The AI in Advertising Market is projected to grow to $36.34 billion by 2030

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The Business Research Company’s AI in Advertising Global Market Report 2026 - Market Size, Trends, And Global Forecast 2026-2035

The Business Research Company’s AI in Advertising Global Market Report 2026 - Market Size, Trends, And Global Forecast 2026-2035”

— The Business Research Company

LONDON, GREATER LONDON, UNITED KINGDOM, February 26, 2026 /EINPresswire.com/ -- The AI in advertising sector is witnessing remarkable expansion as businesses increasingly leverage cutting-edge technologies to enhance marketing efforts. With digital transformation reshaping how brands connect with consumers, AI tools are becoming vital for delivering personalized and efficient advertising. Below, we explore the current market size, growth drivers, regional outlook, and key trends shaping this rapidly evolving industry.

Projected Growth and Market Size of the AI in Advertising Market
The AI in advertising market has experienced rapid growth, with its size expected to climb from $11.17 billion in 2025 to $14.12 billion in 2026. This represents a compound annual growth rate (CAGR) of 26.4%. This surge during the historic period has been fueled by increased digital advertising spending, the broadening reach of social media platforms, greater access to consumer data, the rise of automated ad buying, and a stronger emphasis on optimizing marketing return on investment (ROI).

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Looking ahead, the market is set to expand even more dramatically, reaching $36.34 billion by 2030 with a CAGR of 26.7%. This forecasted growth is driven by the adoption of privacy-compliant advertising methods, the rise of AI-powered creative optimization, the growing use of omnichannel advertising strategies, heightened investments in marketing automation, and a rising demand for real-time campaign analytics. Key trends expected to shape this period include the growing use of programmatic advertising platforms, widespread embrace of predictive audience analytics, heightened focus on personalized campaigns, expansion of real-time bidding optimization, and stronger implementation of performance attribution models.

Understanding AI in Advertising and Its Role
Artificial intelligence in advertising involves deploying machine learning algorithms, comprehensive data analytics, and automation to design, implement, and refine advertising campaigns. By processing vast amounts of consumer data, AI predicts user behavior, customizes messaging, and targets audiences with greater precision. This leads to improved advertising effectiveness by making ads more relevant and engaging, ultimately enhancing return on advertising spend through data-driven optimizations.

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Personalized Experiences as a Major Growth Driver in the AI Advertising Market
One of the primary forces propelling this market is the increasing demand for personalized customer experiences. Tailoring products, services, and interactions to align closely with individual preferences and behaviors boosts customer engagement and satisfaction. Rising consumer expectations for highly customized service are driving brands to adopt AI-powered advertising solutions that analyze user behavior to deliver targeted, relevant content instantly.

Supporting this trend, in February 2025, SAP SE reported that 64% of U.S. shoppers felt AI had improved their retail experiences in 2024, marking a 25% increase in positive sentiment from the previous year. Additionally, a January 2023 Salesforce Inc. survey of 5,000 consumers revealed that 81% planned to reevaluate their budgets over the next year in favor of more personalized experiences. In the hospitality sector, 72% of respondents said they would stay loyal to companies offering faster service, while 65% favored those providing personalized experiences. These insights underscore how personalization is a key driver in the growth of AI in advertising.

Regional Overview of the AI in Advertising Market
In 2025, North America held the largest share of the AI in advertising market, establishing itself as a dominant region in this space. Meanwhile, Asia-Pacific is projected to be the fastest-growing region during the forecast period. The comprehensive market analysis includes regions such as Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa, reflecting diverse global dynamics influencing market expansion.

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