Digital Advertising in the Age of Artificial Intelligence (AI)
Artificial Intelligence, or AI for short, has been the topic on the lips of many since 2023 (and even more so for those of us who love technology), and in 2025 it has penetrated even faster, dominating headlines, conversations, and transforming strategies and processes in almost every industry.
But beyond the recent commotion, AI has been present in our lives for decades: from playing chess against a computer, the NPCs in video games like GTA, even in everyday functions such as Word or iPhone autocorrect. Yes, those systems that try to correct when you want to write "cabr**" and correct it to "carbón", were already initial expressions of artificial intelligence in our lives. More recently, assistants like Siri, Alexa or Google Home arrived, integrating AI into our daily lives, almost without us realizing it.
What has changed dizzyingly in recent years is its level of power, sophistication and connection with humans, becoming part of our jobs and personal lives. Today AI doesn't just predict or respond: it generates realistic content in photo and video, audio and voice, learns complex patterns, and is transforming entire industries such as marketing and advertising. It is now easier to automate processes, analyze data in real time, optimize campaigns, create content and even anticipate consumer behavior.
The outlook, for now, is clear: in the midst of so much innovation and the prominence of artificial intelligence, there is one reality that remains firm: digital advertising continues to be the main highway along which the consumer economy moves. Especially on platforms such as Google and Meta, where AI now acts as an additional engine that boosts segmentation, efficiency, reach and results of digital campaigns.
From our experience at Alterno Agency, with more than 15 years working in advertising and digital media, and handling millions of dollars in advertising budgets, we can confirm the following: although tools evolve and technologies change, human behavior maintains consistent patterns. People need to see, hear, interact, confirm and trust before making a decision, such as a purchase. And that exposure continues to happen in the same ecosystems where it has been happening for the last decade: Google and Meta.
Digital Advertising: A Constant that Evolves, Not Disappears
The rise of Artificial Intelligence has revolutionized the way we work in marketing and advertising, from task automation to content generation and predictive analytics. However, AI does not replace outreach channels or generate traffic or relevance on its own. It is not enough to have powerful algorithms if there is no strategy, message and real audience to reach. AI does not replace the channel; it strengthens it. It optimizes what is already in place, helping to better segment, make smarter decisions and maximize the performance of existing digital campaigns.
Why Are Google and Meta Still So Relevant?
In 2024, Google generated $348.16 billion, of which $264.59 billion came from advertising revenue (Statista, 2025). Although this figure is annualized, the most recent Q3 2024 breakdown shows that Google Search & other properties accounted for 57.2%, YouTube Ads 10.3% and Google Network Ads 9.9%. The remainder came from Google Cloud, subscriptions, platforms, devices and other revenue (Doofinder, 2025).
Google-Alphabet revenue distribution Q3 - 2024
Despite the growth of other divisions such as Google Cloud, Google's business structure remains focused on converting user attention into profitable advertising inventory. Its search, video and display ecosystem remains essential to any strategy focused on viewability, traffic and conversion.
In addition, Google is aggressively investing in artificial intelligence to power its search engine and advertising systems. Although AI Search is growing, it does not eliminate Google's central role; on the contrary, it continues to drive users to websites, e-commerce and landing pages. AI optimizes, not replaces visibility.
Meta
In the case of Meta, the figure is even more telling: around 97% of its revenues depend directly on its advertising platform, according to Statista. Although they have diversified with Metaverse, Reality Labs, hardware such as Meta Quest, and subscription services such as Meta Verified, their core business remains the sale of advertising space on Facebook, Instagram, Messenger and their Audience Network.
Meta has also invested heavily in artificial intelligence. Its infrastructure powers audiences, segmentation, distribution algorithms and recommendation systems. From experiences in Reels and Stories to advanced models such as LLaMA (Large Language Model Meta AI), Meta has also invested heavily in artificial intelligence. LLaMA (Large Language Model Meta AI)its entire ecosystem is designed to maximize results for advertisers.
Meta's funnel covers everything from awareness (Feed, Explore), engagement (Stories, Reels, In-stream video) to conversions (Lead Forms, Click-to-WhatsApp, Conversions API). All this scaffolding, backed by AI, strengthens their advertising machine year after year. To understand more about how its system works, you can visit Meta for Business.
AI as a Tool, Not a Replacement for the Digital Ecosystem
AI has redefined how we do digital advertising, but not where we do it. It helps create precise audiences, optimizes budgets, automates tasks and generates content at incredible speed. However, much of the audiences are still on Google, Meta and their properties.
Even AI-driven searches such as Google's AI Search work on top of traditional infrastructure. According to TechCrunch, 2025 y Search Engine Land, 2025their purpose is not to replace Google Search, but to complement it and drive traffic to websites, online stores and digital media where final decisions are made.
SparkToro, 2025 confirms that, despite the rise of AI, Google Search grew 20% in 2024 and currently generates 373 times more traffic than ChatGPT or AI Search.
How AI Is Powering Digital Advertising and Marketing
Today, AI is a strategic ally that optimizes modern marketing and advertising strategies. Thanks to its ability to analyze data in real time, anticipate trends and automate tasks, it has transformed how brands achieve their goals.
Concrete Benefits of AI in Digital Marketing:
Personalization and Customer Insights
Task Automation
Audience management
Real Time Optimization
SEO improvement
Content Creation
Better User Experience
These capabilities do not eliminate paid digital advertising; they strengthen it by making it more accurate, effective and efficient.
Paid Advertising as Part of an Integrated Strategy
A common misconception is that digital advertising does it all. And now, with the advances in AI and the levels of automation and content generation available, many people believe that nothing else is needed to have an effective campaign. As powerful as AI is and as much content as it can generate, digital advertising is still only one component of a complete, integrated marketing strategy.
Paid campaigns are important, but they are not the only solution. Digital advertising is one more link in a strategic plan that should include:
Clear positioning and value proposition
Strong and defined branding
Analysis and marketing plan
Clear objectives
Realistic budget
Definition of target public and audiences
Clear sales proposal and offers
Advertising Campaign Development
Website optimized for SEO and Conversion
Retargeting campaigns
Constant presence in social networks
Relevant and consistent content
Public Relations
Automation
Measurement plan with defined KPIs
Among other key elements...
AI does not replace a digital marketing and advertising strategy, but complements it. AI optimizes processes, ads, audiences and entire campaigns. Investing in digital media where people are active is still a very important element, but it must be part of a comprehensive strategy that looks at multiple channels, tactics and touch points to achieve sustainable results.
Conclusion: Strategy + Technology + Investment
From our experience at Alterno Agency, with more than 15 years in the digital advertising industry in Puerto Rico and managing hundreds of campaigns a year, we know that trends change, but the fundamentals remain. People consume information, trust the brands they see repeatedly and make decisions based on visibility, relevance and trust.
Be careful: even if you do everything right, people still prefer the recommendation of a friend or colleague. But when they don't have one, they turn to the internet: they ask on social networks, search on Google, ask on ChatGPT, read reviews on Amazon. And as long as they don't decide, we have the advantage of continuing to impact them with digital ads and retargeting strategies 😉.
AI is an ally of digital advertising, as it automates, optimizes, creates, accelerates and predicts. But it does not replace the fundamental structure of marketing and advertising: being where people are and staying visible with consistency. Google and Meta are still those spaces. Digital advertising is not going away; it is evolving.
✅ If you're looking for real, thoughtful, experience-based results, we at Alterno are ready to help you integrate artificial intelligence into your digital advertising strategy.
From campaign automation to content generation and advanced analytics, we can help you transform your brand with technology, creativity and strategic focus.
For over 15 years we have been helping brands and businesses find their audiences where they really are: in social networks and digital media.
Transform your brand with Alterno.
Reference sources and recommended reading:
Statista (2025). Google Annual Revenue.
Available at: https://www.statista.com/statistics/266206/googles-annual-global-revenue/
Doofinder (2025). Google Revenue Breakdown.
Available at: https://www.doofinder.com/en/statistics/google-revenue-breakdown
Oberlo (2025). How Does Google Make Money.
Available at: https://www.oberlo.com/statistics/how-does-google-make-money
TechCrunch (2025). Google's AI Search Growth.
Available at: https://techcrunch.com/2025/04/25/googles-ai-search-numbers-are-growing-and-thats-by-design/
Search Engine Land (2025). AI Search and Google.
Available at: https://searchengineland.com/ai-search-gaining-traction-not-replacing-google-survey-451667
SparkToro (2025). Search Behavior Research.
Available at: https://sparktoro.com/blog/new-research-google-search-grew-20-in-2024-receives-373x-more-searches-than-chatgpt/
Forbes (2018). How AI is Revolutionizing Digital Marketing.
Available at: https://www.forbes.com/sites/nicolemartin1/2018/11/12/how-ai-is-revolutionizing-digital-marketing/
LinkedIn (2025). How AI is Revolutionizing Digital Marketing.
Available at: https://www.linkedin.com/pulse/how-ai-revolutionizing-digital-marketing-2025-majid-basharat-imt5f/