"The company that has benefited the most from AI in the digital advertising space is AppLovin . Since introducing its Axon-2 AI-powered adtech platform in 2023, the company has seen both its revenue and profitability growth explode. It also is seeing no signs of this growth letting up, with revenue surging 68% last quarter to $1.41 billion and EBITDA (earnings before interest, taxes, depreciation, and amortization) soaring 79% to $1.16 billion."
"AppLovin has cracked the code in helping gaming apps attract new customers, which has been powering its growth. Between industry growth and continued improvements of its AI algorithm, it expects 20% to 30% revenue growth from the gaming sector over the long term. However, it also has other growth drivers. The company just launched a new self-serve platform, which could attract smaller gaming advertisers. It's also expanded its platform outside the U.S., which is where most gamers reside. In addition, it's looking to move beyond gaming and into web-based advertising in areas like e-commerce. It also sees strong potential in AI-driven ad generation for this vertical, to help advertisers create better and longer ads that are best suited for its platform."
"Another company seeing AI drive ad growth is Meta Platforms , the owner of Facebook and Instagram. It's using AI to improve its recommendation engine, which is both attracting more users and keeping it on its apps longer. In addition, it's providing advertisers with AI tools so they can use generative AI to create better ad campaigns and improve targeting. The result has been accelerating revenue growth for"
AI is driving strong growth across the digital advertising sector, boosting revenues and profitability for both specialized adtech firms and large social platforms. AppLovin’s Axon-2 AI adtech platform produced a sharp surge in revenue and EBITDA, with revenue up 68% to $1.41 billion and EBITDA up 79% to $1.16 billion. Growth is anchored in gaming user acquisition with an expected 20–30% long-term gaming revenue lift, a new self-serve product for smaller advertisers, international expansion, and a push into web-based e-commerce advertising using AI-generated ads. Meta Platforms is enhancing recommendation engines and offering generative AI tools to advertisers, increasing engagement and improving ad targeting, contributing to accelerating advertising revenue growth.
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