AI leads the charge across marketing & advertising spends in 2024

The year 2024 has been a whirlwind for artificial intelligence (AI) in the advertising and marketing sectors. Globally, AI has stormed into boardrooms and creative briefs alike, transforming not just the way campaigns are executed but also how strategies are conceptualized. And in India, a country that loves its tech innovations as much as its cricket, AI’s influence has been nothing short of revolutionary.

AI-Driven Innovations and Campaigns

Globally, the advertising market is projected to grow by 6.8% year-over-year, reaching approximately $772.4 billion in 2024—a staggering number that’s giving traditional advertising models a run for their money. This growth is fuelled by the increasing adoption of AI technologies across various sectors. In India, digital ad spending is expected to rise by 5.8% in 2025, hitting around $9 billion and making up over 55% of total ad expenditures. Translation? Brands are ditching outdated playbooks for sleek, data-driven strategies that lean heavily on AI to woo consumers.

The rise of programmatic advertising is particularly noteworthy. By 2025, programmatic ads are anticipated to account for more than 70% of digital ad spend in India, with an impressive compound annual growth rate (CAGR) of 10.9% through 2027. This isn’t just about automating ad placements; it’s about AI making those placements sharper, smarter, and savvier. Imagine algorithms tweaking campaigns in real-time to ensure brands hit the bullseye with the right audience at just the right moment.

Globally, the year kicked off with Meta announcing plans to unleash AI-generated users across Instagram and Facebook—a move that left advertisers both intrigued and a tad uneasy. Meanwhile, Adobe rolled out its GenStudio for Performance Marketing, aiming to make content creation and performance measurement as seamless as binge-ordering snacks online. Even advertising giants like Omnicom and WPP took note, shaking up their operations to integrate AI. The message was clear: evolve or evaporate.

In India, brands like Zomato are riding this wave, crafting cheeky, data-fuelled campaigns that get consumers talking. Zomato’s social media antics have practically turned into a masterclass in using AI to combine wit with insights. Mondelez took things a notch higher with its Cadbury campaign featuring an AI-generated Shah Rukh Khan. The campaign proved that AI isn’t here to replace creativity but to amplify it—turning quirky ideas into scalable, measurable, and outrageously effective campaigns.

Generative AI tools like OpenAI’s ChatGPT and Google’s Gemini are also fuelling creativity among Indian marketers. From personalized customer experiences to AI-generated virtual ambassadors, brands are finding innovative ways to stand out. It’s like the ultimate hack for bridging personalization and scale, without breaking the bank.

The Number Game

Now, let’s talk hard numbers, because nothing screams "serious business" like billions of dollars. Around 42% of Indian marketers are dabbling with AI in their strategies, while 21.5% have gone full throttle with high-level integration. Globally, AI marketing tools are projected to rake in billions, with Adobe, Google, and other martech players leading the charge. The global AI market itself is expected to balloon to $305 billion by the end of 2024. In India, the AI market size is projected to reach $6.28 billion by 2030. Clearly, AI isn’t just another buzzword—it’s a bonafide goldmine.

The ad industry’s hiring patterns echo this shift. TeamLease Edtech reported a 9% surge in hiring intent in India’s marketing and advertising sector during the second half of 2024. This uptick is all about the digital advertising boom, skyrocketing content marketing demand, and data-driven strategies—all playgrounds for AI. But here’s the twist: while marketers are swooning over AI, consumers are still on the fence. A Statista survey revealed that 39% of respondents are uncomfortable with AI-generated ads. This love-hate relationship is a hurdle the industry can’t ignore.

Navigating Trust and Ethics

This brings us to trust—the Achilles’ heel of AI-driven strategies. Sure, AI excels at hyper-personalization, but it also runs the risk of creeping people out. A recent survey found that while 73% of marketers are giddy about AI’s potential, over 70% of Indian consumers want brands to disclose when an ad is AI-generated. In a market that values authenticity, even the smartest algorithms can’t fake trust.

Take virtual influencers, for instance. Globally, AI-generated personalities are popping up in campaigns for everything from skincare to sneakers. But in India, the skepticism runs deep. It’s not just about innovation; it’s about ensuring it resonates with the emotional and cultural fabric of the audience. The e4m Martech India Conference 2024 summed it up perfectly: AI should be an ally to human creativity, not its replacement.

As we hurtle toward 2025, one thing is clear: AI isn’t a fleeting trend—it’s a seismic shift that’s redefining advertising. Brands that master the delicate balance between innovation and authenticity will be the ones to watch. Whether it’s leveraging data analytics or crafting hyper-personalized campaigns, the focus will be on creating experiences that not only grab attention but also build loyalty.

Globally, the big guns like Meta and Adobe are setting the stage for an AI-driven future, while India is carving its niche with unique challenges and opportunities. The journey ahead is as exciting as it is daunting. But one thing’s for sure: AI isn’t just changing the game—it’s rewriting the entire playbook. Here’s to a 2025 that’s smarter, sharper, and unapologetically AI-powered.