Generative AI In Marketing Market Size, Share & Trends Analysis Report By Component (Service, Software), By System Type (Text Models, Multimodal Models), By Application, By End Use, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global generative AI in marketing market size was valued at USD 1.98 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 36.1% from 2023 to 2030. Due to the growing demand for effective customer service, generative AI is used to develop smart chatbots capable of handling difficult inquiries. These AI-powered chatbots use natural language processing to give real-time support, improving consumer experiences and decreasing response times. Companies may provide round-the-clock assistance, increasing client satisfaction and loyalty.

Owing to the growing demand for personalized experiences, generative AI can form personalized content individually for each customer, such as email messages, landing pages, and product recommendations. Marketing professionals may use this to increase engagement and enhance the relevancy of their marketing communications. For instance, A clothing retailer may utilize generative AI to develop personalized product suggestions for each consumer based on their previous purchases, browsing history, and social media activity. It would assist the brand in ensuring that customers only see relevant goods, increasing sales.

Due to the increasing demand for richer and more captivating interactions, generative AI has the potential to generate augmented reality (AR) encounters, which are interactive occurrences that superimpose digital elements onto real surroundings. AR can enrich the user encounter in diverse ways, aiding users in visualizing items, gaining knowledge about merchandise, and experimenting with products. For instance, an enterprise specializing in furniture might employ AR to show customers how a furniture piece would fit within their living space. It would ultimately empower customers to arrive at more informed purchasing decisions.

Component Insights

The software segment dominated the market in 2022 with a market share of 64.83%. One of the key marketing trends in the generative AI software industry is automated content production geared for multichannel campaigns. AI-powered systems are intended to produce consistent and compelling content across several channels, such as social media, emails, and websites. This trend saves marketers time and assures a consistent brand message, allowing for effective contact with audiences across several channels. The generated material may be tailored to the specific needs of each channel, increasing engagement and impact.

The service segment is estimated to register the highest CAGR over the forecast period. Innovative conversational chatbot platforms that use generative AI and natural language processing to support real-time interactions with clients are being developed in the software component. On the services front, suppliers are offering chatbot design and training services to guarantee that these AI-powered systems match the voice of a company and the demands of its customers. This trend enhances client experiences by providing human-like conversations, supplemented by professional services that boost the chatbot's performance.

System Type Insights

The Text Models segment dominated the market in 2022 with a market share of 64.0%. Developing advanced Natural Language Generation (NLG) systems for content creation is an emerging trend within the generative AI market's text model segment. NLG models are becoming increasingly sophisticated and capable of producing well-crafted written content, including articles, product descriptions, and social media posts. This trend empowers marketers to generate diverse content efficiently, saving time and resources while maintaining a consistent message across multiple platforms. With the evolution of NLG systems, they are poised to become a crucial asset for content marketers aiming to expand their reach and effectively connect with their audience.

The emergence of interactive customer engagement through AI-driven visuals is a noteworthy trend in the multimodal model’s category. These models can produce interactive images, videos, and visual content that react based on user actions. This trend enriches user experiences by enabling direct customer involvement with marketing content, such as virtual product trials and immersive product showcases. With the growing prominence of AI-enabled interactive visuals, there is a transformation in how brands engage with their audience, resulting in memorable and influential interactions.

Application Insights

The Content Generation segment dominated the market in 2022 with a share of around 23.9%. A rising pattern within generative AI for content creation involves generating video scripts and storyboards. AI-driven platforms can assess marketing goals and product details, producing scripts and visual story structures for promotional videos. This development expedites video production by offering a fundamental framework for content generation, permitting marketers to concentrate on implementation and imaginative aspects. With the growing prominence of video content in marketing, AI-derived scripts, and storyboards facilitate the production of captivating and influential visual content.

Owing to the growing need for top-notch and pertinent content, generative AI is reshaping the landscape of Search Engine Optimization (SEO) tactics. Systems powered by AI can produce meticulously optimized articles, blog posts, and website content infused with relevant keywords, adhering closely to the most current SEO guidelines. This movement aids marketers in maintaining a steady flow of valuable content, elevating the visibility of their web presence in search engines and ultimately fostering the growth of organic traffic. With the increasing emphasis on content excellence, generative AI emerges as a scalable remedy to cater to the contemporary demands of SEO practices.

End-Use Insights

The retail and e-commerce segment dominated the market in 2022 with a market share of 21.5%. Due to the growing desire for individually tailored shopping experiences, generative AI is transforming the Retail and E-commerce industry landscape. Systems fueled by AI can scrutinize customer preferences, previous buying patterns, and online browsing habits to craft individualized product recommendations and shopping ideas. This shift amplifies customer interaction, boosts conversion rates, and cultivates brand allegiance by delivering custom shopping paths. As the demand for personalized encounters escalates, generative AI emerges as a tactical asset for addressing the ever-changing needs of the retail realm.

Owing to the growing desire for customized content consumption, generative AI is transforming the Media and Entertainment industry landscape. Systems fueled by AI can assess individual user preferences, observing habits, and content interactions to craft personalized suggestions for articles, movies, music, and shows. This shift heightened user involvement and content enjoyment, resulting in extended content consumption periods and heightened platform loyalty. As viewers increasingly demand personalized encounters, generative AI emerges as a crucial instrument to cater to the wide-ranging entertainment preferences of individuals.

Regional Insights

The North America region accounted for the highest share in the generative AI in marketing marketat 33.0% in 2022. A significant development in the North American generative AI market involves broadening the scope of AI-driven customer engagement tactics. Enterprises are integrating generative AI to establish chatbots, virtual assistants, and personalized suggestions that engage with customers instantly. This movement elevates customer contentment, simplifies support procedures, and nurtures deeper interactions, bolstering brand allegiance. As businesses in North America increasingly adopt AI for customer engagement, they enhance their ability to address the escalating need for smooth and effective interactions.

Asia Pacific is expected to emerge as the fastest-growing regional market, with a CAGR of 40.1% over the forecast period. An important development in the Asia Pacific generative AI market is the increasing adoption of AI-fueled influencer marketing strategies. Businesses are harnessing the power of generative AI to pinpoint fitting influencers, scrutinize their audience demographics, and generate tailored partnership proposals. This trend simplifies selecting influencers, fine-tunes campaign targeting, and elevates the credibility of influencer collaborations. With the Asia Pacific region embracing influencer marketing, strategies empowered by AI are gaining prominence as a pivotal force in establishing meaningful bonds between brands and local influencers, thus resonating more effectively with audiences.

Key Companies & Market Share Insights

The market is characterized by intense competition, with few prominent players worldwide controlling a sizable market share. The primary focus is on innovative product development and collaboration among significant players. For instance, In March 2021, ALTAIR ENGINEERING. Inc. introduced Thea Render V3.0, a 3D rendering tool that utilizes advanced graphic processing units for unbiased rendering and advanced quality enhancement.

In another instance, in March 2023, Open AI released the most recent iteration of their AI offering, GPT-4. GPT-4 enables the creation and modification of images, videos, music, and text based on provided input. Some of the key players in the global generative AI in marketing market are:

• Adobe Inc.

• Amazon Web Services Inc.

• Genie AI Ltd.

• Google LLC

• IBM Corporation

• Microsoft Corporation

• MOSTLY AI Inc.

• Open AI

• Synthesis AI

• Paige.AI

• Rephrase.AI

Generative AI In Marketing Market Report Scope

Global Generative AI In Marketing Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global generative AI in marketing market based on component, system type, application, end-use, and regions.

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

  • Service

  • Software

• System Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Text Models

  • Multimodal Models

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

  • Content Generation

    • Text Generation

    • Image/Video Generation

    • Audio Generation

  • Search Engine Optimization (SEO)

  • Lead Nurturing & Lead Scoring

  • Reporting & Analytics

  • Social Media Marketing

  • Other Application

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

  • Media & Entertainment

  • IT & Telecommunications

  • Healthcare

  • Automotive & Transportation

  • BFSI

  • Retail and E-commerce

  • Other End-Use Industries

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

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

  • Latin America

    • Mexico

    • Brazil

  • Middle East and Africa

    • Kingdom of Saudi Arabia (KSA)

    • UAE

    • South Africa