Market Overview
The
Global Generative AI in Marketing Market is expected to reach a value of
USD 3.3 billion by the end of 2024, and it is further anticipated to reach a market value of
USD 33.7 billion by 2033 at a CAGR of 29.6%.
Generative
artificial intelligence (AI) has become a foundation in modern marketing strategies, allowing businesses to develop compelling content customized to their target audience. By analyzing customer behavior and data patterns, generative AI helps marketing teams in developing relevant and well-structured content across multiple industries like automotive, BFSI, media and entertainment, IT, telecommunication, and healthcare, which is driving the growth of generative AI in the marketing market, reflecting its versatility and effectiveness.
The adaptability of generative AI expands beyond content creation, improving multichannel marketing efforts by optimizing content for many platforms and languages. Through translation capabilities, businesses can expand their reach to international markets while making sure cultural relevance through localization. AI-generated content is easily customized for websites, social media, email marketing, and more, ensuring consistency and relevance across channels. Also, AI-powered tools curate content from different sources, allowing marketers to share trending & relevant content, enhancing their online presence and promoting engagement with their audience.
Further, with the growing demand for personalized experiences, generative AI allows marketers to deliver customized content on an individual level. By using customer data, such as purchase history and browsing behavior, businesses can provide personalized email messages, landing pages, and product recommendations. For example, a clothing retailer can use generative AI to provide personalized product suggestions based on each customer's preferences, ultimately improving customer engagement and driving sales, which not only fosters customer loyalty but also makes sure that marketing communications remain relevant and impactful in a competitive digital landscape.
Key Takeaways
- Market Growth: The Generative AI in Marketing Market size is expected to grow by 29.6 billion, at a CAGR of 29.6% during the forecasted period of 2025 to 2033.
- By Component: The software segment is expected to lead in 2024 with a major & is anticipated to dominate throughout the forecasted period.
- By System: Text models system is expected to get the largest revenue share in 2024 in the Generative AI in Marketing market.
- By Application: Content Generation is expected to lead the Generative AI in Marketing market in 2024
- By End User: Retail and E-commerce segment is expected to get the largest revenue share in 2024 in the Generative AI in Marketing market.
- Regional Insight: North America is expected to hold a 42.6% share of revenue in the Global Generative AI in Marketing Market in 2024.
- Use Cases: Some of the use cases of Generative AI in Marketing include product generation & recommendation, content creation and marketing, and more.
Use Cases
- Product Generation and Recommendation: Generative AI can analyze user choice, purchase history, and browsing behavior to develop personalized product recommendations. By creating product descriptions, images, and even 3D models, it can support customers discover items personalized to their tastes, ultimately driving sales and improving user satisfaction.
- Virtual Try-On and Customization: E-commerce platforms can use generative AI to allow virtual try-on experiences for clothing, accessories, and cosmetics. By creating realistic simulations of how products would look on a user, including factors like body shape & skin tone, it improves the decision-making process and lowers the likelihood of returns. Moreover, AI-driven customization tools can enables users to customize products according to their preferences, like engraving on jewelry or customizing clothing designs.
- Content Creation and Marketing: Generative AI can help in content creation for marketing purposes, creating compelling product descriptions, ad copy, and social media posts. By looking into trends and user engagement data, it can develop content optimized for specific target audiences, helping e-commerce businesses to easily communicate with their customers and drive engagement.
- Supply Chain Optimization and Forecasting: Generative AI algorithms can analyze large volume of data related to supply chain operations, like inventory levels, supplier performance, and market demand, to optimize inventory management and forecasting. By designing predictive models, it allows businesses to predict demand fluctuations, optimize stock levels, and streamline logistics processes, ultimately lowering costs and improving operational efficiency.
Market Dynamic
Driving Factors
In current dynamic marketing landscape, personalized campaigns have become important for businesses looking for deeper connections with their target audience. By customizing content to individual preferences and behaviors, organizations can promote loyalty and improve conversion rates. Generative AI in Marketing allows businesses to analyze large data for valuable insights into customer habits, creating customized experiences that resonate.
Moreover, AI-generated content transforms the content creation process, providing efficiency and scalability. By automating the generation of articles, blogs, and social media posts, businesses can save time and maintain quality, which lines up operations, allowing marketers to aim on strategic initiatives while maximizing engagement and ROI across diverse marketing channels.
Opportunities
Generative AI in marketing has found a strong integration in AR/VR technologies, allowing businesses to design personalized and interactive experiences for their audience. By integrating Generative AI with AR/VR capabilities, marketers can deliver memorable brand interactions, setting themselves apart from competitors, which not only enhances engagement but also gives valuable insights into user behavior within virtual environments, guiding data-driven decisions.
In addition, Generative AI improves influencer marketing by using data-driven algorithms to identify the most important influencers for a target audience. By looking into large datasets, including social media trends and user sentiment, businesses can make better choices, optimizing the impact of their marketing campaigns. Moreover, the smooth integration of Generative AI with
chatbots and virtual assistants improves customer service by delivering personalized responses and product recommendations, strengthening operations while improving the overall consumer experience.
Restraint Factors
Privacy concerns come out as a key challenge surrounding the adoption of Generative AI in marketing. With growing concerns in consumers regarding data usage, compliance to strict privacy regulations like GDPR becomes imperative. Marketers using Generative AI must look into these regulations carefully, ensuring compliance and responsible handling of personal data.
Further, integrating Generative AI into existing marketing frameworks creates significant hurdles. Legacy systems may lack the capacity to include AI technologies, requiring investments in infrastructure and staff training. Consolidating disparate data sources also creates challenges, requiring smooth coordination across departments and careful planning to ensure effective AI-driven campaigns. Despite criticism regarding the perceived absence of a human touch, businesses can reduce this concern by using AI to streamline repetitive tasks, enabling marketers to aim on strategic decision-making and personalized customer interactions.
Trends
In the digital age, content creation remains important, prompting businesses to look into innovative solutions. AI-driven content creation tools providing a compelling result to this demand, using generative AI algorithms to develop captivating material across many platforms. From blog posts to email campaigns, these tools streamline the creation process, improving efficiency & productivity. Social media's significance as a marketing tool highlights the need for businesses to stay attuned to consumer sentiment. AI algorithms, equipped with
Natural Language Processing capabilities, looks into large volume social media datasets, providing valuable insights into consumer preferences and trends, informing strategic marketing decisions.
Further, visual content plays a major role in effective marketing strategies. Generative AI uses the creation of visually appealing graphics and designs that align with brand identity. Whether in advertisements or product images, AI-generated visuals allow businesses to differentiate themselves and support stronger connections with their audience, driving engagement and brand
Research Scope and Analysis
By Component
The software segment is expected to lead the generative AI in marketing market in 2024, driven by a major trend of automated content production customized for multichannel campaigns. AI-powered systems streamline content creation across many channels like emails, social media, and websites, making sure of consistency and effectiveness in brand messaging, which not only saves marketers valuable time but also improves audience engagement by delivering customized content for each channel, maximizing impact and audience reach.
Further, the service segment is expected to show significant growth during the forecast period. Mainly, there's a growth in innovative conversational chatbot platforms using generative AI and natural language processing for on time client interactions. In this space, service providers provide chatbot design and training services to make sure alignment with a company's brand voice and customer needs, which enhances customer experiences by providing human-like conversations, supported by professional services that optimize chatbot performance and efficacy in meeting customer demands.
By System
The global generative AI in marketing market is segmented based on system type into text models and multimodal models. Among these, text models, which includes GPT-3, LaMDA, and LLaMA, is expected lead the market in 2024 due to their ability to generate high-quality text for various applications like language translation, summarization, and question answering. LaMDA differentiates itself by considering more suggestions in open-ended conversations, while LLaMA provides upgraded features with fewer parameters. These text models collectively drive growth in the system-type segment, meeting diverse text generation needs in marketing scenarios.
Further, multimodal models, consisting of innovations like GPT-4, Stable Diffusion, DALL-E, and Progen, are expected for significant growth during the forecast period. GPT-4, being multimodal, supports text generation from images or textual inputs, contributing to the expansion of the multimodal segment. As businesses largely utilize multimedia content in their marketing strategies, the capabilities provided by multimodal models are expected to play a major role in driving market growth, allowing the creation of dynamic and engaging marketing materials.
By Application
The Content Generation segment is expected to lead the generative AI in marketing market in 2024, as it involves the creation of video scripts & storyboards using AI algorithms. These platforms inspect marketing objectives and product details to generate scripts & visual frameworks for promotional videos, streamlining the video production process and making marketers to look into creativity. Also, with the growth in video content consumption, AI-generated scripts & storyboards allow the creation of engaging visual content that resonates with audiences, enhancing marketing impact.
Further,
generative AI is reshaping Search Engine Optimization (SEO) strategies by delivering high-quality and relevant content. AI-powered systems deliver optimized articles, blog posts, and website content infused with relevant keywords, aligning closely with current SEO standards, which helps marketers in maintaining a consistent flow of valuable content, supporting their online visibility and driving organic traffic growth. As businesses prioritize content quality, generative AI emerges as a scalable solution to meet the changing demands of SEO practices effectively.
By End User
Generative AI in marketing is a transformative force across many industries, with prominent applications in Retail & E-commerce, Media and Entertainment, Automotive and Transportation, BFSI, and IT & Telecommunications, among others. Among these, the Retail and E-commerce sector is set to lead the market in 2024, driven by the higher demand for personalized shopping experiences. Using AI-powered systems, retailers can inspect customer preferences and behavior to deliver customized product recommendations, reducing customer engagement and promoting brand loyalty.
Further, Media and Entertainment comes out as another key industry using generative AI for marketing purposes which is expected to grow significantly in coming years, where AI algorithms generate different content forms like music, videos, images, and texts, catering to the evolving demands of digital marketing strategies. Mainly, the rising adoption of AI-generated video and music content increases the marketing efforts, driving the growth of generative AI within the media and entertainment sector. In addition, IT and Telecommunications are experiencing a revolution through generative AI applications, notably in services like chatbots and text generation, improving customer interactions and optimizing marketing campaigns.
The Generative AI in Marketing Market Report is segmented on the basis of the following:
By Component
By System
- Text Models
- Multi-modal Model
- GPT-4
- DALL-E
- Stable Diffusion
- Progen
By Application
- Content Generation
- Text Generation
- Image/Video Generation
- Audio Generation
- Search Engine Optimization
- Lead Nurturing & Lead Scoring
- Reporting & Analytics
- Social Media Marketing
- Others
By End User
- Retail & E-commerce
- Media & Entertainment
- IT & Telecommunication
- BFSI
- Healthcare
- Automotive & Transportation
- Others
Regional Analysis
North America is expected to dominate the generative AI in marketing market in 2024, capturing a large revenue
share of over 42.6%, which is mainly attributed to the presence of various major players in countries like the United States and Canada. Further, the region's market growth is further driven by the growth in adoption of generative AI in marketing across many businesses, highlighting its major role in driving innovation and competitiveness in the North American market. As companies adopting AI-driven marketing solutions to improve customer engagement and optimize marketing strategies, North America remains at the lead of using advanced technologies to achieve business objectives.
Further, the Asia Pacific region comes out as the fastest-growing market for generative AI in marketing during the forecast period, which is driven by a growth in demand for AI-based solutions across different industry verticals. With a growth in number of marketing businesses in the region adopting generative AI technologies to stay competitive and meet changing consumer needs, Asia Pacific provides significant opportunities for market growth and innovation. As the region continues to show technological development and digital transformation, the adoption of generative AI in marketing is anticipated to play a major role in shaping the future of marketing practices and strategies across Asia Pacific.
By Region
North America
Europe
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
Competitive Landscape
The global generative AI in marketing market experiences a competitive landscape due presence of many players looking to innovate and capitalize on emerging opportunities. Key factors driving competition like development in AI technologies, the scalability and efficiency of content generation tools, and the ability to meet to different industry verticals.
Market players compete for market share by provide complete solutions that includes content creation, personalization, and multichannel marketing capabilities. In addition, partnerships and collaborations are common strategies to expand market reach and improve product offerings. As need for AI-driven marketing solutions constantly increases, competition intensifies, making companies to differentiate themselves through superior technology, service quality, and customer-centric approaches.
Some of the prominent players in the global Generative AI in Marketing Market are:
- Microsoft Corp
- IBM Corp
- Google LLC
- AI
- MOSTLY AI
- Synthesis AI
- Genie AI Ltd
- Paige.AI
- Rephrase.AI
- Amazon Web Services
- Other Key Players
Recent Developments
- In April 2024, Google Cloud Next, WPP and Google Cloud announced a collaboration to change marketing style through the integration of Google’s Gemini models with WPP Open, WPP’s AI-powered marketing operating system which is being used by over 35,000 of its people and adopted by key clients including The Coca-Cola Company, L’Oréal and Nestlé. Further, by integrating Google's deep expertise in data analytics, generative AI (gen AI) technology and cyber security with WPP's end-to-end marketing capabilities, global creative scale and understanding of its clients’ brands, this partnership seeks to drive a step-change in marketing efficiency and effectiveness.
- In March 2024, Adobe launched Adobe GenStudio, which is a major product innovations that would allow brands to optimize their entire content supply chain with generative AI. For most organizations, their content supply chain and the end-to-end business process, which needs to deliver the content needed for marketing campaigns and personalized customer experiences is a web of disconnected workflows, teams and systems that often break down, but the demand for content that is personalized and engaging is also growing at the same time.
- In January 2024, Microsoft Corp launched its latest generative AI and data solutions for retailers, covering the entire retail shopper journey, allowing personalized shopping experiences, empower store associates, and integrating retail data to improve audience targeting. With copilot templates on Azure OpenAI Service, retail data solutions in Microsoft Fabric, copilot consists of in Dynamics 365 Customer Insights, and Retail Media Creative Studio in the Microsoft Retail Media Platform, retailers can smoothly integrate copilot experiences into every step of the shopper journey.
- In June 2023, Salesforce unveiled its latest generative AI product offerings named Marketing GPT and Commerce GPT. Among which, Marketing GPT, will allow marketers to automatically generate personalized emails, smarter audience segments, and marketing journeys. Further, with Commerce GPT, brands would deliver personalized shopping experiences and customized offers that adapt to their customers’ needs, using GPT-powered dynamic buying journeys.
- In May 2023, Google’s launched a range of new generative AI tools for brands at its Google Marketing Live event, like new ad creation options, customized Search ads based on your website text, & more. Further, it is rolling out a new process that will allow advertisers to generate background visuals for their product shots, which will provide more ways to make your content stand out in user feeds.
Report Details
| Report Characteristics |
| Market Size (2024) |
USD 3.3 Bn |
| Forecast Value (2033) |
USD 33.7 Bn |
| CAGR (2023-2032) |
29.6% |
| Historical Data |
2018 – 2023 |
| Forecast Data |
2024 – 2033 |
| Base Year |
2023 |
| Estimate Year |
2024 |
| Report Coverage |
Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc. |
| Segments Covered |
By Component (Service and Software), By System (Text Models and Multi-modal Model), By Application (Content Generation, Search Engine Optimization, Lead Nurturing & Lead Scoring, Reporting & Analytics, Social Media Marketing, and Others), By End User (Retail & E-commerce, Media & Entertainment, IT & Telecommunication, BFSI, Healthcare, Automotive & Transportation, and Others) |
| Regional Coverage |
North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
|
| Prominent Players |
Microsoft Corp, IBM Corp, Google LLC, AI, MOSTLY AI, Synthesis AI, Genie AI Ltd, Paige.AI, Rephrase.AI, Amazon Web Services, and Other Key Players |
| Purchase Options |
We have three licenses to opt for: Single User License (Limited to 1 user), Multi-User License (Up to 5 Users), and Corporate Use License (Unlimited User) along with free report customization equivalent to 0 analyst working days, 3 analysts working days and 5 analysts working days respectively. |
Frequently Asked Questions
The Global Generative AI in Marketing Market size is estimated to have a value of USD 3.3 billion in 2024 and is expected to reach USD 33.7 billion by the end of 2033.
North America is expected to have the largest market share in the Global Generative AI in Marketing Market with a share of about 42.6% in 2024.
Some of the major key players in the Global Generative AI in Marketing Market are IBM Corp, Microsoft Corp, Google LLC, and many others.
The market is growing at a CAGR of 29.6 percent over the forecasted period.