The advertising industry's transformation is now quantifiable. AI-generated ad creative now accounts for 47% of digital display advertising, up from 8% in 2024. The shift has been devastating for traditional creative agencies.
Revenue at the top 10 global advertising holding companies declined 12% in 2025 — the first collective decline since the 2008 financial crisis. Layoffs have followed: an estimated 45,000 advertising jobs have been eliminated worldwide since 2024.
The platforms driving the change are Meta's Advantage+ and Google's Performance Max, both of which use AI to generate ad creative, test variations, and optimise placement automatically.
For brands, the economics are compelling. AI-generated campaigns typically cost 70-85% less than traditionally produced campaigns and often outperform them on conversion metrics.