Artificial intelligence (AI) is transforming industries across the board, and advertising is no exception. According to recent data analyzed by MediaRadar, AI advertising spend has skyrocketed over the past two years, with no signs of slowing down.
MediaRadar’s CEO Todd Krizelman recently shared valuable AI advertising insights in a LinkedIn video, noting “There are 54 of the advertisers running in Q3 so far that are totally new. We haven’t seen them running and that just reflects there’s so much new funding around AI.”
As an industry expert, his perspective underscores the accelerating momentum of AI advertising and provides a data-driven snapshot of the AI advertising landscape.
For more AI insights from our CEO, read Todd’s article “Inside the surprising AI Advertising opportunity” for Digital Content Next here.
We recently analyzed key trends and takeaways from MediaRadar’s data on AI advertising spend from January 2022 through August 2023. You’ll discover how much has been invested in AI advertising, which companies are leading the charge, and where the money is going across TV, print, digital, and events.
AI Advertising Spend Has Grown 9% Year-Over-Year
The growth of AI advertising investment has been astounding. According to MediaRadar’s data, over $21 million has been spent by 270 companies to advertise artificial intelligence products since January 2022 across national TV, print, and digital outlets.
So far in 2023 through August, over $9 million has been invested in AI advertising through digital, print, and TV – a 9% increase from the $8.3 million spent during the same period last year. This growth shows that AI is moving rapidly into the mainstream, and advertisers are ramping up budgets to reach this expanding market.
Digital AI Ads Account for 58% of Spend
Of the $10.7 million total AI ad spend this year including major events, digital advertising makes up $6.2 million or 58% of the share.
Within digital, display and paid social are taking the biggest chunks of the budget at $2.3 million and $2.2 million respectively. This demonstrates how crucial digital channels are for reaching potential customers interested in AI products and services.
Q3 2023 Sees Major Investment Spike
The most explosive growth has happened in recent months. In Q3 2023 so far (June through August), nearly $6.8 million has been spent on AI advertising.
This represents a massive 60% increase compared to $4.2 million in Q3 2022. The ramp-up in advertising spend signals that the AI space is rapidly expanding with new product offerings entering the market and being integrated into existing services.
120 AI Advertisers in Summer 2023, Up 87% Year-Over-Year
Along with budgets expanding, the number of active AI advertisers this summer shot up as well. From June – August 2023, 120 AI brands invested in advertising.
This is up an enormous 87% from just 70 AI advertisers during the summer of 2022. The increase in advertisers reflects that most companies are eager to promote their AI capabilities.
Companies Investing $100K+ Account for Majority of Spend
According to MediaRadar data, 93% of the 192 AI advertisers spent less than $100k in 2023 and drove $2 million combined.
However, the 7% that invested over $100,000 made up $7 million. This indicates that AI advertising is already dominated by companies with large budgets and the resources to advertise AI aggressively.
Key Leaders Driving AI Ad Growth
MediaRadar called out several brands leading the charge in AI advertising growth for Q3 2023, including:
- IBM (IBM Watson)
- Salesforce (Slack GPT)
IBM has already recognized the immense potential of AI since 2006, and Watson remains at the forefront of their offerings. Along with newer startups, IBM’s increased investment has set the pace for the rapid growth of the AI industry as more companies follow their lead. IBM’s history and ongoing innovation make them uniquely positioned to drive the AI market forward.
The Future is Bright for AI Advertising
In summary, MediaRadar’s data reveals that AI advertising is entering a high-growth stage as more brands increase budgets to promote products and services focused on artificial intelligence capabilities.
Digital channels account for the majority of spend, though TV and print remain relevant. With no signs of slowing momentum, all indications point to AI advertising investment skyrocketing through the next year and beyond.
Brands looking to tap into the dominance of AI need to follow the leaders identified already deploying innovative campaigns. Now is the time to stake your claim in AI advertising to capture this burgeoning market.