Icon Claims to Launch the First AI Ad Maker

Yesterday, AI startup Icon introduced what it’s calling “The First AI Admaker.”

Here’s how it works, according to Icon’s CEO Kennan Davison:

  1. Scene Tagging: Icon analyzes your video library and tags scenes (e.g., “close-up,” “unboxing”). These scenes become reusable clips—like Lego blocks for assembling ads.
  2. Script Generation: Use Icon’s AdGPT to generate scripts tailored to specific angles and audiences.
  3. Automated Editing: Icon matches the best clips to each script scene and assembles an ad that’s 80-99% complete.
  4. Final Tweaks: Edit using Icon’s CapCut-like video editor (CapCut is a widely used editing tool) until you’re happy with the final result.

This is an evolution from Icon’s initial launch a few months ago, when the company focused on AI-generated, TikTok-style videos featuring creators. Back then, creators licensed their likenesses (we assume) to be used in simple, direct-to-camera product promos. See an example of that here:

Icon is backed by Peter Thiel’s Founders Fund and claims support from executives at OpenAI, Pika, and Cognition.

Why This Matters

Don’t we already have AI ads? Kind of. But according to Icon, “AI-generated ads look like trash”—and that may be objectively true. I mean, look at this thing:

There’s a weird uncanny valley hollowness to AI ads that’s tough for the human brain to overcome.

To address this, Icon’s AI lets users remix existing creative and video footage, analyzing and matching production quality to ensure the brand aesthetic remains consistent. Essentially, it solves the “AI ads look bad” problem while also tackling the longstanding challenge of creative production by automating video assembly, scene selection, scriptwriting, and more.

Icon also aims to lower costs, offering brands its platform for $999 per year with the claim that “their margin is our opportunity.” In addition to AI-powered ad creation, the platform includes analytics, competitor “ad spying and cloning,” audience insights, and stock or custom avatars for AI-generated content (similar to what Icon initially launched months ago).

Experts React

Here’s the announcement from Icon:

Our Take

Will real AI ad innovation come from outside the usual players? Icon seems to think so.

The startup has been making noise on X by going direct-to-audience. That makes sense—they’re clearly working to win over that community and speak directly to DTC brands like Ridge, Jones Road, and Immi. DTC brands tend to adopt new technology quickly, especially when it helps streamline costs—freeing up more budget for ad distribution and media buying.

That said, Icon should engage more with the ad press. We have questions! The tech looks promising, but you have to wonder—is this just a better-packaged version of dynamic creative optimization (DCO)? That doesn’t seem to be the case, but it would be interesting to dig deeper.

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