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Formats & creative · also called GenAI ads, AI-generated ads

Generative AI in advertising

Generative AI in advertising is the use of AI models that create text, images, video, audio or code to produce ads, variations, targeting and campaign setups, often automatically at scale.

The short answer, from the AdTech Sumo glossary

Generative AI can write headlines, generate product images and backgrounds, create video and voiceovers, translate and localise ads, and suggest audiences and budgets. Major platforms have built it into their tools: Google's Performance Max and Meta's Advantage+ can generate or remix creative assets, and many DCO and creative platforms use it to make thousands of variations.

The benefits are speed and scale: small advertisers can produce professional-looking ads, and large ones can test far more ideas. The risks are real too: factual errors, brand inconsistency, copyright and likeness questions, bias, and a flood of low-quality AI-written pages. AI-generated content farms have become a notable part of the made-for-advertising sites problem, and deepfake-style ads are used in scams and malvertising.

Regulators increasingly expect disclosure of synthetic content, and platforms have introduced labelling rules for AI-generated or altered ads, particularly political ones. The AI boom is also changing where ads appear, with ads inside AI assistants and AI search.

Think of it like this

Generative AI in advertising is like giving a design studio a tireless junior who drafts a thousand posters overnight: fast and useful, but someone still has to check every one.

An example

An online furniture retailer in Brazil uses AI to generate 200 lifestyle backgrounds for 50 products, tests them via DCO, and keeps the 20 best-performing images.

Related terms