Artificial intelligence (AI) is going to redefine the global advertising industry, with AI-driven content expected to influence 94.1% of global ad revenue by 2029. This was revealed in the 2024 Global Midyear Advertising Forecast, which forecasted this to happen three years earlier than predicted.
In 2024, digital advertising remains the dominant force, accounting for 70.6% of total ad revenue, equivalent to $699.0 billion. Retail media is leading this growth, with platforms like Jumia and Konga in Nigeria showcasing how advertisers target consumers based on shopping behaviors. The rise of Connected TV (CTV) is another notable trend. CTV, encompassing smart TVs and streaming devices, allows advertisers to deliver data-driven ads to specific audiences. Ad revenue from CTV is forecasted to grow by 20.1% year-over-year in 2024, reaching $38.3 billion as more viewers shift to platforms like Netflix and YouTube.
Traditional advertising platforms like television, radio, print, and cinema are losing ground as digital media thrives. However, out-of-home (OOH) advertising, such as billboards and transit ads, has rebounded due to increased public engagement and visibility in public spaces.
AI is also reshaping other sectors. A report by Public First, commissioned by Google, highlights that AI could contribute over $30 billion to Africa’s economy within the next decade. In healthcare and agriculture, AI is already improving diagnostic accuracy and enabling precision farming techniques. Google’s tools, including Search, Maps, and YouTube, generated $16 billion in economic activity in 2023.
To harness AI effectively, experts are stressing the importance of strong cloud infrastructure, STEM education, and creating diverse datasets to support responsible and ethical AI development. As AI continues to revolutionize advertising and beyond, its role in shaping the global economy becomes increasingly critical. By 2029, AI-driven innovation will be the backbone of the advertising industry, marking a new era of technological advancement.
