The Era of AI-Generated Ads: Maximising Ad Performance with Generative AI

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In today’s fast-paced digital world, e-commerce companies are constantly seeking new and innovative ways to improve their online advertising efforts. One emerging technology that has the potential to revolutionize e-commerce advertising is Generative AI. With Generative AI, companies can, among others, automate copywriting, remove image backgrounds, and even create AI-generated ads that are relevant, better performing, and more visually appealing than ever before. As a reaction to this new trend, Meta just announced the introduction of Generative AI features that could benefit the work of many advertisers. 

In addition, a survey conducted in 2023 among marketing and advertising professionals (e-commerce is part of it) in the US revealed that 37% of respondents had already utilized generative AI to support their work-related tasks.

If you’re an e-commerce company looking to improve your online advertising efforts, here’s how you can leverage Generative AI to create better-performing ads.

The Benefits of Generative AI for Advertisement and Marketing

Source: YouTube, Coca-Cola, Retrieved on: 18.05.2023

Even today the vast majority of e-commerce companies still use replication and templating to generate ads. Just look at Coca-Cola’s most recent commercial ad: By using AI as a tool it managed to enhance its storytelling techniques by giving life to well-known artistic masterpieces while portraying a potential customer in need of some inspiration. With the rise of AI-generated ads, companies like Coca-Cola can now automate a lot of tasks without generating replicant content

By using AI to tailor ads for major ad networks like Google, Meta, or TikTok, advertisers can…

  • Create more beautiful and relevant ads than ever before.
  • Increase in performance marketing results of around 3-4X (as early examples suggest).

But the benefits of generative AI continue beyond there. Generative AI can also significantly impact a business’s overall marketing efforts: 

  • The more appealing AI-generated ads are to their target audiences the higher the effectiveness of newsletters and enhanced search engine optimization (SEO).

By leveraging product descriptions and user-generated content at scale, companies can also increase consumer trust and comfort, leading to higher conversion rates and ultimately, more sales.

Use Cases of Generative AI for Better Ad Performance

1. Use Product Feed Directly into Ad-Networks

One of the ways you can leverage Generative AI is by using the product feed directly into ad networks. By doing so, you can create ads that are more tailored to the product and its specific features. This not only leads to more relevant ads but can also help to improve click-through rates and conversions.

Example: Let’s say you are the Marketing Manager for a fictional e-commerce brand that sells organic pet food. You want to increase your brand’s visibility and attract more customers to your online store, so you decide to run a digital advertising campaign.

Fictional organic dog food brand created with AI

Source: AI-generated product listing ads with Canva (own prompt)

Traditionally, you would create ad copy and visuals for each individual ad, which can be time-consuming and costly. However, with generative AI, you can use your product feed directly in ad networks, automating the creation of ads tailored to your target audience.

To start, you upload your product feed to the desired marketing channel. Generative AI algorithms analyse the data in your feed, including product names, descriptions, and images, and use it to automatically generate ad copy and visuals that are highly relevant to your target audience.

The algorithm could create an ad for your brand’s salmon and sweet potato dog food, using the product’s image and description to generate ad copy emphasizing its benefits, such as being high in protein and grain-free. The algorithm may also use data on your target audience, such as their demographics, interests, and browsing history, to tailor the ad’s messaging and visuals to their preferences.

By using your product feed directly in ad networks, you can generate ads quickly and at scale, while ensuring that they are highly relevant to your target audience. This can lead to a significant increase in performance marketing results and indirect benefits such as improved SEO and consumer trust.

Tip: Lengow can be used to automate the process of creating and managing product feeds, while the generative AI tool can be used to generate tailored ads based on the data in the feed.

2. Add Custom Ad-Templates for All the Product Content in the Feed

Adding custom ad templates for all the product content in the feed involves creating unique and personalized advertisements for each product in your inventory. By doing so, you can make your ads more relevant and engaging to your target audience, which can lead to higher click-through rates and conversions.

 

Generative Ad Tool: Madgicx

One way to add custom ad templates is by using generative AI tools like Madgicx, which allows you to create unique ad templates for each product in your catalog automatically.

For example, if you are selling a clothing line, Madgicx can generate ad templates that showcase the different colors, styles, and materials of each product. This way, your AI-generated ads can highlight the different features of each product, making them more appealing to potential customers.

 

Generative Ad Tool: Google Web Designer

Another tool that can be used for creating custom ad templates is Google Web Designer. This tool allows you to create HTML5 ads that are responsive and can be customized to match your brand’s look and feel. You can use Google Web Designer to create custom templates for each product in your feed, which can then be used in your Google Ads campaigns. For instance, if you are selling a line of beauty balsams, you can create custom ad templates that showcase the balsam’s unique characteristics, such as its ingredients, skin type, and application method.

3. Automate Copywriting at Scale

One of the most exciting applications of Generative AI in advertising is automated copywriting. With Generative AI, you can create ad copy that is tailored to each product, while still being relevant and engaging to your audience. This not only helps to improve click-through rates and conversions but also reduces the time and resources required to create ad copy.

Example: An e-commerce company sells a wide range of sports equipment, including basketballs, footballs, and soccer balls. Using Generative AI, the company can create custom ad copy for each product in its inventory based on its specific features and benefits. The AI algorithm can analyze the product feed and generate ad copy that highlights the unique selling points of each item, such as the materials used, its size, weight, or even the specific use case.

The generated ad copy can then be further customized to align with the brand’s voice and tone. By doing so, the company can create ads that are both informative and persuasive while also maintaining a consistent brand message across all its advertising channels.

4. Image Background Removal for Your Whole Catalog

Another application of Generative AI in advertising is image background removal. You can automatically remove the background from product images, making them more visually appealing and professional-looking. This not only helps to improve the aesthetics of your ads but also helps to save time.

You can also automate image background removal for your whole catalog. This process involves removing the background of an image and leaving only the product, making it easier to showcase your product and grab customers’ attention. Traditionally, this process is done manually by a graphic designer, which can be time-consuming and expensive. However, with Generative AI, you can automate this process.

Example: A company that sells clothing can use Generative AI to automatically remove the background of images for their entire catalog. This can include product images of t-shirts, pants, jackets, and more. The algorithm can be trained to identify and remove the background from all types of clothing images, regardless of their color, shape, or texture.

This process can also be used for other industries. For instance, a company that sells furniture can use Generative AI to remove the background from images of chairs, sofas, tables, and more. This way, the product is the main focus of the image, making it easier for customers to see the product’s details and features.

5. Video Creation for Generating Video at SKU-Level at Scale

Finally, Generative AI can also be used to generate videos at SKU-level at scale. With Generative AI, you can create product videos that are tailored to each product, while still being visually appealing and engaging to your audience. Apply this to your strategy and you will see how your CTR and conversions will significantly increase.

 

Generative Ad Tool: Elai

Source: YouTube, Elai.io, E-commerce Use Case

One such tool that can be used for this purpose is Elai.io. The tool (or others) uses Generative AI to create product videos for each SKU in your catalog, including product shots and features. The generated videos can be customized with different styles, backgrounds, and music, making them more engaging and attractive to potential customers.

Example: Let’s say you own an e-commerce store that sells apparel and accessories. With such a video-generating tool, you can create hundreds of product videos for each SKU in your catalog with just a few clicks. Each video can showcase the product’s unique features, such as its color, texture, and fit, and even show it in motion, such as a dress twirling or a bag being opened.

These videos can then be used in your advertising campaigns, social media, and website to showcase your products in a more engaging way.

Boost Your Ad Performance!

Adrian Gmelch

Adrian Gmelch is a tech and e-commerce enthusiast. He initially worked for an international PR agency in Paris for large tech companies before joining Lengow's international field marketing & content team.

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