AI to dominate ad platforms by 2028, Gartner

Advertising platforms are using AI to determine which advertisements are shown, which audiences are targeted and how campaigns are priced.

More than 70 per cent of global advertising spend and 80 per cent of US advertising spend will flow through self-service advertising platforms influenced by artificial intelligence by 2028, according to Gartner.

The research firm said AI is increasingly embedded in advertising platforms, influencing how media is bought, priced and delivered rather than being limited to generative AI tools used to create advertising content.

AI plays a growing role in media buying

According to Gartner, advertising platforms are using AI to determine which advertisements are shown, which audiences are targeted and how campaigns are priced.

The company said marketers and agencies are increasingly managing campaigns through platform interfaces and application programming interfaces (APIs), with AI expected to play a greater role in ad delivery, audience selection and pricing decisions over time.

Gartner urges greater transparency

Eric Schmitt, Vice President Analyst, Gartner Marketing: "AI is not merely helping marketers execute campaigns faster. Advertising platforms are using it to exert greater influence over how marketers reach their audiences, what they pay, and the outcomes they achieve.

"AI was expected to make advertising more efficient, but improved platform economics does not necessarily translate into lower costs for the advertiser. CMOs need independent evidence that they're getting the returns they expect."

Recommendations for marketing leaders

Gartner recommends that chief marketing officers prioritise the advertising platforms most important to their business, while maintaining a broader portfolio of additional platforms to extend reach and test performance.

The company also advises directing more investment towards platforms that support transparency and independent measurement, enabling marketers to compare performance across channels.

Eric Schmitt: "The more influence AI has over advertising decisions, the more important independent measurement becomes. CMOs need confidence that platform performance reflects real business impact, not just platform-reported results."

www.gartner.com

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