Popov also predicts a shift in digital advertising towards AI-powered contextual advertising as third-party cookies become obsolete. Despite initial hesitations, he believes that AI-powered contextual advertising solutions are emerging as a viable alternative, offering tailored ads without requiring identifiable information. He also notes that the global market for contextual advertising is projected to grow at a CAGR of 13.8% from 2022 to 2030. However, he acknowledges the possibility of unforeseen innovations altering the course of digital advertising.
Key takeaways:
- Expectations for AI in advertising were high in 2023, but the reality did not meet these expectations. However, 2024 is predicted to be the year when AI will finally have a significant impact on the industry, particularly in areas such as automated video generation and the use of machine learning models in predicting and responding to human behavior.
- AI safety and responsible use have been major focuses, with the U.K. hosting an AI Safety Summit and the Bletchley Declaration, as well as legislation from the EU and the U.S., helping to establish better guidelines for AI use.
- Contextual advertising, which has been stuck in limbo, is expected to undergo a generational leap powered by AI in 2024. This is due to the impending deprecation of third-party cookies, forcing advertisers to look for alternative solutions.
- The global market for contextual advertising is projected to grow at a CAGR of 13.8% from 2022 to 2030, indicating a promising future for this form of advertising.