Generative A.I. is creating custom advertisements for marketing brands

The future of advertising is experiencing a major shift thanks to generative artificial intelligence (AI). Platforms that have traditionally used complex machine learning to target ads are now leveraging AI technologies, such as chat GPT, to not only target but also create new custom ads. Julia Morrison delved into how this innovative technology could reshape the economics of the advertising business.

Revolutionizing Ad Creation

Generative AI is revolutionizing the advertising landscape by enabling brands to create ads using models that aren't real people. Companies can skip the traditional steps of hiring models and photographers. Scale AI, led by CEO Alex Wang, is at the forefront of this transformation. The startup, valued at over $ 7 billion, offers tools to marketing agencies and brands to blow up the bottleneck that slows down advertising teams.

Using clients' data sets, generative AI can instantly customize ad images, making it possible to generate tens of thousands, if not millions, of different ad variations for testing. This allows companies to optimize their return on ad investment (ROAI) by identifying which ads drive the highest engagement.

Other startups, such as chat GPT rival Jasper, offer AI software that accelerates ad content creation. Even Meta is working on generative AI capabilities to create ads, although for now, it only provides tools for A/B testing and refining ads quickly. Google has long integrated AI into ad creation and targeting but has not yet introduced generative AI options. Nevertheless, it's expected that generative AI technology will soon become ubiquitous, delivering instantly customized ads and likely better results for brands.

Controversy and Ethical Concerns

However, not all is smooth sailing for this AI-driven advertising innovation. Levi's faced backlash when it announced plans to use AI-generated models to create more diverse ads instead of hiring actual models of color. Critics argue that brands should be investing in real diversity rather than relying on AI.

Consumers might soon find it hard to tell whether the ads they are seeing were crafted using traditional methods or AI, stirring up concerns about the authenticity and integrity of advertising.

In the broader picture, this technology is part of a more significant transformation that AI will bring to every industry. Especially for those involved in ad creation—copywriting, shooting ads, and modeling—AI poses both an opportunity and a threat.

The Role of AI in Advertising

Talking to industry insiders reveals that many view AI as a complementary tool rather than a complete replacement for the creative process. AI can dramatically speed up the pace of iteration and innovation, allowing for quicker feedback and refinement.

The critical issue is identifying which jobs are at risk of being replaced and how humans can add value in the AI-driven landscape. Curating AI-generated content or developing creative prompts might be vital roles for humans in the future.

As brands like Adobe continue to announce new AI capabilities, it will be fascinating to watch how corporate standards and advertising guidelines evolve to accommodate this transformative technology.

Keywords

Generative AI
Custom Advertisements
Marketing Brands
Scale AI
chat GPT
Jasper
Meta
Google
ROAI (Return on Ad Investment)
Advertising Ethics

FAQ

Q1: What is generative AI and how is it used in advertising? A1: Generative AI refers to artificial intelligence that can create new content, such as images, videos, and text. In advertising, it is used to create custom advertisements by generating thousands of ad variations for testing and optimization.

Q2: How does Scale AI contribute to this innovation? A2: Scale AI provides tools that use clients' data sets to instantly customize ad images with generative AI, enabling the creation of numerous ad variations for testing and driving higher engagement.

Q3: What ethical concerns are associated with AI-generated advertisements? A3: Ethical concerns include the authenticity of the ads and the potential for job displacement for those traditionally involved in ad creation. There's also criticism, as in the case of Levi's, for using AI to simulate diversity instead of hiring real models.

Q4: How do industry experts view the role of AI in ad creation? A4: Many industry experts see AI as a valuable brainstorming and acceleration tool rather than a replacement for human creativity. AI dramatically speeds up the iteration process and aids in generating creative ideas.

Q5: What advancements can we expect from companies like Meta and Google? A5: Meta is working on generative AI capabilities, while Google, having integrated AI into ad creation and targeting for years, is expected to introduce generative AI options soon. Both companies aim to enhance the customization and efficiency of ads.