Advertising friends, be honest.
Seven-ish years into the transition to programmatic, where so many of us touted the promise of data for advertisers from conference stages, panels and podcasts, are we still seeing the results the data narrative promised?
The reason the industry ran with the data narrative is understandable. What marketer hasn’t dreamed of consistently delivering their ads to the right consumer at just the right moment? We wanted to hit the easy button on advertising and find endless reservoirs of perfectly targeted audiences to deliver ads to.
Meanwhile we’ve long known from a wealth of research that even the best media targeting and executions in the world only account for about 30% of campaign performance. So, all the data in the world is only ever going to get you a marginal lift in campaign outcomes (think ROAS).
Creative on the other hand accounts for somewhere around 70% of campaign performance on average. Yet few are talking about creative as a key driver of advertising performance.
The reason is also understandable. Programmatic media is seen as highly scalable. Automatable. Creative remains fundamentally artistic in nature. It is hard to get right. It can be expensive to produce. And it’s very difficult to tie metrics to and track in a dashboard.
But we believe that is about to change. It was already happening, now with the emergence of generative AI and automated creative versioning and testing tools, creative is finally catching up to its media counterparts, enabling unprecedented levels of scalability, testability, and optimization.
In this blog post, we'll explore how generative AI tools are helping break through the creative scalability challenges and why it's high time that creative technology caught up with the advances made in media buying.
The Creative Bottleneck:
While programmatic media buying has enjoyed significant advancements in recent years, the creative side of advertising has lagged behind. The lack of scalability in creative has often resulted in limited testing and optimization, which in turn constrains the true potential of ad campaigns.
According to Nielsen research, creative quality accounts for upwards of 70% of ad effectiveness. As such, it is crucial that creative technology evolves to match the scalability and optimization capabilities of programmatic media buying.
Generative AI: The Game Changer for Creative Scalability:
Generative AI tools are poised to revolutionize the creative aspect of advertising by automating the generation, versioning, and testing of ad creatives. These tools enable the rapid creation of multiple ad variations, tailored to specific audiences and marketing objectives, while maintaining brand consistency and quality.
By automating these processes, generative AI tools can significantly reduce the time, effort, and cost associated with traditional creative development, allowing advertisers to scale their creative output and test a broader range of ad variations.
The Benefits of Creative Scalability:
The integration of generative AI tools in advertising brings a host of benefits, including:
Improved Ad Effectiveness: With the ability to create, test, and optimize a larger number of ad variations, advertisers can identify the best-performing creatives and optimize their campaigns accordingly. This data-driven approach to creative management can lead to improved ad effectiveness and ultimately, better return on investment.
Increased Efficiency:
By automating the creative generation and testing processes, generative AI tools allow advertisers to streamline their workflow and focus on strategic initiatives and other core business functions.
Enhanced Personalization:
Generative AI tools enable advertisers to create highly personalized ad creatives that cater to the specific needs and preferences of their target audience. This tailored approach to advertising can result in higher engagement rates and improved overall campaign performance.
The arrival of generative AI tools and automated creative versioning and testing technologies marks a turning point in the advertising industry. By addressing the long-standing bottleneck in creative scalability, these tools have the potential to dramatically improve the effectiveness of ad campaigns and usher in a new era of data-driven creative optimization.
As creative quality continues to play a crucial role in the success of advertising campaigns, it is essential that creative technology keeps pace with the advances made in programmatic media buying. By embracing generative AI and the scalability it offers, advertisers can unlock the full potential of their campaigns and achieve unparalleled levels of success in today's competitive marketing landscape.
At Jetson Advertising Intelligence we’re helping marketers and advertisers to use human-in-the-loop AI to scale creative alongside their media and drive better outcomes for brands. If you run an agency, a brand or an ad tech firm we’d love to talk with you about Jetson Advertising Intelligence!
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