Gen AI cometh—whether you like it or not.
Unfortunately, the “or not” part is complicated. More on that later. But here’s the news: according to a new study from the IAB, “video’s transition to the future is accelerating, with half of advertisers already using Gen AI to build video ads.” Adoption is happening fast—tools are improving daily—and the IAB goes on to say that “GenAI is now essential for video ad creation,” with nearly 9 in 10 buyers either using or planning to use it.
Interestingly, small and mid-sized businesses are leading the way. That tracks: SMBs are often more focused on cost-cutting and may be more willing to experiment with AI, even amid ongoing concerns around copyright and IP—concerns that larger agencies and brands tend to approach more cautiously.
Why This Matters:
If you’re an agency that makes video ads, this matters. We’ve seen reports in recent days—WPP, for example—showing just how disruptive AI can be when brands choose to make video themselves rather than hand it off to a partner. AI-powered adtech startups might seem well-positioned to meet this demand, but there’s a catch: Big Tech players like Amazon, Meta, and Google are making it extremely easy to create video within their own platforms, often with seamless workflow integration. So, yeah—it’s complicated.
Adding another wrinkle, Adweek today just covered a new study from Raptive that should give Gen AI enthusiasts pause. According to the research, AI-generated content cuts reader trust in half and reduces ad performance. The uncanny valley effect around AI-made content is still very real. People notice—and it seems to diminish how they perceive the ad and the brand behind it. (We recently wrote about it being a possible brand safety risk — more here.)
Experts React:
Still, the Gen AI train isn’t just coming—it’s pulling into the station every five minutes. Here’s how IAB CEO David Cohen sees it:
“The economics of advertising are being transformed. As the costs of production fall, the opportunities for advertisers multiply. The pool of potential advertisers is growing, as it is easier than ever to plan, buy, optimize, and creatively connect with consumers utilizing new technologies across all forms of media. The democratization of advertising and marketing is entering an exciting new phase, and the outlines of a new future are coming into view fast.”
Our Take:
Video ad production has always been expensive. Now there are AI tools that can do it for a fraction of the cost. That, depending on who you are, is either exciting or existential.
But it’s also just math. And math wins. I learned that in school.
