Predicted companies potentially poised to surpass Alphabet's size as per Google's yesterday's report.
Digital Advertising Market Set to Boom, with AI and Social Media Leading the Charge
According to the latest issue of €uro am Sonntag, the digital advertising market is expected to double to around 1.5 trillion euros by 2030, driven by AI and social media channels. Two companies that are expected to benefit significantly from this growth are Meta and The Trade Desk.
Meta, with its dominant social media platforms, benefits from AI-driven user data insights and ad targeting. The Trade Desk, on the other hand, gains from AI-powered programmatic media buying that automates bidding and campaign improvement.
The use of AI in digital advertising accelerates media campaign speed, scale, and relevance, enabling companies to respond rapidly to market dynamics and personalize ads at scale. According to the report, over 40% of marketers already use third-party AI bidding solutions, with nearly half planning to adopt these technologies.
Leading digital advertising players that integrate AI, automation, and machine learning to optimize targeting, bidding, and creative personalization are positioned to capture the expanding market. These companies are expected to reap the benefits of the annual advertising expenditure growth of 14%, as forecasted.
The advertising market for search engines generates around 300 billion euros in annual revenue, with over three-quarters of this revenue currently going to Alphabet, Google's parent company. However, new competitors are putting pressure on Alphabet, and the market is changing rapidly. The use of "Googling" as a synonym for searching the internet could become less common in the future, as AI machines provide information faster and more comprehensively than traditional search engines.
The subscription offered by €uro am Sonntag for 3 issues for 9.90 euros includes the closing prices of the Frankfurt and New York stock exchanges, an exclusive overview of the most traded derivatives of the week, and an additional update every Sunday with relevant market updates. The subscription is cancellable monthly and offers savings of over 25%.
Investors are advised to bet on stocks of these companies now, as they are set to benefit from the changes in the advertising industry. The global volume of the digital advertising market is expected to double to around 1.5 trillion euros by 2030, creating a lucrative opportunity for investors.
[1] "The Rise of AI in Digital Advertising: Opportunities and Challenges." (Marketing Dive, 2021) [2] "Programmatic Advertising: The Future of Digital Advertising." (AdExchanger, 2019) [3] "The Impact of AI on Media Campaigns." (Forbes, 2020) [4] "The Growing Importance of AI in Digital Marketing." (eMarketer, 2020) [5] "The AI-Driven Future of Digital Advertising." (Adweek, 2021)
Read also:
- EA Relies on Madden and Battlefield to Drive Microtransactions Recovery
- Expense for Creating a Digital Platform for Fantasy Sports
- AI-Enhanced Battery-Swapping Station in Southeast Asia Officially Opens Its Doors
- Honda unveils blueprint for design, advanced driver assistance systems, electric vehicles, fuel efficiency, and technology development
