US Digital Ad Spend from Generative AI Brands Climbed 121% in Q2 2025

The appetite for AI solutions is clear: global downloads for Generative AI apps more than doubled year-over-year (YoY) H1 2025, and in-app purchase (IAP) revenue more than tripled over the same period. With this surge in demand, leading Generative AI apps are refining their User Acquisition (UA) strategies by precisely aligning newly developed features and expanded use cases with the specific needs and preferences of their target audiences. Sensor Tower’s State of AI Apps Report 2025 digs into the latest trends in digital advertising, from the strategies employed by top brands to how brands across categories are promoting their new AI offerings.

Generative AI Digital Advertising Builds Momentum into 2025

While top AI Assistants initially relied primarily on organic channels as interest in the technology boomed, digital ad spend from these companies has significantly increased in recent quarters. In the US, digital ad spending for Generative AI apps surpassed $200 million in Q2 2025, more than doubling the investment from Q2 2024.

However, digital ad investment varied significantly by market. Generative AI brands actually decreased their spending in France, Germany, and Spain compared to the second half of 2024, while spending in Brazil, India, and the UK sharply increased in Q2 2025. It's important to note that the included ad channels vary by market.

Ad strategies varied significantly for top Generative AI brands. However, distinct approaches are still evident. Microsoft Copilot and Adobe currently employ the most diversified digital advertising strategies, distributing ad spend across many ad channels. In contrast, other players like Meta AI, PolyBuzz, and Answer.AI primarily concentrate their ad spend on YouTube.

ChatGPT (OpenAI) and Google appear to be targeting more specific audiences with their ad campaigns, selecting channels to align with campaign objectives. For instance, ChatGPT focused its advertising on Instagram and Facebook for a campaign promoting free ChatGPT Plus to college students. Meanwhile, Google strategically utilized LinkedIn to highlight creative use cases for Gemini, reaching a professional demographic.

Top AI Brands Promote New Features and Use Cases to Broaden Their Reach

As AI Assistants increasingly vie for a broader, more casual audience, their marketing strategies are shifting to emphasize features and use cases that are both enjoyable and easy to learn. These apps are not only actively promoting their image generation capabilities through their App Store Optimization (ASO) strategies (as discussed on page 48 in the full report) but are also heavily featuring them in their paid marketing efforts.

Notably, many leading AI Assistants are discovering that ad creatives featuring artistic depictions of animals are particularly effective. For example, over half of ChatGPT's ad creatives in the U.S. during June 2025 specifically depicted animals, including cats, dogs, and rabbits, underscoring the appeal of these lighthearted, creative AI applications.

In addition to leveraging image generation, AI Assistants are actively seeking to attract customers by highlighting practical, everyday use cases. For example, a recent Google creative showcases a user receiving advice from Gemini regarding a car's warning light.

Furthermore, both Microsoft Copilot and ChatGPT are strategically attempting to engage students. Copilot's advertising depicts a student efficiently creating a quiz from study notes, emphasizing its academic utility. ChatGPT proactively offered its premium service for free to students, directly providing students with a compelling incentive.

Beyond than AI Brands: Creatives Leveraging AI are Increasing Across Verticals

Using AI in messaging has spread well beyond tech-forward brands — it’s in every major vertical. From job training apps to wellness platforms to financial tools, brands are embedding AI not only in their products, but in the way they speak to consumers. 

The number of unique ad creatives with AI-related language increased more than 10x since early 2023, and the continued growth suggests that this is far from a passing fad.

Want More Insights on the Latest in AI? Read the Full Report

Read the State of AI Apps Report 2025 covering the latest on how AI is reshaping the mobile and digital advertising spaces, spanning 24 markets in a dynamic, interactive format covering:

• Audience Insights: See how the audience for AI has changed rapidly over the past few years and understand how to support demand for new user cases

• AI Across Verticals: AI is everywhere on mobile. See how top apps are adapting, proactively adding AI features to ward off competition from AI Assistants like ChatGPT.

• App Store Optimization: Discover the latest strategies to boost organic discovery, from screenshots to keywords to custom product pages

• Advertising Trends: Digital ad spend from Generative AI brands is picking up as top players compete for new users

• Advertising Strategies: Find out how top AI Assistants are trying to reach a more casual audience