In recent years, Generative AI has rapidly made its way into businesses across industry verticals, from healthcare and finance to entertainment and even education, transforming traditional business models and operational frameworks. One other industry that this technological revolution has caught on in is advertising, where the demand for personalised, dynamic content aligns perfectly with AI’s creative capabilities.
Cloud Guru
VergeCloud
In markets like India, this transformation carries immense economic potential, with generative AI poised to add USD 1.5 trillion to the country’s GDP by 2030. Within this broader revolution, the advertising sector stands out as one of the most promising applications of generative technology.
What is Generative AdTech?
Generative AdTech represents a transformative shift in advertising technology, where artificial intelligence creates dynamic, personalised content in real-time rather than relying on pre-made assets. This technology leverages machine learning algorithms to generate video ads, display creatives, and personalised messaging tailored to individual user preferences and behaviours.
Unlike traditional advertising approaches that depend on static content, generative AdTech enables advertisers to craft unique experiences for each consumer interaction, fundamentally changing how brands connect with their audiences at scale.
AdTech has already proven to be a game-changer in the advertising industry, offering targeting methods including demographic, geographic, behavioural, and contextual approaches. These strategies maximise return on investment by ensuring advertisements reach relevant audiences while minimising unwanted spending. The core principle remains targeted precision, allowing brands to deliver timely messages to ideal audiences through data-driven insights and machine learning refinements. Building on these established foundations, generative AI is now accelerating this evolution to unprecedented levels.
The market’s rapid evolution
The advertising landscape is experiencing unprecedented transformation driven by generative AI adoption. If 2024 was defined by advertisers’ experimentation with generative AI’s capabilities in programmatic, then 2025 will likely be defined by advertisers meaningfully investing in and implementing the technology. Current projections indicate that video ads built with generative AI will account for 40% of all video advertisements by 2026, with 86% of advertisers already using or planning to implement this technology.
The broader AdTech market continues expanding rapidly, growing from USD 839 billion in 2023 with a projected compound annual growth rate of 14% through 2032. This growth reflects not just increased spending but fundamental changes in how advertising operates. Looking ahead to 2025, the emphasis is likely to shift from purely creative applications of generative AI to more contextual and seamless ad integrations.
Infrastructure challenges in real-time creativity
Modern generative AdTech systems face significant operational hurdles that traditional infrastructure cannot adequately address. The technology demands ultra-low latency responses, elastic compute resources, and comprehensive regional coverage to handle dynamic content delivery and complex bidding algorithms simultaneously.
Unfortunately, the current systems grapple with several critical pain points. These include:
- Latency spikes that disrupt real-time bidding environments and compromise ad delivery effectiveness.
- Fluctuating compute demands that strain AI-driven creative generation processes during peak traffic periods.
- Coverage gaps in emerging markets that slow campaign reach and limit global performance potential.
- Privacy requirements in a cookieless future demanding compliance-ready, sovereign infrastructure solutions.
These challenges become more pronounced as generative AI requires GPU acceleration and edge computing capabilities to achieve sub-100ms response times essential for real-time bidding environments. Traditional data processing approaches simply cannot meet these demanding performance requirements.
The smart infrastructure revolution
The future of generative AdTech depends on intelligent, adaptive infrastructure that goes beyond simple scaling solutions. Modern architectures combine regional edge nodes with scalable compute layers and intelligent routing strategies to deliver both resilience and scalability. This approach ensures consistent sub-35ms responsiveness while dramatically reducing delivery costs.
Smart infrastructure represents a fundamental shift from viewing technology support as mere plumbing to recognising it as the innovation layer powering advertising’s future. Edge-forward architectures enable advertisers to run generative AI campaigns reliably across any geography, maintaining predictable performance regardless of location or traffic volume.
The integration of machine learning into infrastructure management allows systems to anticipate demand patterns, automatically allocate resources, and optimise performance in real-time. This intelligence layer transforms reactive systems into proactive platforms that enhance rather than constrain creative possibilities.
Competitive advantage through technology
Organisations that treat infrastructure as a strategic differentiator rather than a cost centre position themselves to capture disproportionate market share in the evolving landscape. That said, the convergence of generative AI with advanced infrastructure creates opportunities for unprecedented personalisation at a global scale. Brands can now deliver unique creative experiences to millions of users simultaneously while maintaining the responsiveness and reliability that modern advertising demands.
The road ahead
The advertising industry stands at an inflection point where creativity meets computational power. Success no longer depends solely on creative brilliance but on the ability to deliver that creativity at the speed of compute. Infrastructure innovation has become the ultimate driver of ROI in the generative AI-powered AdTech ecosystem.
Organisations that recognise this shift and invest in smart, adaptive infrastructure will define the next era of advertising innovation. The winners will be those who understand that in generative AdTech, infrastructure is more than just support; it’s the strategic foundation enabling the future of advertising itself.
–Hamid Rostami as Cloud Guru, VergeCloud