Automation vs Control: Striking the Balance with AI

"According to an IAB report published last year, almost half of advertisers were already using generative AI to build video ads midway through the year, and 86% of buyers were using or planning to use it to build video ad creative. AI is now fully embedded into the entire advertising process, from the creation of ad creatives to campaign optimisation."

"Despite advertisers doing less of the heavy lifting themselves, they are still responsible for the outcomes they are producing, just as much as ever before. Is their role in shaping them narrowing?"

"Agencies are facing pressure from the rollout of AI tools that reduce the need for agency staff. Meanwhile, the ease of using many AI tools has led some brands to decide to take on marketing efforts themselves, instead of hiring agencies."

Advertising has traditionally centered on brand control and targeting specific demographics through carefully crafted campaigns. AI automation now permeates the entire advertising process, from creative development to campaign optimization. Nearly half of advertisers use generative AI for video ads, with 86% of buyers adopting or planning to use it. Meta plans full automation by year-end 2025, making AI the default option. Despite reduced manual involvement, advertisers retain accountability for results. This shift threatens traditional agencies as automation reduces labor-intensive work and enables brands to handle marketing internally, fundamentally transforming the industry from labor-intensive operations to efficiency-focused models.

Read at Exchangewire