• by Chuck Martin , May 22, 2019

The use of artificial intelligence in digital advertising will contribute to an increase in the cost per ad, according to a new study by Juniper Research.

The cost of media acquisition space on desktop and mobile is projected to increase along with the growth of digital advertising revenue in 2020.

By 2021, consumers are expected to continue to increase their awareness of the data being collected on them, and digital ad publishers will be challenged by legislative action.

“The effectiveness of AI and machine learning solutions will be limited if this is not mitigated,” states the study.

Media acquisition costs will rise as demand for ad space outpaces the supply of premium ad space by 2022, according to Juniper.

AI-created ads will become more accepted by 2023 and they will be integrated into consumer devices such as smart TVs and digital assistants.

“If implemented correctly, the benefits that AI can bring to the digital advertising industry cannot be overstated, enhancing advertising platforms’ ability to efficiently target the correct audience and detect fraudulent advertising activities,” the report states.