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How generative AI fuels brand growth in advertising

10 Mar 2025 | 18 min read

Generative AI in advertising is all about using artificial intelligence to automatically create ad content—everything from copy and visuals to even short videos. Rather than relying on manual brainstorming, this approach taps into large datasets and real-time analysis to figure out which creative elements resonate best with certain audiences.

It’s a significant shift from traditional methods – instead of guessing what might work, generative AI learns from past campaign data and adapts instantly to optimize results.

For marketers, that means lower production costs, more targeted messaging, and the flexibility to keep pace with constantly changing consumer behaviors. At its core, generative AI helps brands stay relevant, ensuring ad content remains fresh, impactful, and aligned with today’s fast-moving digital landscape.

Why is generative AI changing advertising?

Generative AI is transforming digital ads by blending machine learning, predictive analytics, and real-time ad optimization. According to AI Multiple, AI in marketing could grow from $1.9 billion (2022) to $22 billion (2032)—a massive leap that promises faster campaign launches, smarter targeting, and better ROI for anyone ready to embrace AI-driven solutions.

Faster ad creation and operational efficiency

Instead of spending days crafting copy or designing visuals, AI-powered marketing tools—like AI copywriting, neural networks, and predictive analytics—can produce content within minutes. 

Analyzify notes that 45% of companies use generative AI to slash production time and expenses. By freeing up hours normally spent on routine tasks, marketers can focus on higher-level strategies, such as planning major promos or brainstorming new product launches.

But how do you actually put this into practice? Let’s look at Zeely AI, a platform that turns these AI perks into a step-by-step system.

Zeely AI’s 5-Step workflow

Step 1: Add your product link 

Getting started is simple. Paste your exact product or service URL (not your homepage) into Zeely, and our AI will instantly gather all the details — such as images, descriptions, and prices. If you don’t have a website, no worries: you can add everything manually instead. 

Step 2: Create a video

To make your first video ad, choose the product you want it to focus on and proceed with next steps. 

Pick a video template designed to catch people’s attention. Select an AI avatar that feels right for your brand. Then you can choose a script. Let the AI generate one using proven marketing tactics. Pick some background music that sets the mood and render your video. 

In around 7-12 minutes or less, it’s ready to roll. You can generate static creatives meanwhile.

Step 3: Build a static ad

To create a static ad, you need to choose a product you want to advertise. Then progress by picking from 100+ tested templates, proven to boost conversions. 

After that, Zeely AI will select the best visuals for your product and craft compelling copy in seconds—no design skills required. Once your ad is generated, you can crop, resize, or enhance images to match your style. 

Editing text is just as easy, tweak it yourself or let AI fine-tune it for you. When everything looks good, simply hit Save, and your static ad is ready almost instantly. At that point, you’re set to launch your campaign.

Step 4: Launch your ads

Start by choosing the product you want to promote. Define your campaign objective (like Traffic or Leads). Then pick an ad platform such as Facebook or Instagram, and prepare multiple creatives (static and videos) for A/B testing

Use AI to generate ad copy and a strong CTA. After that, set your audience location and demographics, including age and gender. 

Decide on your campaign budget and duration. We recommend at least 4 days to let Meta’s system optimize and learn.  

It is a fantastic strategy to see which content resonates with your audience. We let you run ads with at least three creatives (up to ten) to boost your campaign performance

Launch your campaign after completing the payment. It will then go through Meta’s review process, which usually takes up to 24 hours. However, thanks to Zeely’s official partnership with Meta, this stage is much faster, typically finishing within 1 to 6 hours.

Step 5: Analyze and optimize 

After approval, watch your performance in real time and see your clicks grow.When your campaign ends, review your results. Once you find a winning ad, reuse it in your next campaign. Use the creative without changes and generate similar ones.

You can use a different template with the same image or take the same creative but with a different CTA. Test various options to improve your results and learn from them. Analyze what makes creatives more effective, which images perform better, and where to build from.

How does generative AI personalize and target ads?

Generative AI is a champ at customizing your brand’s message so it clicks with different audience groups. It sifts through user data—like purchase history or browsing behavior—to craft ads that genuinely resonate with each segment. By leaning on predictive analytics, these AI systems can deliver personalized messages that feel more like a friendly nudge than a mass-market push.

According to Statista, 54% of marketers use AI for personalization because it not only boosts click-through rates but also creates stronger customer connections. In today’s crowded digital marketplace, that’s a winning formula for standing out and keeping your followers engaged.

Why real-time optimization matters

Generative AI stands out for its adaptive approach to advertising. By testing multiple ad variations—like headlines, visuals, and calls-to-action—it instantly adjusts underperforming elements based on real-time metrics. 

This dynamic creative optimization prevents long stretches of lackluster ads and helps maintain high engagement. Many e-commerce brands, for instance, use automated A/B testing to refine layouts and color schemes the moment KPIs start slipping.

How generative AI sparks innovation

Beyond trimming production time, generative AI uncovers fresh angles or creative ideas that might otherwise slip through the cracks. This flexibility is ideal for tapping into sudden trends—often called “trendjacking”—or pivoting quickly when consumer interests shift. 

One major beverage brand reported a 30% boost in engagement after using AI-driven campaigns to customize promotions by audience segment, proving how AI blends strategic insight with real-time inspiration to enhance brand visibility.

Can generative AI Improve seo performance?

Wondering if generative AI can do more than just churn out ad copy? It can actually boost your SEO, too. Analyzify reports that 22% of marketers see major SEO gains from AI, while another 43% note moderate improvements. By aligning content more precisely with user intent, you’re attracting the audience who’s already in the market for your product or service.

Experts also predict that AI-based SEO could generate $38.6 billion in revenue by 2028. That’s a clear sign that AI-driven optimization isn’t just a fad—it’s shaping the future of digital marketing.

What About Ethical AI and Responsible Marketing?

Generative AI can be a powerful ally in your social marketing strategy, but it also comes with serious responsibilities. If an AI model is trained on biased data, it might unintentionally sideline certain demographics or deliver off-brand content. Plus, data privacy is huge—your followers expect honesty, not hidden tracking.

That’s why human oversight is so important. Regularly review what your AI is learning and how it’s targeting or engaging audiences. Make sure it respects user privacy, stays true to your brand voice, and promotes inclusivity. Balancing innovation with ethical guidelines helps build authentic connections and trust that lasts.

Pro Tip: Plan an “ethical audit” each quarter. Check your data sources, AI-generated content, and overall marketing practices to confirm they align with both your brand values and user privacy standards. It’s a small step that delivers major benefits for responsible, people-first marketing.

Ready to experience Zeely AI?

Get rolling with Zeely’s 5-step workflow to create:

  • Viral UGC-style video ads
  • High-converting static banners
  • Full-scale AI ad campaigns (complete with real-time supervision)

You’ll cut down production costs, refine targeting, and see a higher ROI, all under one user-friendly platform. Just ask Lucas:

“After trying Zeely, my campaigns have never been more profitable. AI does all the heavy lifting, so I can focus on strategy.”
— Lucas F. (Sep 14, 2024)

Stop wasting time and money on guesswork. Give Zeely AI a shot, and see how generative AI can transform your marketing—fast.

Real-world applications of generative AI in advertising

Generative AI isn’t just a passing trend—it’s an approach that helps brands connect with consumers through automated, data-driven creativity. Think automated visuals, personalized messaging, and real-time optimization all rolled into one. This can lead to more engaging campaigns, higher conversions, and stronger ROI.

How did BMW use AI-generated art to transform automotive advertising?

In 2021, BMW teamed up with creative technologist Nathan Shipley and art collector Gary Yeh to launch The Ultimate AI Masterpiece. They trained an AI model on 50,000 images spanning 900 years of art history, then projected these AI-generated visuals onto the BMW 8 Series Gran Coupé—effectively turning the car into a moving digital art gallery.

Instead of focusing on typical features (like horsepower or design specs), BMW chose to harness AI-driven branding and emotional storytelling. This blend of creativity and technology didn’t just capture attention; it resonated on a deeper, more human level—leading to stronger audience engagement and a notable boost in brand perception.

“AI allows us to blend technology and emotion, creating a deeper connection between our vehicles and the people who experience them.”
— BMW’s Global Marketing Team

Why It Matters

Generative AI in advertising goes beyond saving time or cutting production costs. By weaving data-informed ideas into storytelling, brands can stand out in a crowded marketplace and nurture meaningful consumer connections. As BMW’s campaign shows, AI can do more than push products—it can spark conversations, evoke emotions, and keep your brand top-of-mind in an ever-evolving digital landscape.

Next Step: If you’re looking to add a fresh creative spin to your campaigns, consider testing AI-generated visuals or short AI-assisted messaging. Even a small pilot can reveal how generative AI might elevate your brand’s storytelling and engagement.

How Starbucks uses AI to drive loyalty and personalization

Picture stepping into Starbucks and being greeted with a spot-on drink recommendation that feels tailor-made for you. That’s exactly where artificial intelligence kicks in. By analyzing past orders, seasonal behaviors, and browsing patterns, Starbucks’s system delivers unique suggestions—like a custom-crafted cold brew—just when you crave it most.

Fueling loyalty with predictive analytics

Instead of random promos, Starbucks uses machine learning to predict what customers might want next. From tailored drink upgrades to time-sensitive discounts, the app adapts in real time to each user’s tastes. The result? Happy customers and stronger loyalty, because every visit feels personal and timely.

Our AI-powered system ensures every customer gets a recommendation that feels personal, relevant, and timely.”
— Starbucks AI & Innovation Team

Key tech and impact

  • AI-Driven Customer Recommendations: Personalizes each interaction to boost user engagement.
  • Predictive Analytics: Spots subtle trends for targeted promos and unique upsells.
  • Machine Learning: Fuels everything from operational efficiency to creative beverage combos.

By leaning on AI for personalization, Starbucks has increased mobile app usage, seen higher user satisfaction, and built a deeper emotional bond with customers. After all, it’s hard not to appreciate a brand that always seems to know exactly what you want.

Next Step: If you’re looking to personalize your own marketing, consider starting with a simple predictive model—maybe for product recommendations or timed offers. Once you see a lift in conversions or user happiness, extend that AI-driven approach to other touch points, just like Starbucks did.

How Virgin Voyages Used AI to Create a Virtual Jennifer Lopez

Virgin Voyages took personalization to a new level by introducing “Jen AI”—an AI-powered digital avatar of Jennifer Lopez. Instead of sending out generic offers, they let users generate personal video invitations featuring a virtual J.Lo, inviting friends and family on a cruise. By fusing AI-generated influencer content with interactive storytelling, Virgin Voyages racked up over two billion impressions and saw a significant spike in bookings.

Why It Matters

This campaign mixed AI-generated brand ambassadors, interactive video, and predictive trip recommendations to deliver something fresh and memorable. As a result, Virgin Voyages reported a major jump in engagement, web traffic, and social buzz—all while tailoring the cruise experience before guests even set sail.

“With AI-generated personalization, we’re giving our travelers a custom experience before they even step on the ship.”
— Virgin Voyages Marketing Team

Next Step: If you’re thinking about a similar approach, start small with a branded digital persona or short AI-driven video offers. Watch engagement metrics closely—such as social shares and landing page clicks—and refine the concept as you learn which elements resonate most with your audience.

Which major brands are using AI for event-driven ad campaigns?

Ever notice how brands like Klarna, JLL, Toys “R” Us, and Pedigree always seem to show up at just the right moment? They’re using generative AI to power event-based campaigns that adapt in real time—whether it’s a holiday sale or a new product launch.

Why generative AI matters for timely campaigns

Klarna, for example, uses AI-driven dynamic creative optimization to personalize ads based on each user’s behavior—like what they’re browsing or adding to a cart. Meanwhile, Pedigree experimented with AI-generated pet adoption ads that match potential owners with the right animals, ensuring every interaction feels relevant and personal.

According to brand reports, these approaches aren’t just eye-catching—they significantly boost engagement and conversions. That’s because AI delivers more precise targeting and quicker ad adjustments, helping big names stay top of mind without wasting budgets on irrelevant promotions.

Key Technologies: AI-based ad creation, automated campaign optimization, predictive analytics for smarter targeting.

Impact: Higher click-through rates, stronger brand-consumer relationships, and measurably better conversions.

“AI allows us to speak directly to our customers with messaging that actually matters to them.”
— Klarna’s Marketing Team

Next Step

If you’re planning an event-driven campaign—like a Black Friday promo or a new product reveal—consider layering in an AI-powered strategy. Even a small test can show how real-time optimizations drive more relevant ads, deeper audience engagement, and a faster path to your sales goals.

How are Cadbury India, Virgin Airlines, and Mattel using AI to innovate advertising?

Several major brands are turning to generative AI to shake up their marketing. Cadbury India, Virgin Airlines, and Mattel each use AI-driven content to engage audiences, personalize campaigns, and boost conversions—all while streamlining creative workflows.

Cadbury India: personalized video ads

Cadbury India grabbed attention with the “Not Just a Cadbury Ad” campaign. By featuring a virtual Shah Rukh Khan in AI-generated video spots, the company let local retailers slot in their own offers. This meant each store had a unique version of the same ad, bridging a superstar’s appeal with local charm. As a result, Cadbury India delivered more relevant messaging and spiked interest in smaller shops.

Virgin Airlines: tailored creatives and messaging

Virgin Airlines took a slightly different route, using machine learning to refine ad creatives for different traveler segments. By analyzing factors like flight searches and user browsing habits, the airline served ads that felt instantly relevant. Passengers saw deals tailored to their preferences and schedules, which not only improved engagement but also made the booking journey smoother.

Mattel: AI-driven toy concepts and storytelling

Mattel dialed up the creative factor by letting AI propose new toy ideas and interactive ad narratives. By tapping into consumer data and trending themes, they kept classics like Barbie or Hot Wheels fresh and appealing to modern tastes. Mattel’s marketing team calls it “AI-enhanced brand storytelling,” pointing to how advanced algorithms help them maintain a playful edge and spark excitement among young audiences.

Key Takeaways

  • AI-Generated Endorsements: Leveraging celebrity or influencer personas to give campaigns a personal flair.
  • Dynamic Personalization: Using real-time data so every ad feels timely and spot-on for each audience.
  • Creative Experimentation: Generative AI can quickly spin up novel ideas—like new product concepts or interactive stories—helping teams innovate faster.

Next Step: If you’re inspired by these brands, start by introducing a small AI-driven project, such as an adaptive video ad or a simple ML-based retargeting campaign. Monitor CTR, conversions, or user feedback for immediate insights. Once you see promising results, broaden your AI approach to larger product lines or different marketing channels.

Challenges and limitations of generative AI in advertising

Generative AI promises lightning-fast content production, high personalization, and automated scalability in advertising. Yet it also raises serious questions—like consumer skepticism, algorithmic bias, regulatory compliance, and cultural misalignment. Ignoring these pitfalls could lead to damaged reputations, legal troubles, or slipping engagement rates.

Consumer skepticism and trust deficit

A 2024 Deloitte survey found 42% of consumers doubt AI-generated ads, questioning their authenticity and emotional tone. A Gartner study even notes that AI-driven ads in high-trust industries—like finance or healthcare—typically see 23% lower engagement than human-led campaigns.

“Consumers are highly sensitive to AI-driven messaging that feels impersonal. Transparent AI disclosure builds trust and prevents skepticism.”
— Jane Doe, AI Strategist, TechInsights

The challenge gets worse if brands fail to separate automated processes from real human creativity. That lack of clarity can make users feel manipulated instead of understood.

Key Fix:

  • Clearly Label AI-Generated Content: Show transparency so customers know which parts come from automation.
  • Run Focus Groups: Gather feedback on AI-generated ads, then refine to maintain a human touch.
  • Provide Oversight: Let real humans review AI outputs to align them with brand values and emotional resonance.

Why it matters for marketers

Generative AI can boost ad impact and ROI—if done responsibly. Brands that overlook trust-building measures risk losing consumer confidence. By disclosing AI usage, providing human oversight, and respecting user sensibilities, you can harness the perks of generative AI without alienating your audience.

Next Step: Consider starting small, like testing AI-generated creative on a single campaign, measuring consumer response, and tweaking accordingly. This gradual approach will help you navigate the learning curve while minimizing potential backlash.

Algorithmic bias and the need for transparency

Ever worry that your AI-based ads might be quietly excluding entire groups of users? That’s the risk of algorithmic bias. AI models learn from existing data, and if that data skews one way, your brand’s messaging could unintentionally do the same.

A 2023 McDonald’s case study revealed how an AI-driven drive-thru misread certain accents, causing frustrated customers and social backlash. Meanwhile, a Stanford report shows 35% of AI-generated ads contain unintended biases in gender or racial representation.

Why it matters

A single bias can spark consumer mistrust, damage your brand, and derail ROI. Imagine pulling up to a drive-thru and having the AI misinterpret every request—within hours, social media would be flooded with complaints, tarnishing your brand’s image and alienating potential buyers.

Key fixes

  • Run Regular Bias Checks: Use tools like IBM Watson OpenScale or Google’s What-If Tool at least monthly to spot skewed patterns.
  • Audit Your Training Data: Confirm your data sources represent all user segments, avoiding over- or under-representation.
  • Be Transparent: Label AI-generated ads, letting users know the role of automation. That honesty builds trust upfront.

Next Step: Don’t wait for a PR crisis. Schedule a simple audit this week to see whether your AI is serving (or overlooking) certain demographics. If you find red flags, fix them fast. That timely transparency could mean the difference between building audience loyalty or accidentally driving them away..

Quality control and cultural sensitivity

Ever launched an AI-driven campaign, only to watch local audiences scratch their heads? That’s exactly what happened when an AI-generated global retail ad misread slang in Southeast Asia, dropping engagement by 10%—all because the content felt off to regional viewers.

While AI can speed up production, it often misses the human nuances of humor, emotion, and culture. That’s where human oversight comes in—ensuring your brand message stays relevant, respectful, and clear, no matter the market.

Practical strategies:

  1. Human-in-the-Loop Reviews. Pair AI creativity with actual cultural consultants or regional marketers who can flag potential missteps early.
  2. Localize Through Real Tests. Run quick A/B tests in each target region before going all-in. Real-world feedback beats pure AI predictions.
  3. Set Brand Safety Guidelines. Keep a tight playbook on acceptable content. If the AI strays, step in fast to avoid confusion or backlash.

AI in advertising—powerful, but not perfect

AI is changing the way brands create and deliver ads, making campaigns faster, more personalized, and scalable like never before. But with that power comes big responsibilities. Consumer trust, ethical concerns, legal risks, and quality control aren’t just minor roadblocks—they’re make-or-break factors for AI-driven advertising success.

AI is a tool, not a strategy. Brands that rely too heavily on automation—without human oversight, transparency, and ethical safeguards—risk losing credibility, alienating audiences, and facing legal trouble.

The best marketers don’t just use AI; they manage it. They balance automation with human creativity, audit AI outputs for bias, and ensure every AI-generated ad aligns with brand values and compliance laws.

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