Digital advertising is a huge part of modern business, but as we look ahead, a big question for marketers and business leaders is: What’s next?
The answer, according to a lot of experts, is AI.
AI isn’t just a tech trend anymore; it’s becoming a foundational force that’s completely changing the digital marketing landscape with unprecedented precision, personalization, and efficiency.
This BoostMyDomain article has pulled together great insights from top business executives and digital growth professionals, who explain why they believe AI will not only keep ad spending growing but also make it smarter, more accountable, and easier for everyone to use, leading to a much better return on investment for businesses of all sizes.
Read on!
AI Lowers Entry Barriers for Small Business Advertisers
I’m positive it’s going to keep rising. What I’ve seen firsthand is that AI tools aren’t replacing spend; they’re making it easier for brands to justify more of it.
Clients are doubling down because AI gives them faster testing, sharper targeting and real-time performance tweaks that actually move the needle.
Even smaller businesses we work with are allocating more to digital because AI lowers entry barriers, things like predictive analytics or automated creative aren’t reserved for big players anymore.
Tom Molnar
Business Owner & Operations Manager, Fit Design
AI, Privacy Changes Fuel Rising Ad Spend
I expect digital ad spending to continue rising in 2025, though the pace might level out a bit compared to recent years.
The growing use of AI in marketing is driving greater efficiency and better targeting, which encourages more businesses to invest, not less. Brands are seeing stronger returns on ad spend thanks to smarter audience segmentation and creative testing powered by AI.
At the same time, platforms like Google and Meta are evolving rapidly to keep up with privacy changes, which forces marketers to stay active just to maintain visibility. I don’t see many companies pulling back unless the economy takes a serious downturn.
Jared Bauman
Co Founder & CEO, 201 Creative
AI Amplifies Ad Spend With Better ROI
As the CEO of a fast-growing home service company, I believe AI won’t reduce digital ad spending — it’ll optimize and amplify it.
Tools like ChatGPT, predictive targeting, and automated creative testing allow small businesses like mine to stretch budgets farther and hit more personalized segments.
However, that efficiency doesn’t mean reduced spend — it means better ROI, which encourages reinvestment.
At Salazar Scoops, we now spend more on Google Ads and SEO because AI helps us refine targeting and track results faster.
I expect 2025 to see increased spending, especially from local businesses realizing AI makes digital advertising more accessible, not less.
Anthony Salazar
CEO & Founder, Salazar Scoops
AI's Efficiency Drives Rising Ad Spend
I believe AI marketing will actually grow digital ad spending in 2025, not shrink it. Why? Because AI makes ad campaigns more efficient, not necessarily cheaper.
Brands are now able to optimize in real time, personalize creative at scale, and identify high-value audiences faster, which increases confidence in ROI. As a result, companies are more willing to pour larger budgets into platforms like Meta, Google, and TikTok, knowing the waste is lower.
Instead of replacing spending, AI is amplifying its effectiveness, encouraging even small businesses to enter the game with smarter targeting. While costs per click might stabilize or drop in certain segments, overall spending will likely continue climbing, fueled by AI’s promise of predictability and performance.
AI Drives Ad Spend, Increases Effectiveness
Rapid penetration of AI marketing solutions will ensure the ongoing expansion of digital ad spend until 2025.
Increasingly powerful AI tools enable marketers to fine-tune ad targeting and personalize content, as well as take the messiness and busywork out of their day-to-day work, resulting in more effective campaigns and less wasted time.
80% of marketing organizations will use AI chatbots for marketing automation by 2025. This technological revolution allows ad buyers to increase their return on investment (ROI) and reduce wastage, from which the auction economy is benefiting, and more and more advertisers are demanding digital ad budgets.
Although there may be a small temporary lull as businesses get on board with these latest tools, AI will generally continue to drive up digital ad spending and support the continuation of the pandemic-induced trend. And we’re all going to become more reliant on more personalized, data-based advertising — the type where businesses are going to need a heavier investment in AI-powered tools and strategies to keep up.
Founder, EV Hype
AI Lowers Content Costs, Fuels Ad Spending
I absolutely think it will grow ad spending in 2025, as the cost of creating content has gone down for many advertisers. Yes, we see a lot of AI slop, but there are also rather good AI generated creative out there.
Once a company learns their method for creating good or passable AI content, I see them spending the savings on riskier bets in digital advertising.
Christopher Falvey
Co-Founder, Unique Nola
AI Unlocks New Ad Ecosystems, Fueling Growth
Yes, I know that digital ad spending will continue to grow in 2025-but not just because brands will be spending more. The real growth is happening due to the ability of AI to unlock new ad ecosystems.
Retail media networks, creator-led platforms and immersive formats like connected TV are creating new digital shelf space, siphoning budgets from traditional spend. For example, retail media is projected to grow 21.9% year-over-year.
What’s changing is not just the amount being spent-which will vary depending on the economic landscape-but what is being spent on brands which are driven by AI and new ad formats. These formats allow for predictive targeting, real-time creative testing, and the ability to move dollars across campaigns-making every dollar account a lot harder.
So, while some economic headwinds may slow certain sectors, AI’s efficiency will allow ad investment overall to continue to grow. In short, it’s not inflation-it’s evolution.
Syed Irfan Ajmal
Marketing Manager, Trendline SEO
AI Drives Ad Spend With Better Targeting
Digital advertising spending is poised for continued growth driven by AI marketing solutions. AI’s capabilities to analyze vast datasets enable more precise targeting and personalization, making ad budgets more efficient.
At Man of Many, we’ve leveraged AI to enhance our audience engagement, seeing first-hand the benefits of targeted campaigns in boosting ROI. Consequently, we anticipate that as AI tools become more refined, advertisers will allocate more funds to digital channels to capitalize on improved cost efficiencies and results.
Moreover, the integration of AI in digital advertising aligns seamlessly with broader consumer trends towards a more personalized user experience, reinforcing this upward trajectory.
Scott Purcell
Co-Founder, Manofmany
AI’s Efficiency Drives More Competitive Spending
While AI marketing solutions can significantly reduce the time and cost involved in running campaigns, I don’t think that will translate into a drop in overall ad spend. If anything, AI’s ability to improve campaign performance, for example, through more accurate targeting, faster creative testing, and smarter optimisation, is likely to boost return on investment. But that doesn’t mean businesses will pocket the savings.
Instead, we’re more likely to see two outcomes: some advertisers will double down on high-performing campaigns to scale results, while others will find themselves spending more just to stay competitive.
As AI tools lower the barrier to entry, more businesses can enter the market, which drives up competition and, ultimately, ad costs. So even with smarter tools, staying visible may require deeper pockets.
James Parkinson
Head of Marketing Content, Personnel Checks
On behalf of the BoostMyDomain community of readers, we thank these leaders and experts for taking the time to share valuable insights that stem from years of experience and in-depth expertise in their respective niches.
BoostMyDomain invites you to share your insights and contribute to our authoritative publication. Reach a wider audience, build your credibility, and establish yourself as a thought leader in an industry that caters to every business with an online presence!
