From local to global, the advertising industry is racing to better understand and leverage AI’s capabilities headed into 2025. If 2023 was the year AI became a household name, then it appears 2024 is the year media bought in – in a major way.
According to Forrester, 91% of US ad agencies are either using or exploring GenAI, with 78% of larger agencies (those with over 200 employees) actively utilizing the technology, compared to 53% of smaller agencies.
In June, McKinsey released a survey on AI showing global adoption has risen to 72%, up from around 50% in previous years. 65% of respondents now use generative AI regularly, noting benefits like cost reduction and revenue growth, with generative AI being increasingly deployed in marketing and sales.
Generative AI is gaining traction across various industries, including advertising, where it helps streamline tasks like market research, data analysis, and content creation.
Two leading advertising agencies, Publicis and WPP, have committed significant investments toward generative AI technology, per Marketing Brew. Publicis plans to spend $326 million over three years and is experimenting with using GenAI in its PXP division to localize commercials by creating voice clones of actors and translating content into 29 different languages.
Meanwhile, WPP has pledged $318 million annually, aiming to integrate AI into its services and enhance its digital capabilities.
In June 2023, Accenture announced a $3 billion investment in AI reaching to 2026. Since then, Accenture has partnered with Nvidia, Adobe, Microsoft, and Google to advance its AI initiatives. The company has also invested in GenAI platforms, such as Writer, to help businesses build AI-powered applications.
At Accenture Song, AI is already being utilized for tasks like market research and data analysis.
For the fiscal year ending August 31, Accenture reported $3 billion in bookings due to GenAI, contributing to its overall $81.2 billion in new bookings, with Accenture Song’s AI push accounting for a growing share of revenue, as noted by Adweek.
In radio, Audacy has introduced AI and machine learning to improve contextual advertising in its podcasts by transcribing and categorizing content into genres like business, entertainment, and sports. iHeartMedia, which also uses AI for podcast transcription, instituted plans to expand its use of the technology to translate podcast audio for international audiences by the end of the year, according to Digital Audio Group CEO Conal Byrne.
As more marketing organizations invest in AI technologies, the ability to deliver personalized, efficient, and engaging content will likely become a standard expectation. For brands looking to stay ahead, embracing AI isn’t just an option – it’s an essential part of evolving in a competitive digital world.