Brands are cautious about using Meta and Google’s new AI marketing tools

Holiday advertising evolves with AI: Major platforms like Google and Meta are encouraging marketers to incorporate generative AI into their holiday ad campaigns, but many brands remain cautious about fully embracing this technology.

• Meta’s holiday marketing guide promotes the use of its generative AI features within the Advantage+ ad platform, offering capabilities such as background changes, image resizing, and ad text variations.
• Google Ads is also recommending similar AI-powered tools for generating holiday imagery, creating image variations, and automatically adjusting headlines and descriptions.

Industry reactions and adoption rates: Despite the push from major platforms, agencies report that clients are hesitant to fully integrate generative AI into their holiday advertising strategies.

• Some brands are using AI for specific aspects of the creative process, such as idea generation and copywriting, but most major advertisers are not yet willing to relinquish complete control to artificial intelligence.
• Larger brands tend to be more cautious about adopting generative AI compared to smaller businesses, according to industry experts.

Small business opportunities: For smaller companies with limited resources, AI tools offer a way to reach audiences without the need for a media buyer or agency.

• Generative AI can help brands produce a higher volume of ads during the holiday season, especially those lacking in-house design or creative resources.
• The technology works best for brands requiring simpler ads and those with extensive image libraries to draw from.

Barriers and limitations: While AI-powered tools show promise, some marketers believe they are not yet advanced enough for customer-facing campaigns.

• Ashvin Melwani, CMO of supplement brand Obvi, has experimented with various social platforms’ AI creative tools but doesn’t consider them ready for live campaigns.
• The current state of AI technology may not instill enough confidence in marketers to fully automate their creative processes.

Future potential and video content: As AI creative features continue to evolve, they may offer more value to brands, particularly in the realm of video content.

• Video production is costly but crucial for many advertising strategies, making it a prime target for AI-powered solutions.
• Amazon has already launched an AI-powered video generator for advertisers, while Adobe and OpenAI have announced similar tools.

Balancing efficiency and brand control: Agencies are working with clients to determine the appropriate level of AI integration based on their comfort level and resources.

• Calla Murphy of Belardi Wong emphasizes the importance of ongoing conversations with brands about their willingness to trade some brand control for increased efficiency.
• The decision to adopt AI tools often depends on a brand’s creative resources and their comfort level with the technology.

Analyzing deeper: As generative AI continues to develop, its role in holiday advertising is likely to grow, but adoption rates may vary significantly across different types of businesses. While larger brands remain cautious, smaller companies may find these tools particularly valuable for leveling the playing field. The potential for AI in video content creation could be a game-changer, potentially reshaping the advertising landscape in the coming years. However, the balance between efficiency and maintaining brand identity will remain a critical consideration for marketers as they navigate this evolving technology.