Generative artificial intelligence is rapidly transforming the digital marketing landscape, with a new market report revealing unprecedented growth potential over the next decade.
According to the "Generative Artificial Intelligence in Digital Marketing Market Opportunities and Strategies to 2034" report released on June 18, 2025, the market is expected to expand from $2.48 billion in 2024 to $9.46 billion by 2029, growing at a compound annual growth rate (CAGR) of 30.69%. This growth trajectory is projected to continue, reaching $35.12 billion by 2034 at a CAGR of 29.98%.
The market's expansion is being fueled by several key factors, including increasing demand for personalization in marketing campaigns, the need for cost-effective marketing solutions, the growing prominence of video content, and the expanding volume of consumer data available for analysis. These drivers are enabling marketers to deliver more relevant, engaging, and meaningful customer experiences at scale.
Content generation currently represents the largest application segment, accounting for 32.93% ($817.81 million) of the market in 2024, and is expected to be the fastest-growing segment with a CAGR of 35.79% through 2029. Meanwhile, search engine marketing dominates the channel segment with 47.88% ($1.18 billion) of the market share.
The competitive landscape remains highly fragmented, with the top ten players controlling just 15.2% of the market. International Business Machines Corporation (IBM) leads with a 3.48% market share, followed by Google LLC (2.03%), Microsoft Corporation (1.53%), Meta Platforms Inc. (1.39%), and Amazon.com Inc. (1.32%).
Regionally, North America currently dominates with 33.66% of the global market, followed by Asia-Pacific, which is expected to be the fastest-growing region with a CAGR of 36.09% through 2029.
Despite the promising outlook, the industry faces challenges including data privacy concerns, the risk of misinformation and deepfake content, and technical complexity. Companies are focusing on developing innovative solutions such as AI-powered advertising suites and generative AI video advertising tools to address these challenges and capitalize on the growing market opportunity.