Despite warnings of an impending AI downturn, companies have been ramping up advertising to help market various AI products and services. According to data provided by MediaRadar, companies spent more than $107 million on ads marketing AI-related products and services in the first half of 2024, which is more than 19 times the $5.6 million total spent in the same period last year. The total number of companies buying ads to market AI products also increased significantly, from 186 in 2023 to 575 so far in 2024. Notably, three companies – IBM, Microsoft, and GoDaddy – accounted for nearly half of the total ad spend, with a combined $52 million, or 48% of total spend through June 2024.
TV advertising was the most popular medium for AI-related ad spend, accounting for 54% of the total. Online video advertising followed with over $15 million, making up 14% of total ad spend, while digital display ads captured 13% at more than $14 million. Paid social advertising exceeded $13 million, accounting for 12%, with a focus on ad buys via platforms like Twitter. The remaining 7% was a mix of print, native, OTT, and mobile advertising.
Tech companies, including giants like Adobe, Salesforce, Qualcomm, and Apple, as well as various AI startups and mobile apps, have been actively pitching AI in paid media. Some have utilized out-of-home ads on taxis and billboards, while others have run campaigns across social media and streaming platforms. During the Summer Olympics, major brands like Microsoft, Google, Intel, and Alibaba have incorporated AI-related messaging in their paid media or sponsorship deals.
Microsoft, for example, aired a new commercial for Copilot, its flagship AI platform, during the Olympics opening ceremony. The ad, titled „They Say,“ showcases athletes using Copilot in their daily lives to enhance their performance. Panay Films, a production company and creative agency, produced both Microsoft ads with the goal of making AI more relatable and demonstrating how products like Copilot can help individuals improve their lives.
However, not all AI ads have been received positively. Google’s commercial, „Dear Sydney,“ which features Google Gemini, has faced criticism for relying too heavily on AI and downplaying creativity. Despite this, Google has maintained that AI can enhance human creativity but can never replace it. Google is also the „Official Search AI Partner“ of Team USA, with various AI features being integrated into NBCUniversal’s coverage of the Paris Olympic and Paralympic Games.
Other tech companies like Intel and Alibaba have also found ways to integrate their AI technologies into the games. Intel, the „Official AI Platform Partner“ for Paris 2024, is using AI to provide personalized insights to fans and help broadcasters generate real-time highlights. Alibaba is showcasing its intelligent shopping assistant at the Olympics, allowing attendees to create personalized avatars and content.
Eric Haggstrom, vp of business intelligence at Advertiser Perceptions, has raised questions about whether the increase in AI ad spending is truly incremental to the market or if it is just a reallocation of budgets from other advertising products. With the rise of new AI products in the market, Haggstrom anticipates a significant increase in ad spending. Whether AI ad spending will follow the trend of fast rise and sudden drop like crypto or sustain momentum like sports betting remains to be seen.
In conclusion, the surge in AI-related ad spending reflects the growing interest and investment in AI products and services. As tech companies continue to innovate and introduce new AI applications, advertising will play a crucial role in educating consumers and driving adoption. The future of AI ad spending will depend on how companies navigate this evolving landscape and leverage AI to enhance human experiences.