AI in Ads: The Best Viral Growth Strategy

1. Introduction: The Creator Economy Is Exploding—And Generative AI, Along with AI in Ads, Is Fueling Its Rise

By 2027, the creator economy will reach a jaw-dropping $480 billion, with AI in Ads playing a crucial role. Generative AI is not just a technology in 2025, it’s the key to producing today’s most compelling ad content. From show-stopping imagery to scroll-stopping copy, creators are using AI to construct impact-driven campaigns in hours, not weeks.

The creator economy may grow to around $480 billion by 2027, from $250 billion in 2023, according to Goldman Sachs.

In addition, 74% of marketers are already using at least one AI tool in their job, a dramatic increase from 35% last year, as per HubSpot’s 2024 State of Marketing Report. HubSpot

By 2026, companies expect to use AI in Ads and generative AI for 48% of social media content, an increase from 39% in 2024. Press Release Services

2. The Ad Agency’s Enhanced Toolkit—Generative AI in Ads Essentials

Generative AI in Ads solutions, such as content automation, hyper-personalization marketing, scriptwriting with the assistance of AI in Ads, advanced editing, and large-scale localization, are fundamentally transforming productions and agency workflows. Moreover, these AI-driven capabilities enhance efficiency and streamline creative processes.

However, proper tool and knowledge pairing is required to unlock their full potential. At Madgical, we’ve picked the most productive GenAI tools that integrate seamlessly into existing workflows with minimal learning required.

Applying known toolsets increases agency adoption and accelerates productivity. Having a single platform with a range of Generative AI capabilities also facilitates effortless collaboration and consistency.In selecting the proper tools, agencies can adopt AI-powered creativity without halting operations.

At Madgical, we’re continuously evolving our Generative AI offerings to keep our teams and partners ahead of the curve.

2.1 Text-to-Image Powerhouses

Utilizing AI technologies like DALL·E 3 and Leonardo.AI, instant high-resolution image creation, for instance, of a “vintage van on a sunset beach,” becomes a reality, enabling swift client approvals and iterations. Not only is prototyping accelerated but costs of production are also reduced by an average of 34%.

Incorporating AI-generated visuals into ad campaigns can boost engagement rates by up to 28%.This is achieved using improved product placement and more detailed brand storytelling, leading to increased audience engagement and improved marketing returns. SEO Sandwitch

• Facilitates instant generation of high-resolution images for swift approvals.
• Decreases production costs by 34% on average.
• Improves ad campaigns, elevating engagement by up to 28%.
• Enhances product placement and brand narratives for improved marketing outcomes.
  

2.2 Rapid Concepting and Client Approvals

Text-to-image generation and copywriting AI tools enable agencies to rapidly translate client briefs into several concepts for ads—visual and copy. As a result, this accelerates feedback and approval loops, therefore streamlining the entire creative process. (SurveyMonkey: 88% of marketers use AI every day)

It minimizes back-and-forth revisions, which saves time and effort. (National University: 70% of business owners think AI makes content creation faster)

• Accelerated turnaround from brief to concept.
• Faster client approvals & less revision cycles.
• Saves creative time and budget.
• Enhances high-volume content creation.

2.3 Video Generators

Artificial intelligence video software such as OpenAI’s Sora and Lumen5 transform short scripts into professionally-produced video ads. This does away with the need for conventional filming and accelerates content creation.

Companies can simply scale video content across various channels—from brief Reels to entire YouTube campaigns.In its latest survey, Wyzowl finds 89% of companies currently employing video as a marketing cornerstone.

• 88% of marketers consider video a necessity for engagement and conversion.
• AI capabilities reduce production time and cost.
• Content can be effortlessly translated between formats.
• Ideal for fast, targeted video rollouts.

2.4 AI Copy Machines

Through AI copywriting software like Grok and Copy.ai, marketers can effectively generate strong taglines, ad scripts, and campaign narratives quickly. As a result, this enables consistent brand message delivery across various marketing channels. Not only does the speed hasten the content-creating process, but also the efficiency enhances conversions. HubSpot Blog

Additionally, AI copywriting allows for ad copy optimization in order to achieve maximum conversion, providing measurable return for customers. For example, companies have seen their engagement with new prospects rise by 25% after using AI tools. Axon Garside

• Ensures consistent messaging across marketing channels.
• Increases prospect engagement by up to 25%.
• Optimizes ad copy for better conversions and ROI.
• Speeds up content creation for campaigns.

2.5 Voiceover Wizards

AI-based software such as ElevenLabs, Hygen, and Vidnoz support professional-grade voiceovers across many languages and tones. They do away with costly studio sessions.

This makes it possible for brands to achieve consistent high-quality audio on all video and voice assets strengthening brand identity. New York Post

• AI voiceovers speed up production and consistency.
• Firms have achieved up to 80% savings with AI. Forbes
• Perfect for multilingual campaigns at scale.
• Perfect for content creators who want volume and shine.

2.6 Beat Makers

Machine music software like Soundraw, Mubert, and Suno.AI make tailored, copyright-free music for specific campaigns and segments. In addition, they enable engagement using unique, campaign-defined soundtracks, which are free from the complications of copyright issues. (Music Industry Blog)

• The global music industry has the potential to touch $89.1B by 2030 (up from 72%).
• AI music simplifies audio advertising creation.
• Maintains content up-to-date, consistent, and rights-safe.
• Plays brands ahead in a rapidly changing field. (MIDiA Research)

Here’s a step-by-step breakdown of how to create an advertisement video using the Generative AI tools we’ve covered.

3. Real-World Impact of AI in Ads for Ad Agencies

Generative AI is more than a buzzword—it’s driving quantifiable outcomes for ad agencies across the board. From quicker turnarounds to higher client ROI, agencies are realizing real value from incorporating AI into their processes. The case studies below illustrate how GenAI is transforming creative operations and campaign effectiveness in action.

Case Study 3.1: JP Morgan Chase’s AI-Powered Copywriting

Background:

JP Morgan Chase, an international finance services company, aimed at enhancing its digital marketing performance, specifically its click-through rates (CTR) for its ads.

AI Implementation:

The firm worked with Persado, an artificial intelligence-driven copywriting technology, to create ad copy through natural language processing (NLP). The AI worked through vast libraries of effective ad copy and created optimized versions specifically for different segments of buyers.

Results:

• 450% increase in click-through rates above normal human-generated copy.
• More engaging and interactive copy, leading to higher conversions.
• Significant time savings in ad development with automated content generation.

Key Takeaway:

Language generation by AI can optimize ad messaging, hugely enhancing customer engagement and marketing ROI.
Source: Instreamatic

Case Study 3.2: Nike’s AI-Generated Advertising Campaign

Background:

The well-known sportswear brand, Nike, wanted to establish a strong campaign for advertising on the occasion of its 50th anniversary and attracting sports lovers globally.

AI Implementation:

Nike employed AI-driven video creation to produce a ‘Never Done Evolving’ campaign with Serena Williams. Specifically, AI reviewed previous video footage of Serena’s matches and then virtually recreated a simulated game of tennis between her younger self and present self.

Results:

• High levels of engagement, with millions of views on social media.
• Brand recognition boosted through creative AI-driven storytelling.
• Proved AI can amplify nostalgia marketing, building emotional connections with consumers.

Key Takeaway:

Videos created with AI can make extremely engaging content by reframing classic footage, opening up brands to exclusive storytelling opportunities.

Source: DataFeedWatch

Case Study 3.3: Omiana’s AI-Driven Advertising Strategy

Background:

Omiana, a clean beauty company, struggled to scale its ad campaigns at a cost-efficient and engaging manner.

AI Implementation:

Omiana collaborated with Omneky, an AI advertising platform, to measure customer data and produce optimized ad creatives based on various demographic groups. As a result, the AI made dynamic changes to ad imagery, text, and targeting approach in order to achieve maximum performance.

Results:

• 3.5X return on investment (ROI) for AI-optimized ad campaigns.
• 200% year-over-year sales growth, demonstrating the ability of AI to scale brand engagement cost-effectively.
• Quantifiable reduction in ad production costs with boosted engagement metrics.

Key Takeaway:

AI-powered ad personalization enables brands to create personalized content at scale, driving both efficiency and customer engagement.

Source: Omneky

4. Strategic Advantages of AI in Ads for Ad Agencies

4.1 Faster Turnarounds

AI in Ads technologies allow ad agencies to speed up campaign creation and deployment, cutting the time it takes for brainstorming, content creation, and editing significantly. With assets created by AI in Ads, agencies are able to produce high-quality copy and visuals within minutes instead of weeks, helping brands keep pace with trends and market needs.

4.2 Lower Costs

Through automating different stages of ad creation, AI assists agencies in reducing costly design, photography, and video production fees. This enables companies to utilize their budgets better, maximizing the spending on advertising while ensuring good quality creative content. AI-driven automation also reduces manual intervention needs, cutting down labor costs to a great extent.

4.3 Hyper-Targeting

AI in Ads scans enormous amounts of consumer data in order to tailor ad copy for various audience segments. This means each ad will speak to its target audience in a more effective way, resulting in increased engagement and improved conversion rates. AI in Ads-derived insights enable more precise targeting approaches, which optimize campaign performance and return on investment.

4.4 Enhanced Creativity

With AI-powered tools, agencies have the ability to unlock new creative potential by creating novel concepts, imagery, and ad variations in bulk. Furthermore, AI in Ads can help with ideation, while also proposing new design elements, and even aid in storytelling. As a result, this allows brands to differentiate themselves in an increasingly crowded advertising landscape.

4.5 Data-Driven Decision Making

AI-driven analytics provide up-to-the-minute insights on ad performance. This lets agencies fine-tune campaigns using hard facts rather than guesswork. By looking at engagement rates analyzing sentiment, and spotting trends in conversions, agencies can tweak their ad strategies to get the best results and efficiency.

5. The Future of Generative AI in Advertising

5.1 Prediction:

Advertising agencies will natively incorporate AI tools into their processes, therefore allowing real-time content creation and automatic campaign optimization. Moreover, AI-powered insights will assist brands in optimizing visuals, copy, and targeting in real time, resulting in more effective ad performance and better audience engagement on various platforms.

5.2 Challenge: Maintaining Authenticity

As AI boosts efficiency, agencies need to make sure that ads have an authentic and human feel. Otherwise, synthetic or robotic content can turn people off. Therefore, balancing AI-created creativity with human instinct will be the secret to creating engaging, emotionally charged campaigns that establish enduring consumer trust.

5.3 Ethical Concerns:

With the increasing adoption of AI, there are issues regarding deepfakes, copyright, and adaptation of the workforce. Consequently, having strict policies on AI-generated content, along with transparency in the creative process, and finding a balance between automation and human touch will be imperative to ensure ethical advertising practices.

5.4 Opportunity: Niche GenAI Solutions

AI will also unleash industry-specific advertising innovations from automated in-game product placement to AI-powered fashion campaigns. Agencies that include specialist GenAI tools will build a competitive edge, offering customers unique data-driven ad approaches aimed at specialist markets and the new digital media.

6. Conclusion & Call to Action

• Generative AI is revolutionizing the advertising scene, enabling agencies to create faster, more impactful, and lower-cost campaigns. With AI-driven tools, brands are able to automate ad creation, personalize content, and boost engagement to previously unimaginable levels.
• Ad agencies that use AI-creative ad creatives achieve 30-50% more ROI. This clearly demonstrates the potential of AI to optimize marketing performance. Furthermore, AI-driven strategies help maximize efficiency and improve overall campaign effectiveness.
• At Madgical, we equip agencies with state-of-the-art GenAI solutions that are designed to speed up innovation and efficiency. Our solutions enable you to be at the forefront, making your campaigns not only on the bleeding edge but also highly effective.
• Schedule a demo today to see how our GenAI solutions can transform your ad creation process. Let’s create the future of advertising together!

Further Reading

1. Skyrocket Sales: The Ultimate Guide to Recommendation Engine
2. AI Chatbots: Discover how to reap its benefits
3. Why companies turning to a Fractional CTO for growth?
4. How to make your OTT users search experience lightning fast?
5. How GenAI Boosted OTT Company Growth to New Heights?

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*The views are of the author and not necessarily endorsed by Madgical Techdom