86% of Advertisers Are Using Gen-AI Video Ads by 2025: Here’s Why You Should Too

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In today’s fast-paced digital world, attention is everything—and keeping it is harder than ever. As platforms become more saturated and consumers grow increasingly selective, businesses are rethinking how they connect with their audiences. That’s where Gen-AI video ads come in.

According to a recent report by the Interactive Advertising Bureau (IAB), 86% of advertisers are already using AI-powered video ads, and that number is only climbing. By 2026, experts predict over 40% of all video ads will be AI-generated.

But what’s behind this explosive growth? And more importantly—how can you use this trend to grow your business, drive conversions, and save on ad spend?

Let’s break it down.

🔍 What Are Gen-AI Video Ads?

Gen-AI video ads (short for generative artificial intelligence video advertisements) are marketing videos created using AI tools instead of traditional production methods.

These tools can:

  • Script, animate, and voice videos automatically
  • Personalize ads based on viewer data
  • Generate multiple versions of the same ad for different demographics

Instead of hiring a film crew, actors, and a production team, businesses can now generate custom video content with just a few clicks—making this a huge opportunity for freelancers, solopreneurs, and small businesses.

💥 Why Gen-AI Video Ads Are Blowing Up

1. Massive Cost Savings

Traditional video production is expensive. Between scripting, filming, editing, and distribution—it’s often out of reach for small businesses.

AI tools like Pictory, Synthesia, and AdCreative.ai are flipping the script. They let you create high-quality, professional-looking video ads at a fraction of the cost. No studio, no camera, no editor. Just your message—and a few smart clicks.

✅ Example: A 60-second AI-generated ad can cost as little as $30, compared to $2,000+ for traditional video.

2. Scalability Made Simple

Want to run 10 different versions of an ad for different regions, languages, or audiences? Gen-AI makes this easy.

You can generate personalized variations using:

  • Different voiceovers
  • Adjusted scripts
  • Targeted visuals

This level of customization helps brands deliver hyper-relevant content—without extra production time.

🚀 Real-World Success Stories

Big brands are already proving that Gen-AI works.

  • Nike’s “Dream Crazy” campaign used AI to create personalized video ads. The result? A whopping 60% increase in conversions.
  • P&G’s Secret brand adopted Gen-AI for a series of video campaigns and saw a 25% bump in product sales.

These aren’t just flukes—they’re data-driven examples of how personalization at scale can deliver massive ROI.

🧠 How You Can Get Started with Gen-AI Video Ads

You don’t need to be a tech expert or creative genius to start. Here’s a simple framework to launch your first campaign:

Step 1: Choose Your AI Video Tool

  • Pictory – Great for turning blog posts into videos
  • Synthesia – Offers AI avatars and voiceovers
  • AdCreative.ai – Built for marketing ad creatives

Step 2: Define Your Funnel

Decide where your video will sit:

  • Awareness (Instagram, YouTube, TikTok)
  • Consideration (Landing pages, Email sequences)
  • Conversion (Retargeting, Sales pages)

Step 3: Script Your Ad

Focus on one clear message: What’s the benefit for the viewer?

Step 4: Customize and Export

Use AI to add:

  • Branded colors and fonts
  • Personalized call-to-actions
  • Targeted language

⚠️ Watch Out for These Pitfalls

Infographic showing the pros and cons of AI video ad production with a central trophy illustration
AI video ads offer efficiency and cost savings—but come with trade-offs like creative limits and technical challenges.

No strategy is perfect. Here are a few things to watch as you scale:

  • Generic messaging: Don’t rely entirely on templates. Always tweak messaging to suit your audience.
  • Lack of tracking: Make sure you’re using tools like Google Analytics, UTM codes, or built-in tracking features to monitor video performance.
  • Compliance: If your videos collect or process personal data (especially in the EU), make sure they’re compliant with privacy laws.

💡 Final Thoughts: Gen-AI Is the Future of Advertising

Whether you’re a solo blogger, clothing brand, digital agency, or eCommerce brand—Gen-AI video ads offer an unmatched mix of affordability, personalization, and scale. The sooner you adopt this approach, the faster you can stand out and grow.

And with tools becoming more intuitive and accessible, there’s really no reason not to dive in.