can assist healthcare marketers by increasing on-site engagement and conversion or directing potential patients to answers online, improving the overall patient experience. Predictive analytics enables forecasting of demographic groups' future behavior and creating marketing campaigns specific to each demographic or analyzing spikes in patient visits by town or time by analyzing demographic trends. Youper is a healthcare technology company dedicated to making mental health care. Youper's A.I. tracks and improves users' emotional health using quick, personalized conversations and psychological techniques.

Companies have gradually shifted from a product-driven marketing strategy to a customer-centric one. Businesses focus on developing long-term relationships with their customers to survive in competitive AI in the marketing industry. The motivation for change is to understand their customers better and predict consumer behavior based on product purchases. A customer-centric strategy focuses on providing an exceptional customer experience before and after the sale to increase order repetition and customer loyalty and encourage business development. AI-powered tools can produce ad copy, images, and videos based on the advertiser's objectives, target market, and messaging. It can help advertisers create ads more quickly and efficiently and lower the cost of working with advertising agencies. Component Insights

The services segment dominates the market, with a revenue share of 59.3% in 2022. The service segment of AI in marketing refers to using AI to enhance customer service and support. AI-powered customer service tools are helping companies to deliver highly personalized service experiences. AI algorithms can provide customized recommendations and solutions by analyzing customer data, including purchase history, browsing behavior, improving customer satisfaction. Moreover, AI is helping companies to deliver faster, more efficiently, and more personalized customer service experiences. As AI technology continues to evolve, we can expect to see even more innovative solutions in the service segment of AI in marketing.

AI marketing software uses artificial intelligence technology to make automated decisions. Moreover, decisions are based on data collected, analyzed, and interpreted based on market trends. For instance, Seventh Sense, a Virginia-based sales, and marketing software platform, provides AI software to assist in optimizing the performance and engagement of email marketing campaigns and programs. The increasing use of AI software in various applications, including voice and image recognition apps on social networks, smartphone assistants, and software that serves advertisements on various websites, drives segment's growth.

Market Dynamics

The growing access to high-speed internet across the globe has led to a substantial increase in data generation from various sources such as social media, online transactions, and digital interactions. AI has flourished in this data-rich environment as it can efficiently process and analyze large volumes of data. Companies from diverse industries have harnessed this data to improve their operations and enhance customer experiences through AI-powered solutions. These solutions include data analysis, predictive modeling, personalized recommendations, and automation, all of which are driven by valuable insights extracted from a vast pool of data made available by the internet. For instance, Facebook, Inc. uses AI for precise ad targeting and personalized ad experiences, leveraging user data to optimize content delivery and predict user behavior.

The intersection of IoT-generated data and AI has significantly fueled the growth of AI in marketing sector. IoT, through its network of interconnected devices, enables the collection of data pertaining to consumer behavior, preferences, and interactions. This data, often in real-time, offers deep insights into how consumers engage with products and services. For instance, Nestle, a multinational food and beverage company, utilized IoT sensors in its Nespresso coffee machines. These sensors collect data on user behavior, such as coffee preferences, usage patterns, and machine performance.

Application Insights

The content curation segment dominates the market, with a revenue share of 22.0% in 2022. AI-powered content recommendation engines are becoming more sophisticated, using machine learning algorithms to analyze user behavior and preferences to provide personalized content recommendations. This allows marketers to deliver more relevant and engaging content to their audience, increasing the demand for AI in marketing. Moreover, AI is being used to generate content, from blog posts to social media updates. Using natural language processing and machine learning algorithms, AI can create optimized content for specific audiences and channels, making it easier for marketers to produce content at scale. Virtual assistants can be chatbots, digital avatars, or voice assistants that understand and

respond to user requests using natural language processing, computer vision, and machine learning algorithms. Virtual assistance can improve the efficiency and effectiveness of human-computer interactions in various domains, including customer service, healthcare, finance, and education, which is responsible for segment growth. Alexa, Siri, and Google Assistant are examples of virtual assistants. With rising demand for convenience and personalized experiences, virtual assistance is expected to play a growing role in developing AI in the marketing Market over the forecasted period.

Technology Insights

The Machinelearning (ML) segment dominates the market, with a revenue share of 38.1% in 2022. Computers can use ML technologies to understand, interpret, and generate human language, allowing them to perform tasks such as machine translation, sentiment analysis, question answering, and text generation. These technologies are commonly used in various applications, including virtual assistants, chatbots, and personalized recommendation systems. With an increasing volume of unstructured text data generated each day, ML is expected to grow and play an essential role in the development of AI.

The computervision segment is expected to grow at the fastest CAGR during the forecast period. Computer vision solutions can be adapted to specific aspects of social media. It can provide marketers with real-time information directly related to consumer behavior. For example, Meta Platforms, Inc., a U.S.-based technology company, employs a technology known as a DINO to train vision transformers (Vit). Moreover, without human intervention, this model can detect and classify objects in a video and image.

End-User Industry Insights

The media & entertainment segment dominates the market, with a revenue share of 23.5% in 2022. The rising AI advertising applications with significant traction are responsible for this high share. For example, in January 2022, Cadbury, a U.K.-based confectionery company, launched an initiative that enabled small business owners to create their ads for free using a celebrity's voice and facial features using AI tools. In BFSI, AI virtual assistants track transactions, observe customer behavior, and audit and log data to numerous compliance and regulatory systems, which propels the expansion of the BFSI segment.

The IT and telecommunications industries are expected to grow with a CAGR of 24.9% from 2023 to 2030. The industry has significant players in the AI marketing market. The industry's major players are Google LLC, Facebook, Inc., Amazon.com, Inc., Microsoft Corporation, and IBM. The industry uses AI technologies to improve its marketing efforts and provides AI-powered marketing solutions to other companies. The IT and telecommunications industry is experiencing significant growth in AI in Marketing due to increasing demand for personalized and data-driven marketing solutions.

Regional Insights

North America dominates the AI marketing market, with a revenue share of 32.8% in 2022. The factor attributed to the region’s growth is an expansion of retail, BFSI, healthcare, automotive, and other industries. The region's numerous well-known technology firms are aware of promising possibilities presented by AI in marketing. Moreover, small and large companies are using AI significantly in the region, especially compared to the rest of the world. North America significantly influences the AI market, and this region is predicted to continue expanding.

Asia Pacific region is expected to grow with the fastest CAGR of 27.9% from 2023 to 2030. Rapid technological development and digitalization, expansion of the e-commerce and online retail sectors, rising investment in artificial intelligence, and increasing business awareness and adoption of AI-powered marketing solutions are key factors influencing growth in this region. China's AI industry is expanding quickly, and it is anticipated that China will soon take the lead in AI technology. With a rising need for individualized and data-driven marketing solutions, the Asia Pacific region's retail and e-commerce sectors are a key industry vertical for AI in marketing.

Key Companies & Market Share Insights

The market is characterized by strong competition, with a few major worldwide competitors owning a significant market share. The major focus is on developing new products and collaboration among key players. For instance, in February 2023, Bain & Company, an American management consulting company, and OpenAI, a U.S.-based artificial intelligence company, collaborated to assist business clients in identifying and realizing AI's full potential. Moreover, Coca-Cola Company, a U.S.-based drink industry, planned to engage with this alliance to create personalized ad copy, images, and messaging using OpenAI's ChatGPT and DALL-E platforms. Some of the prominent players in the global artificial intelligence (AI) marketing market include:

• Amazon.com, Inc.

• Baidu, Inc.

• Google LLC

• Intel Corporation

• International Business Machines Corporation

• Microsoft Corporation

• NVIDIA Corporation

• Oracle Corporation

• Salesforce, Inc.

• Twitter, Inc.

Artificial Intelligence (AI) in Marketing Market Report Scope

Global Artificial Intelligence (AI) In Marketing Market Report Segmentation

This report forecasts revenue growth on global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global artificial intelligence (AI) in marketing market based on component, application, technology, end-user industry, and region:

• Component Outlook (Revenue, USD Million, 2017 - 2030)

  • Software

  • Services

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Social Media Advertising

  • Search Engine Marketing

  • Virtual Assistant

  • Content Curation

  • Sales & Marketing Automation

  • Analytics Platform

  • Others

• Technology Outlook (Revenue, USD Million, 2017 - 2030)

  • Machine Learning

  • Natural Language Processing

  • Computer Vision

  • Others

• End-User Industry Outlook (Revenue, USD Million, 2017 - 2030)

  • BFSI

  • Retail

  • Consumer Goods

  • Media & Entertainment

  • IT & Telecommunications

  • Others

• Artificial Intelligence in Marketing Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa

    • Kingdom of Saudi Arabia (KSA)

    • UAE

    • South Africa