Seven Things We Learned About AI in Digital Advertising from IAB’s Report
If you want to stay in the upper echelon of marketers – get ready to dive into new technology. Right now, the next big thing is AI. Recently, IAB Europe, in collaboration with Microsoft Advertising, released a groundbreaking report titled ‘Understanding the Adoption and Application of AI in Digital Advertising.‘
Straightforward (ie. boring)This report unpacks how Generative AI is revolutionizing the digital ad industry. From widespread adoption rates to the transformative potential of AI in creative development, the findings are nothing short of enlightening.
So, what exactly did this comprehensive study reveal? Well, we’re about to break down the seven key takeaways you need to know. Let’s get started.
1. AI is everywhere
GenAI is rapidly becoming a staple in digital advertising, with 91% of respondents indicating they have used, are using, or are experimenting with it. That’s nearly every marketer you know.
Notably, 38% of businesses have integrated genAI into their daily operations. If you think it’s a passing fad – stop being naive. The future looks even more AI-driven, with 90% of the businesses not currently utilizing genAI planning to test it within the next six months. Moreover, nearly half of all respondents foresee a significant increase in their use of genAI over the next year. Clearly, AI is no longer a futuristic concept but a present-day necessity for industry professionals.
2. Money is tight, but AI is commanding budgets
The financial commitment to AI is evident, with 41% of respondents dedicating specific budgets to AI. Money is where the heat is. Companies are not just dabbling in AI—they’re betting big on its potential to drive better results and innovation in advertising.
3. Talent is key
Sure, everyone wants to adopt AI, but we need real human practitioners to adopt the tech. Half of the surveyed companies actively fostering AI talent through upskilling or hiring, and nearly one-third dedicating time for AI education.
Additionally, businesses are partnering with AI consultancies, developing task forces, and implementing policies for AI use. This trend highlights that organizations are not just investing money but are also building comprehensive frameworks to ensure successful AI adoption, emphasizing the importance of internal capabilities for maintaining a competitive edge.
4. Content creation gets a boost
Generative AI takes the weight off when it comes to content development. More than two-thirds (69%) of respondents are using Gen AI to streamline their processes. Among advertising professionals, this number rises to three-quarters (75%), showcasing the widespread integration of AI into daily workflows.
By automating repetitive tasks and generating fresh ideas, Generative AI not only boosts productivity but also allows content creators to focus on higher-level creative work. This technology is proving to be an invaluable tool for driving innovation and maintaining a competitive edge in the fast-paced world of content creation.
5. Creatives love AI
More than half (52%) of the respondents are applying Generative AI to develop creatives. This isn’t about replacing human creativity but augmenting it—using AI to push the boundaries of what’s possible in ad design and concept development. By leveraging AI, marketers can craft highly compelling images, videos, audio, and other formats that captivate users across various digital environments.
6. Education matters
A whopping 89% of respondents highlight the need for more training initiatives on Generative AI. As AI continues to evolve, staying ahead of the curve requires continuous learning. Two-thirds (67%) believe Gen AI gives their company a competitive edge, and 79% expect it will make building and managing campaigns easier.
The call for education underscores the industry’s recognition that understanding these tools is crucial. Knowledge is power, especially in such a fast-moving field, and enhancing comprehension of Gen AI’s capabilities and functions is essential for maximizing its benefits.
7. Transformative potential
Generative AI is changing the game in digital advertising. By automating complex tasks and offering deeper insights, it lets creative teams focus on strategy and innovation.
Users are seeing its potential for developing content and creatives—not just improving efficiency. However, to fully benefit, more education and clear distinctions between human and AI work are needed to build trust. Regardless, Gen AI remains poised to revolutionize how brands connect with audiences, make intelligent decisions, and craft captivating ads.
Elevator pitch
IAB Europe’s report paints a vivid picture of an industry in flux—driven by the rapid adoption of AI. Marketers are not just observing this shift; they are actively participating, investing, and learning. The report highlights how AI is becoming an indispensable part of daily operations, driving innovation and efficiency across the board.
