Online Advertisers Have Yet to Fully Tap Into the Potential of GenAI

The Rise of Mediocre Content and the Generative AI Debate

Marketers don't always see eye-to-eye, but there’s one issue gaining universal agreement: the flood of poor-quality online content is hard to ignore. The recent boom in generative AI has only intensified this problem, with some blaming the technology for a noticeable decline in media standards.

Generative AI has been in the spotlight for producing content that’s often odd or unpredictable. However, to say AI alone is responsible for the drop in quality content misses a larger point.

A Content Crisis Years in the Making

The truth is, we've been navigating a growing wasteland of mediocre content for quite some time, and AI isn’t the sole driver. The root cause lies in a confluence of factors, including the proliferation of new media platforms and an insatiable demand for content. Consider this: of the 403 billion gigabytes of online data created daily, nearly 54% is video, a figure projected to rise by 150% by 2025.

In an effort to keep pace with demand, brands have resorted to high-volume production and hyper-personalization strategies. However, these models have reached their limits, and the cracks are becoming all too visible.

Ad Fatigue and the Global Scale Challenge

Global advertisers have found themselves torn between two approaches: outsourcing production to low-cost markets or relying on automation for content generation. Many opt for a hybrid approach, combining both strategies to meet the ever-growing appetite for content.

Sophisticated production systems now integrate with media plans, enabling assets to be broken into layers and reconfigured for various ads. But this approach has its limitations. Template-driven solutions often stifle creativity, requiring additional post-production work to ensure the content resonates with its audience.

Consumers have become more discerning, quickly recognizing templated, generic ads. This flood of uninspired content has led to a widespread sense of ad fatigue. The average user, bombarded by a sea of sameness, now scrolls past ads without a second thought, resulting in missed opportunities for brands.

Evolving Consumer Expectations

There’s a clear disconnect between brands and their audiences. Today’s consumer is no longer content with irrelevant, overwhelming content. The era of simply pushing more content at users is over. What consumers want now is relevance and connection.

The key question for brands is whether they’ve truly understood their audience. Are they creating content that resonates, or just contributing to the noise? This is where generative AI can provide real value.

Generative AI: Beyond Templates

Generative AI, unlike templated content, offers limitless creative potential. While the technology may sometimes produce quirky results, that unpredictability is precisely what excites creative agencies. They see it as a powerful tool for early-stage ideation, a way to push the boundaries and test bold ideas.

When it comes to scaling content production, generative AI offers unparalleled flexibility. It breaks free from the constraints of templates, enabling advertisers to modify everything from copy to layout with ease. This level of control empowers brands to create high-quality, tailored assets without sacrificing speed or cost-efficiency.

AI-Driven Personalization at Scale

Generative AI allows brands to refine not only visuals—product images, logos, branding—but also the underlying message. With the right insights, AI can help craft ads that are deeply personalized, targeting specific demographics with precision.

The real excitement lies in automated prompting, which, unlike traditional tools, is virtually unlimited in its scope. Combined with data and analytics, this approach enables brands to create more effective ads based on proven consumer preferences and past performance.

The End of Template-Based Systems

It’s time to face a hard truth: Dynamic Content Optimization (DCO) and other template-based systems are no longer sufficient. These outdated tools lack the predictive power needed in today’s fast-paced, ever-evolving market. Generative AI offers a bold alternative, providing brands with the tools to stay agile, creative, and in tune with their audience.

In short, generative AI is not just the future of content creation—it’s a necessary evolution. The brands that embrace it will be the ones leading the way in this new era of advertising.