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How Generative AI Changes The Future Of Ad Agencies

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AI disruption to the ad agency

Generative AI, or artificial intelligence, is poised to disrupt the advertising industry in a big way. You may think AI is disrupting all businesses, so why is the advertising industry singled out. Using AI to create new content is arguably more disruptive to jobs and the industry.

Traditional AI, for example, is designed to perform tasks based on rules and algorithms to improve efficiencies. It presents different threats and opportunities for businesses and people to that of generative AI. We’ve recently covered the topic of traditional AI vs generative AI, and you can read all about it here.

Automate The Creative Process

This business blog delves into what the future may look like for content creators like Ad Agencies. Today your typical ad agency is also your marketing agency. From creating content for blogs, social media posts, personalized ads and more, there’s a new kid in town called generative AI, and it is used to automate the creative process, which has the potential to revolutionize the way ad agencies work.

Adapt Or Die

But what does this mean for marketers and advertisers, and how can they adapt to this new landscape?

A Glass Half Full

Depending on your mindset, generative AI can help or hinder your progress as a business, marketer or Ad agency executive.

If you approach this new technology with a positive mindset, your glass is half full, and the future is full of new opportunities. You and your Agency will embrace generative AI in all its potential to provide benefits. There will be new roles, business efficiency, higher productivity, and new creativity that will attract new business.

Considering this outcome, with AI handling the creation of some aspects of an ad campaign, agencies can focus on higher-level tasks such as strategy and client relationships. We know the business is done through relationships, so imagine spending more time developing far-reaching, meaningful relationships with your customers.

Additionally, generative AI can help agencies create more personalized and targeted ads, leading to better engagement and conversion rates. By embracing this technology, ad agencies can stay ahead of the curve and provide even more value to their clients.

A Glass Half Empty

However, you may be like many people who can only see doom and gloom ahead with AI in their industry. There is a real fear that jobs in the ad agency will become redundant. Artificial intelligence is disrupting traditional job roles and responsibilities, and now generative AI will likely take over creative tasks too, such as:

  • Creating ad copy
  • Blog writing
  • Social media posts
  • Email marketing content
  • Designing graphics, images
  • Creating videos

Some agencies will quickly replace staff with AI tools, like a Chinese agency that now uses Microsoft as a client, which is heavily leaning on AI tools like GPTChat. Their position is using AI tools instead of human workers will streamline their operations. More agencies will follow their lead and implement AI tools to assist with copywriting and design tasks. For the Chinese ad agency, the move has resulted in the layoff of several creative individuals.

There is no doubting the upside of AI in advertising; many businesses see it as an opportunity to get more done for less cost. However, it remains a controversial topic for others as it raises questions about the role of human creativity in the industry.

Ethical Considerations

What are the ethical considerations for using generative AI in advertising?

As with any new technology, where human jobs are at risk, there are ethical considerations to consider.

Bias

Using generative AI in advertising raises one concern, the potential for bias in the data used to train the AI algorithms, which could result in discriminatory or offensive content.

Privacy

Ad agencies must also consider the impact of AI-generated content on consumer privacy and data protection.

Ethical Use Policy

Agencies must establish clear guidelines and ethical standards for using generative AI in advertising to ensure it is used responsibly and ethically.

How To Prepare For The Future

The future of ad agencies is rapidly changing with the rise of generative AI. To prepare for this shift, agencies must invest in employee training and education to ensure they have the skills and knowledge to work with this technology.

Ad agencies must also stay up-to-date on the latest developments in AI and be prepared to adapt their strategies and processes as needed.

Additionally, agencies must prioritize ethical considerations and establish clear guidelines for using generative AI in advertising to ensure it is used responsibly and ethically. By taking these steps, ad agencies can stay ahead of the curve and thrive in the age of generative AI.

Final Thoughts

It’s important to note that while generative AI can be a valuable tool for content creation, human expertise and creativity remain crucial.

AI-generated content should be reviewed, refined, and aligned with brand values and marketing strategies to ensure it aligns with the organization’s goals and resonates with the intended audience.

HubSpot