Artificial Intelligence (AI)-Powered Interactive Advertisement (Ad) Personalization Market Report 2025

The artificial intelligence (AI)-powered interactive advertisement (Ad) personalization market size has grown exponentially in recent years. It will grow from $7.29 billion in 2024 to $8.97 billion in 2025 at a compound annual growth rate (CAGR) of 23%. The growth during the historic period can be linked to accelerating digital transformation, expanding internet access, rising investments in AI research and development, broader adoption of software-as-a-service (SaaS), and growing demand for personalized customer experiences.

The artificial intelligence (AI)-powered interactive advertisement (Ad) personalization market size is expected to see exponential growth in the next few years. It will grow to $20.32 billion in 2029 at a compound annual growth rate (CAGR) of 22.7%. The expected growth in the forecast period is driven by the rising use of artificial intelligence, greater adoption of hybrid cloud architectures, increasing demand for data-driven marketing, the expansion of a data-centric world, and growing volumes of customer data creation. Key trends anticipated during this time include wider adoption of voice and visual search in advertisements, the growth of augmented reality (AR) in personalized advertising, increased utilization of predictive analytics for targeting customers, the emergence of privacy-first AI personalization techniques, and the integration of edge computing for real-time ad customization.

The ongoing digital transformation is expected to drive growth in the artificial intelligence (AI)-powered interactive advertisement (Ad) personalization market. Digital transformation refers to the adoption of digital technologies across businesses to reshape operations and improve customer value. As companies increasingly embrace these technologies to boost efficiency, reduce costs, and provide faster, more reliable services, AI-powered interactive ad personalization plays a key role by delivering targeted, data-driven marketing experiences. This approach streamlines advertising processes, enhances customer engagement, and uses real-time insights to optimize strategies, strengthening connections between brands and their audiences. For example, in November 2023, GOV.UK reported a 9% increase in the Government Digital and Data profession over six months, reaching 28,337 professionals, highlighting the broader trend toward digital transformation. This momentum is fueling growth in the AI-powered interactive advertisement personalization market.

Leading companies in the artificial intelligence (AI)-powered interactive advertisement personalization market are advancing generative AI-enabled enterprise applications to enhance customer experiences and boost conversion rates. These applications use AI to automatically generate content, insights, or solutions based on data patterns and user inputs, improving decision-making, automating tasks, and delivering personalized experiences across business operations. For example, in October 2024, Adobe Inc., a US-based software company, launched Adobe GenStudio for Performance Marketing, a generative AI-first enterprise application designed to speed up global advertising and marketing campaigns. This platform connects marketing and creative teams, allowing them to quickly create and manage personalized, on-brand content such as paid social ads, display ads, and marketing emails by leveraging Adobe Firefly alongside third-party AI models.

In June 2025, Braze Inc., a US-based cloud software company, acquired OfferFit for \$0.325 billion. This acquisition is intended to incorporate OfferFit’s advanced multi-agent reinforcement learning engine into Braze’s Customer Engagement Platform, boosting AI-driven personalization and automation capabilities. The move supports Braze’s vision of agentic AI to revolutionize customer engagement by delivering highly relevant and optimized customer journeys at scale. OfferFit Inc., also based in the US, specializes in AI-powered interactive advertisement personalization.

Major players in the artificial intelligence (AI)-powered interactive advertisement (AD) personalization market are Meta Platforms Inc., Salesforce Inc., Adobe Inc., Criteo SA, The Trade Desk, Outbrain Inc., LiveRamp Holdings Inc., StackAdapt Inc., Amobee Inc., MediaMath Holdings Inc., Smartly.io, Bloomreach Inc., Quantcast Corporation, AdCreative.ai, NextRoll Inc., Persado Inc., LiveIntent Inc., Innovid Corp., Choozle Inc., and Omneky Inc.

North America was the largest region in the artificial intelligence (AI)-powered interactive advertisement (Ad) personalization market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in artificial intelligence (AI)-powered interactive advertisement (Ad) personalization report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the artificial intelligence (AI)-powered interactive advertisement (Ad) personalization market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the media sector, particularly in content production, broadcasting, and digital distribution. Higher duties on imported audiovisual equipment, editing software, and broadcast technology have increased production and operational costs for media companies. Film and television studios face added expenses for sourcing foreign-made cameras, lighting systems, and post-production tools, while news and broadcasting agencies are contending with inflated costs for transmission equipment and satellite services. Moreover, retaliatory tariffs in international markets are restricting the export of U.S.-produced media content, limiting global revenue potential. In response, media organizations are turning to domestic suppliers, expanding digital platforms, and investing in AI-driven content creation to streamline operations and preserve competitiveness in a volatile global trade environment.

Artificial intelligence (AI)-powered interactive advertisement (Ad) personalization involves using AI algorithms and machine learning to create dynamic, tailored ads that engage users based on their preferences, behaviors, and online activities. This approach enhances user interaction, improves ad relevance, and boosts conversion rates by delivering the right message to the right audience at the most effective time.

The primary categories of AI-powered interactive ad personalization include software and services. Software comprises AI-driven platforms and tools that facilitate personalized ad targeting, optimization, and delivery. These solutions are available through various deployment models, such as cloud-based and on-premises, and cater to different enterprise sizes, ranging from small and medium businesses to large corporations. The technology is applied across numerous sectors, including retail and e-commerce, media and entertainment, banking, financial services and insurance (BFSI), healthcare, automotive, travel and hospitality, among others, and serves a broad range of end-users such as advertisers, publishers, and agencies.

The artificial intelligence (AI)-powered interactive advertisement (Ad) personalization market research report is one of a series of new reports that provides artificial intelligence (AI)-powered interactive advertisement (Ad) personalization market statistics, including the artificial intelligence (AI)-powered interactive advertisement (Ad) personalization industry global market size, regional shares, competitors with the artificial intelligence (AI)-powered interactive advertisement (Ad) personalization market share, detailed artificial intelligence (AI)-powered interactive advertisement (Ad) personalization market segments, market trends, opportunities, and any further data you may need to thrive in the artificial intelligence (AI)-powered interactive advertisement (Ad) personalization industry. This artificial intelligence (AI)-powered interactive advertisement (Ad) personalization market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The artificial intelligence (AI)-powered interactive advertisement (Ad) personalization market consists of revenues earned by entities by providing services such as customer data platform (CDP) services, behavioral analytics services, predictive modeling services, content recommendation, and programmatic advertising. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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