AI Ad Spending Has Surged This Year

The AI boom is being supported by advertisers through AI-related spending.

According to a new analysis by ad intelligence and sales enablement platform MediaRadar, they have spent over four times as much on AI product marketing so far in 2023 as they did during the same period in the previous year.

Up from $10.9 million through the third quarter of 2022, advertisers have invested $40.2 million to promote AI products and solutions through September 2023. AI advertising spent $35 million in 3Q ’23 alone, a 550% increase over summer 2022.

Tech firms of all sizes have introduced new genAI products and updated existing platforms with AI capabilities throughout the year. Many are now investing in advertisements to market these updates and items.

large consumers. The MediaRadar data set contained information on over 360 marketers. Top advertisers included Microsoft (Microsoft 365 Copilot), Dialpad, Salesforce (Slack GPT), IBM (IBM Watsonx), and YourHana.AI.

Six percent of advertisers, or over $36 million in ad spend, used AI to create commercials that cost more than $100,000.

TV and online. MediaRadar discovered that IBM Watsonx was the main driver of Q3 investments in TV (54% of spend) and online video (32%).

In the world of digital media, online video made $11.7 million. Approximately $3 million was spent on paid social media and digital display, respectively.

This year’s expenditure allocation looks like this:

AI Summer Surge in MediaRadar Advertising Spending. According to a MediaRadar survey, there were 180+ AI marketers in Q3 2023, up 135% YoY from about 80 during the same period in 2022.

In July 2023, there was a nearly 200% month-over-month increase to $2.9 million, while in August, there was a 19% year-over-year decline to $3.5mm.

August saw a decrease of over 730% by September. IBM Watsonx increased its ad budget and attracted new sponsors, which drove this.

It appears the commercials are effective. According to a Matter Communications poll, nearly 85% of marketing decision-makers and CMOs claim they now utilize AI solutions, with 41% utilizing them frequently. Significant growth is anticipated given the broad use of AI, its awareness through advertisements and industry conversations, and its intention to spend even more in the technology in the upcoming year. If marketing professionals are genuinely incorporating these technologies into their workflow and want to do so even more in the upcoming year, then it’s not just a matter of exaggerated expectations and hype.

AI Ad Spending Has Surged This Year

The AI boom is being supported by advertisers through AI-related spending.

Download The Radiant App To Start Watching!