AI to power 75% of digital advertising for user targeting

Online retail technology and IBMDigital advertising spend will grow to $420 billion in 2022 from $184 billion in 2017 at a CAGR of 18 percent over the next five years.

These figures include advertising spend across mobile, desktop, wearables and DOOH (Digital-out-of-Home) signage.

Annual growth of online advertising spend will slow to only 4 percent globally by 2022, owing to the impact of ad blocking adoption across desktop devices and the increasing usage of mobile devices as the primary means for browsing.

Ad platforms will seek a greater degree of control over the types of ads being blocked through involvement in ‘Acceptable Ad’ initiatives.

Through these initiatives, platforms are beginning to shift focus to encouraging the use of adverts that are not blocked. While revenue loss owing to ad blockers will account for 17 percent of online advertising spend in 2017, this loss will be mitigated and increase by only 2 percent over the next five years, reaching 19 percent by 2022.

Nearly 75 percent of all delivered digital ads will use AI as a means of user targeting in 2022. Data sharing partnerships will enable publishers to increase targeting efficiency, utilising acquired data, such as geolocation, browsing cookies, and cross-device identification, to provide end-users with highly tailored digital ads.

“The critical factor for maintaining revenues lies in increasing the quality of experience for browsers. Whereas ad blocking will eliminate intrusive ads, platforms leveraging AI for targeting will deliver more personal and accepted ads,” Juniper Research author Sam Barker said.

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