China Advertising Market Panoramic Report: Generative AI brings five major changes and four major impacts, enabling personalized advertising customization

As the Internet traffic dividend fades, the advertising and marketing industry is facing the challenge of existing competition. In order to stand out in a highly competitive market, advertisers need to constantly innovate and optimize their marketing strategies. Only through precise positioning, creative breakthroughs and data-driven decisions can we effectively attract targets

TikTok’s latest news shows that they are using generative AI to provide advertising scripts to enhance the creativity and personalization of advertising. In addition, Snapchat has also begun using chatbots to push personalized ads to better meet user needs. In addition, Baidu has also restructured its marketing and launched a new AI Native product to provide full-process value-added services for corporate marketing. These initiatives all reflect the application and development of artificial intelligence in the advertising field.

The rise of large-scale and generative AI technologies has brought disruptive opportunities to brand marketing. The combination of the advertising and marketing industry with the two is showing an unprecedented hot trend, not only at home but also abroad.

Participants in the advertising and marketing industry chain are facing an important historic turning point.

What new solutions does generative AI provide for different advertising and marketing entities?

How have the workflow, content production scenarios, and delivery effects of the advertising and marketing industry changed? What kind of cyclical impact will the industry have?

What changes have occurred in the core production factors of the advertising and marketing industry under the wave of generative AI? How should traditional marketing companies respond? What opportunities are there for startups?

With these questions, Qubit Think Tank"China AIGC Advertising Marketing Industry Panoramic Report" is derived from this and tries to answer it.

In the report, Qubit Think Tank will analyze the current situation of my country's advertising and marketing industry, the five major changes, four major impacts, and market size brought about by generative AI. and competitive status , etc., to comprehensively and three-dimensionally depict the panoramic view of China's AIGC advertising and marketing industry from multiple angles and directions.

The core views include:

• Advertising marketing may become the fastest field of implementation of generative AI, and it will begin to return "People Communicate with people" to achieve"global optimal"distribution method
• Generative AIFrom the supply end to the demand end Impacts players in the industry chain in turn, and the value of marketing service providers is highlighted
• From PGC to UGC to AIGC, generative AI creates content production incremental market, Creative toolsPopularizationThe trend is significant
• From indiscriminate influence to personalized customization , generative AI makes it possible to create ads just for "one person"
• # #As a new growth engine, the business revenue of generative AI in the advertising and marketing industry is expected to reach hundreds of billions in 2030Market size Industry and Talent Resources
• 、Model Effect、 Service scenarioanddata feedbackbecome the new core production factors of the advertising and marketing industry In the future, each brand will have its own exclusive marketing model,
• Large model customization and fine-tuning technology Indispensable......
  Advertising marketing in the era of large models
Advertising marketing It is an activity for enterprises to promote products through advertising, promote direct purchase by consumers, increase sales, and improve the visibility, reputation and influence of enterprises. It is an integral part of a business's marketing mix. Through advertising, companies can convey the features, advantages and value of products to potential consumers, attract their attention and stimulate their desire to purchase. Advertisements can be disseminated through a variety of media channels, such as television, radio, newspapers, magazines, the Internet, etc., to cover a wider range of audiences. The paradigm of traditional advertising and marketing uses traffic to drive brand growth, mainly through SEM search placement. Pattern and algorithm recommendations.

The current Internet traffic dividend has peaked, and customers have higher expectations for getting responses that “answer what they ask.” Attention to user needs expression has also been improved.

The advertising and marketing industry needs a new paradigm to drive growth.

Generative AI has become the key to breaking the game

Advertising and marketing previously focused on delivery, media and operations. Now the media is mainly based on media advertising (nearly 70%), the life cycle has become shorter, and content is less important. As production requirements become higher, content quality will directly determine the value creation of advertising and marketing.

Generative AI technology can be used to solve pain points in all aspects of marketing, and it may become the fastest field to combine generative AI with actual implementation effects.

Under the impact of generative AI, the advertising and marketing industry will return to the essence of marketing, from one-way interaction between "human and machine" to communication between "human and human"; The process is flattened, content production and delivery are carried out in one step, and information loss is reduced; the traditional advertising recommendation model is transformed into a large data-driven model as the core to achieve global optimal advertising distribution.

Application of Generative AI in the Advertising and Marketing Field

The combination of large models and generative AI technology in the domestic and foreign advertising and marketing industry has become unprecedentedly popular.

Advertisers/brands, advertising and marketing service providers, delivery platforms, and third-party companies have all entered the game.

AIGC Five Major Changes in Advertising and Marketing

The changes brought by large models and generative AI technology to the advertising and marketing industry, we will analyze the industry chain, workflow, typical production scenarios, delivery effects, business formats and These five aspects of the pattern are summarized as follows:

Change 1: Industrial chain transformation

The advertising and marketing industry industry chain can be divided into advertisers, advertising media and consumers according to the participating entities. Among them, advertisers are The driving force for the development of the Internet advertising industry, advertising media is the core driver of the market, and consumers are the audience for advertising marketing.

Among them, players in the upper reaches of the industry chain will be the first to be affected, because there is a need to reduce costs and increase efficiency in content production, and they need to use the capabilities of generative AI to transform.

Some brands are slowly disintermediating, internalizing their own capabilities, and need new tools to apply to new scenarios.

Marketing service providers have slowly transformed from pure tools and intermediary link work to providing advertisers with stronger value-added in the intermediate links.

The midstream delivery platform will be impacted immediately. If the upstream adopts generative AI capabilities, the platform's own capabilities can be externalized into the ability to cooperate with the upstream to break the self-closed loop.

In the future, when new interaction methods, scenarios or channels such as virtual digital humans supported by large models mature, consumers will be greatly affected.

Change 2: Workflow Change

The workflow and links in the advertising and marketing field involve strategy formulation and user portrait insights, advertising content production, distribution channel management and effect analysis, etc., which require It consumes a lot of time, and many of the tasks can be improved by replacing manual work with AI.

Among them,

Strategic Insights and Content Production will be covered first, which are scenarios where generative AI can provide a higher degree of assistance within 0-2 years.

However, since the current improvement effect of adding large models to the traffic matching algorithm is not obvious, generative AI cannot provide high assistance in the short term in the delivery management process.

Change Three: Production Scenario Change

Content production is the most prominent scenario for generative AI in the entire advertising and marketing process. Qubit Think Tank predicts that 70% of marketing content will be automatically generated and iterated by AI in the next five years.

This is because generative AI lowers the threshold for content creation and makes it possible to generate content in batches. In the future, creative production tools will become more and more popular, and content production will no longer be a stock market, but an incremental market.

In the content production part of the advertising and marketing industry, marketing material production mainly includes three forms: copywriting generation, image generation, and video generation. Among them, copywriting generation is subject to the innovation

and

real-timeness

of the marketing industry. Although the technology is relatively mature, it is currently rarely put into use in China and the degree of commercialization is low. .

The domestic technology for image generation is relatively mature at present, because the generated images are still not refined enoughThe degree of commercialization is average.

The current domestic technology and commercialization of video generation are not mature enough.

The complexity is high. Companies mostly use AI for special effects or picture splicing and to generate virtual digital human videos. It is expected that it may The effect of image generation will be achieved by the middle of the year and commercialization will be achieved.

Change 4: Change in delivery effect

Advertising marketing has experienced an indiscriminate impact on "everyone" before 2006, to an impact on "one type of people" between 2006 and 2012, and then after 2012. The precise impact on "one person".

In 2012, the advertising algorithm of the mobile Internet made accurate recommendations possible. In 2022, large-scale model technology appeared, and generative AI made it possible to create advertising content only for "one person".

##Change Five: Business and Pattern Change

Generative AI can effectively improve the productivity of the advertising and marketing industry, mainly reflected in——

• Innovate advertising forms, bring a new interactive experience, form strong traffic, high interaction, and improve advertising ROI.
• # Improve the efficiency of marketing content production, promote automated personalized marketing, and achieve precise links and efficient reach.
• # Promote the innovation of business models of marketing service providers and optimize enterprise workflow.

The Four Major Influences of AIGC Advertising and Marketing

Qubit Think Tank focuses on four aspects: market size, industry core production factors, enterprise workflow, and industry development stages and cycles. On the other hand, let’s look at the impact of large models and generative AI on the advertising and marketing industry in the future:

Impact 1: Technical variables rewrite the market size

According to the estimates of Qubit Think Tank, my country’s advertising and marketing market The overall growth trend will still be good, and the market size is expected to reach

1,346.59 billion in 2025, with the industry's annual compound growth rate reaching 9% in the next three years.

China’s current generative AI business revenue accounts for less than 1% of the advertising and marketing industry, and the annual growth rate may reach

60% in the future Above, it is expected to reach around 150 billion in 2030.

Impact 2: Changes in the core production factors of the industry

Based on the analysis and prediction of industry development, Quantum Think Tank believes that in the wave of generative AI technology The core production factors of the advertising and marketing industry will change, and corporate capabilities will depend on the following four key factors -

Industry understanding and talent threshold,The effect of the underlying technology large model , Service scenario selection and Build a data closed loop.

Impact 3: Advertising and marketing workflow is reshaped

The current role of generative AI in the workflow of advertising and marketing enterprises is still

Empowerment, throughTransforming content Production processto comprehensively improve the efficiency of the marketing link

In the future, generative AI will reshape the workflow of advertising and marketing enterprises from every link. AI can be used to realize data return in the entire process, and consumer feedback can be invested Continuously iterate in data analysis and content reproduction to achieve intelligent and automated

marketing links, precise and personalized marketing content, and truly achieve a transformation from quantitative to qualitative change.

Impact 4: The development stages and cycles of the advertising and marketing industry under generative AI

Qubit Think Tank predicts the future development of AIGC advertising and marketing, which can be divided into There are three stages -

Explosion period, Application explosion period and Popularization period.

And the impact of each stage on the technology, supply and demand sides is predicted.

Competitive landscape of the advertising and marketing industry

According to Qubit Think Tank, the industry panorama of the advertising and marketing industry is as follows:

Current status of products and services

Players in the advertising and marketing industry can be roughly divided into three categories based on the nature of their companies: major Internet companies, giant marketing service providers, and start-up companies. According to the research and analysis of the Qubit Think Tank, the current situation of the large-scale model technology and the combination of their products and services for these three types of companies involved in the advertising and marketing track is as follows:

Major Internet companies have already or are about to develop their own Universal large models or marketing vertical large models, and provide MaaS services. Vendors that have developed self-developed large models have applied their large models and generative AI capabilities to all products and services in the advertising and marketing field.

Most of the giant marketing service providers are actively trying to integrate large models and generative AI technology into their own products and services, but the focus is different.

Most start-up companies do not develop large models by themselves. They all fine-tune or embed other large models as a base and combine industry know-how to create new products or services.

Competitive Landscape Analysis

The competitive advantages formed by the advertising and marketing industry’s traditional reliance on planning and promotion, channel resources, etc. will be reshaped, and advertisers will pay more and more attention to content quality and delivery efficiency.

Based on the above reasons, Qubit Think Tank will analyze the current distribution and status of players in the industry from two aspects: large model technical capabilities, marketing data and talent accumulation.

The first quadrant: star companies with technology and resource accumulation

There are two situations in this quadrant:

The first category is the Internet giants , as a launch platform with a dedicated AI R&D team, it can quickly enter large models and integrate them into its own products and services;

The second category is giant marketing service providers, all of which are actively trying to develop large-scale models of their own. , integrating generative AI technology into its own products and services.

Second Quadrant: Innovative force with strong technical capabilities

There are two situations in this quadrant:

The first category is those with strong AI and big data Giant companies with model capabilities use new marketing scenarios as an entry point to enter the market, such as SenseTime;

The second category is emerging startup companies with AI as their core capabilities from the beginning. This type of company is highly regarded by the capital market. favor. Take Guiyi Intelligence as an example. The company received tens of millions of yuan in financing less than two months after its establishment.

The fourth quadrant: traditional enterprises deeply involved in the marketing industry

This quadrant mainly has many years of experience in the marketing industry, a large number of marketing content data accumulation and marketing talents, mostly for Traditional advertising and marketing companies that provide offline advertising or brand planning and public relations lack AI genes and teams, so they need to actively embrace changes if they want not to fall behind.

Due to the different needs of brands, the emphasis on data security, and the lack of original capabilities of head marketing companies to immediately create new scenarios, startups have new entry opportunities.

The above is the detailed content of China Advertising Market Panoramic Report: Generative AI brings five major changes and four major impacts, enabling personalized advertising customization. For more information, please follow other related articles on the PHP Chinese website!