Growing with a CAGR of 26.64%, the market size of AI in marketing is expected to reach USD 31.72 billion by 2026, according to Technavio’s forecast. The market growth is primarily fuelled by an increase in internet usage and the digitisation of businesses. Digitalisation aims to automate business through data collection and arrangement, this improves the quality of data for innovation.
An increase in digitisation has led to greater internet penetration across the globe. At the same time, AI is becoming an increasingly popular tool on social media. Hubspot and Pattern89 are some marketing services using AI for ads on platforms like Instagram and Facebook. AI-powered platforms give intelligent recommendations for improving engagement and reach for advertisements.
Some other factors that will fuel the growth of the market include:
- Increased usage of cloud-based services and applications
- Growing demand for Virtual Assistants
- Urgent need for marketing tactics aimed at customers.
As far as the generation of revenue is concerned, on-premise segment growth is required.
Mainly, direct access to customers is opened up for marketers who can view them live using on-premise marketing. It is similar to how businesses use in-shop marketing to get hold of customers.
Marketers employ these methods when people come to purchase items. Vehicle dealers, grocery shops. Showrooms, Department stores, and restaurants among other wholesalers and retailers use on-premise marketing for selling their services and goods.
These advantages of on-premise marketing will further drive the growth of AI in the marketing space in the coming years.