Generative Artificial Intelligence (AI) in Digital Marketing Market Opportunities and Strategies Report 2025-2034: Top 10 Players Control Just 15.2%, with IBM Leading at 3.48% Share

The global generative artificial intelligence (AI) in digital marketing market reached a value of nearly $2.48 billion in 2024, having grown at a compound annual growth rate (CAGR) of 30.83% since 2019. The market is expected to grow from $2.48 billion in 2024 to $9.46 billion in 2029 at a rate of 30.69%. The market is then expected to grow at a CAGR of 29.98% from 2029 and reach $35.12 billion in 2034.

Growth in the historic period resulted from the increased adoption of digital channels, rise in e-commerce, rise in internet and smartphone penetration and advancements in AI technology. Factors that negatively affected growth in the historic period was data privacy and security concerns and dependence on high-quality data for accuracy. Going forward, demand for cost-effective marketing solutions, demand for personalization, growing prominence of video content and growing volume of consumer data will drive the growth. Factor that could hinder the growth of the generative artificial intelligence (AI) in digital marketing market in the future include risk of misinformation and deepfake content and technical complexity.

The global generative artificial intelligence (AI) in digital marketing market is fairly fragmented, with a large number of small players operating in the market. The top ten competitors in the market made up to 15.2% of the total market in 2023. International Business Machines Corporation (IBM) was the largest competitor with a 3.48% share of the market, followed by Google LLC with 2.03%, Microsoft Corporation with 1.53%, Meta Platforms Inc. with 1.39%, Amazon.com Inc. with 1.32%, Interpublic Group of Companies Inc. with 1.17%, Salesforce Inc. with 1.15%, HubSpot Inc. with 1.15%, DataRobot Inc. with 1.06% and NVIDIA Corporation with 0.94%.

North America was the largest region in the generative artificial intelligence (AI) in digital marketing market, accounting for 33.66% or $836.05 million of the total in 2024. It was followed by Asia-Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the generative artificial intelligence (AI) in digital marketing market will be Asia-Pacific and Middle East where growth will be at CAGRs of 36.09% and 33.70% respectively. These will be followed by Africa and South America where the markets are expected to grow at CAGRs of 32.43% and 31.63% respectively.

The generative artificial intelligence (AI) in digital marketing market is segmented by component into software and services. The software market was the largest segment of the generative artificial intelligence (AI) in digital marketing market segmented by component, accounting for 63.56% or $1.57 billion of the total in 2024. Going forward, the services segment is expected to be the fastest growing segment in the generative artificial intelligence (AI) in digital marketing market segmented by component, at a CAGR of 33.47% during 2024-2029.

The generative artificial intelligence (AI) in digital marketing market is segmented by application into personalization, content generation, social media management, advertising optimization, predictive analysis and other applications. The content generation market was the largest segment of the generative artificial intelligence (AI) in digital marketing market segmented by application, accounting for 32.93% or $817.81 million of the total in 2024. Going forward, the content generation segment is expected to be the fastest growing segment in the generative artificial intelligence (AI) in digital marketing market segmented by application, at a CAGR of 35.79% during 2024-2029.

The generative artificial intelligence (AI) in digital marketing market is segmented by channel into search engine marketing, email marketing, social media marketing, mobile marketing and other channels s. The search engine marketing market was the largest segment of the generative artificial intelligence (AI) in digital marketing market segmented by channel, accounting for 47.88% or $1.18 billion of the total in 2024. Going forward, the mobile marketing segment is expected to be the fastest growing segment in the generative artificial intelligence (AI) in digital marketing market segmented by channel, at a CAGR of 38.02% during 2024-2029.

The top opportunities in the generative artificial intelligence (AI) in digital marketing market segmented by component will arise in the software segment, which will gain $4.05 billion of global annual sales by 2029. The top opportunities in the generative artificial intelligence (AI) in digital marketing market segmented by channel will arise in the search engine marketing segment, which will gain $3.18 billion of global annual sales by 2029. The top opportunities in the generative artificial intelligence (AI) in digital marketing market segmented by application will arise in the content generation segment, which will gain $2.95 billion of global annual sales by 2029. The generative artificial intelligence (AI) in digital marketing market size will gain the most in the USA at $1.67 billion.

Market-trend-based strategies for the generative artificial intelligence (AI) in digital marketing market include focus on developing innovative solutions such as the AI-powered advertising suite, focus on developing innovative tools such as an generative AI Video Advertising Tools, focus on prioritizing the development of innovative solutions, such as AI-driven advertising creative tools and focus on developing strategic collaborations to enhance digital advertising efficiency and creativity. Player-adopted strategies in the generative artificial intelligence (AI) in digital marketing market include focus on expanding its manufacturing capabilities through strategic partnership.

To take advantage of the opportunities, the analyst recommends the generative artificial intelligence (AI) in digital marketing to focus on developing and deploying ai-powered advertising tools, focus on ai-driven video advertising tools to scale content production and improve roi, focus on accelerating content creation with ai-driven creative tools, focus on generative ai content suites to accelerate multichannel marketing efficiency, focus on capturing growth in the ai services segment, focus on scaling through mobile marketing integration, expand in emerging markets, focus on strategic collaborations to enhance creative efficiency and content scalability, focus on dynamic and value-based pricing to capture market potential, prioritize data-driven personalization across channels, strengthen thought leadership through strategic content deployment, focus on expanding ai-driven content generation capabilities.

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