This festive season, you may have noticed strikingly realistic ads generated by artificial intelligence. Far from being a futuristic promise, this technology is already revolutionising and challenging the advertising industry.
The artificial intelligence revolution in advertising
Imagine a Father Christmas stuck in traffic with a McDonald's logo or a luxury Valentino handbag merging with a human body. Scenes that might appear to be the product of expensive production equipment are, in reality, the creations of algorithms. According to a study by IAB Europe, 60% of European advertising companies already use artificial intelligence to generate content, mainly because of the significant time and cost savings it provides.
Faster and more economical production... with less staff involved.
A clear example of this trend is this year's McDonald's Christmas advert. A hyper-realistic-looking spot, with families enjoying the snow, choirs singing songs and Father Christmas stuck in traffic, which in a traditional production would have required at least a hundred professionals. With artificial intelligence, however, only ten specialists were needed. Coca-Cola has also gone this route, producing 70,000 clips for its Christmas ad in just one month, when normally a campaign of this calibre would require almost a year of preparation. AI has managed to compress time and processes in a way never seen before.
Higher productivity, fewer jobs
This technological revolution comes at a critical time for the advertising industry. The productivity gains offered by artificial intelligence are already resulting in hundreds of layoffs, especially at large agencies that can take full advantage of the technology. WPP Group, which owns Ogilvy, has announced a 5% reduction in its global workforce, around 700 jobs, as part of a «strategic restructuring». Despite avoiding the term redundancies, its chief technology officer says AI «transforms» job roles, but job cuts are a palpable reality.
The entry of the big tech companies into the game
In addition, large technology platforms such as Meta and Google, which control approximately 70% of the online advertising market in Spain, could further strengthen their position thanks to this technology. Until now, their role has been limited to connecting advertisers with users, but with artificial intelligence, they will also start producing ads. Meta, which owns Facebook and Instagram, has announced that, from next year, it will not only distribute advertising, but will also generate images, videos and texts for brands, offering up to 4,000 different versions of the same ad adapted to different audiences.
In conclusion, artificial intelligence is revolutionising advertising, enabling the efficient and cost-effective creation of content, but also generating significant changes in the industry, with both positive and challenging impacts on employment and the way advertising strategies are developed.
Source: cadenaser.com
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