AI's Effect on Digital Advertising Unveiled by IAB Europe in Their Inaugural Report
IAB Europe Releases First Pan-European Impact Report on AI in Digital Advertising
IAB Europe, a leading industry association for the digital advertising sector, has unveiled its first comprehensive report on the impact of Artificial Intelligence (AI) on digital advertising across Europe. The report sheds light on the adoption, governance, and utilization of AI within the digital advertising ecosystem.
The report, which gathered nearly 100 responses from advertisers, agencies, ad tech companies, and publishers across multiple European markets, reveals that while AI is being widely adopted, there are still gaps in its implementation. These gaps include inconsistent governance, limited demand for guidance, and privacy as the number one concern.
Publishers, in particular, exhibit more caution, with fewer than a third citing CPM increases from AI-powered functions. However, the majority of companies, including ad tech firms and agencies, report clear Key Performance Indicator (KPI) benefits from using AI for targeting and content generation.
AI is proving to be a game-changer, streamlining processes, enhancing scale, and driving performance across the digital advertising industry. The report shows that 85% of companies already use AI-based tools for marketing, with targeting and content generation leading as the most common AI-powered functions.
The report also underscores the urgent need for clear frameworks, ongoing training, and responsible deployment of AI. IAB Europe's AI Working Group, which brings together experts from across the digital advertising ecosystem, is committed to addressing these issues. The Working Group's priorities, as shaped by the report, include developing a Guide to Prompting for Digital Advertising and collaborating with publishers to address content access.
Wayne Tassie, Group Director NL at DoubleVerify and chair of IAB Europe’s advertising & media committee, commented on the report, stating, "The report underscores the urgent need for clear frameworks, ongoing training, and responsible deployment of AI."
No respondents plan to reduce spend on AI-based tools, and the majority expect to maintain or increase investment. Despite the gaps in governance, the report suggests that the digital advertising industry is embracing AI and recognizes its potential to revolutionize the sector.
The full report can be downloaded from IAB Europe’s website, providing a comprehensive insight into the current state and future potential of AI in digital advertising across Europe.
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