Brands Bet Big On AI To Support Performance Advertising, Marketing

Why It Matters

AI adoption is reshaping performance marketing, delivering measurable ROI and prompting larger spend on traditionally offline channels like direct‑mail, signaling a shift toward omnichannel, data‑centric strategies.

Key Takeaways

• 70%+ marketers increased performance ad spend in past three years
• AI improves targeting accuracy for 42.5% of direct‑mail users
• 36% cite high implementation costs as AI integration obstacle
• Retail media network adoption rose to 37% from 27% last year
• Over 60% say AI delivers moderate or better value in direct‑mail

Pulse Analysis

The surge in AI‑powered performance advertising reflects a maturing data economy that is reshaping how brands allocate media dollars. According to the Winterberry Group’s latest survey, more than seven‑in‑ten U.S. marketers have lifted their spend on digital channels such as display (57%) and paid social (54%) in the last three years, extending AI experiments beyond early‑stage workflow automation to cross‑channel attribution and audience synthesis. Financial services, B2B tech, CPG and retail firms are converging on similar AI stacks, accelerating the shift from intuition‑based buying to algorithm‑driven optimization.

Perhaps the most surprising outcome is the revival of direct‑mail, now bolstered by generative and predictive AI. The study finds 96% of respondents have applied AI to mail programs, with 42.5% citing sharper targeting and 41.6% reporting higher ROI. This digital‑to‑physical synergy is driving a modest 1.1% rise in U.S. direct‑mail spend to $36.6 billion in 2026, and 83% of marketers intend to increase those budgets. AI‑enhanced design, address verification and spend orchestration are turning mail into a measurable performance channel.

Despite the upside, integration hurdles and cost pressures remain the top concerns, flagged by 38% and 36% of participants respectively. Legacy martech stacks often lack the APIs needed for seamless AI infusion, forcing firms to invest in custom connectors or third‑party platforms. Companies that prioritize modular architecture and clear ROI metrics are better positioned to scale AI across the full media mix. As the technology matures, we can expect AI to move from supporting isolated tactics to orchestrating end‑to‑end budget allocation, a development that could redefine the economics of performance marketing.