Content image

More than a tenth of all content-driven advertising spend will be allocated to machine-generated content (MGC) by the end of the decade, a new report by GroupM predicts.

In the WPP-owned group’s latest This Year Next Year ad investment forecast, it forecasts that around 2% of all spend with TV, film, audio, publishing and social media in 2024 will be with MGC, rising to 10.7% in 2029.

GroupM defines MGC as “all AI-generated content by both professional and ‘non-professional’ creators”. Search ad revenue is not included in the calculation.

The report’s author, Kate Scott-Dawkins, GroupM’s Global President, Business Intelligence, says there has been a “shift” in content generation and monetisation from professional creators associated with organized studios and publishers to individual creators and the general public.

WARC Media data supports this view. A growing share of total spend is going to digital platforms – most notably Alphabet, Meta and Amazon. Content media owners (including all forms of TV, publishing, audio and cinema) are forecast to receive only 27.2% of all global ad investment in 2024, down from 71.0% a decade earlier.

The size of global ad investment with media owners in which ads run alongside professionally produced content reached $363.2bn in 2013 but shrank to $254.1bn during 2020. A post-pandemic recovery will see spend climb back to $284.1bn in 2024, buoyed by election cycles and quadrennial sporting events.

Content image