How AI video creation is reshaping video advertising

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Good advertising moves people. It shapes perceptions, increases brand affinity, and drives real business outcomes.

However, television advertising and digital video advertising have long suffered from a glaring disconnect. Premium national ads can be spectacular, making you laugh, cry, or sometimes both within a 30-second spot.

Local advertising, on the other hand, has a reputation for being less impactful. Many films are remembered for the wrong reasons: clunky visuals, unconvincing acting, and directorial values that struggle to hold the viewer’s attention.

This rift has been going on for decades. But today, the strategic issues shaping how AI video is used, and how they threaten to widen or narrow the chasm depending on marketers’ responses, are less clear.

AI video is not yet a silver bullet

It is not surprising that quality disparities still exist. Local businesses may spend $10,000 on a single ad, while national brands often spend more than $500,000. The difference in resources is obvious from the first frame of the video.

Video creation using AI seems to be a natural equalizer. With the promise of turnkey “roll the dice” video generators and rapid content creation, many small businesses assume that AI will instantly level the playing field.

However, the current reality is more complex.

Most off-the-shelf AI video generators still suffer from limitations that marketers often don’t realize until deep into the creation process. Visual inconsistencies, variations in type quality, continuity issues, gibberish text, stylistic inconsistencies, and odd uncanny valley moments can all cause the final product to feel off-brand or unpolished.

These issues are rarely discussed at vendor demos, but in today’s critique-heavy era, they are more important than ever. Overlooked limitations have implications far beyond aesthetics.

Quality affects more than look and feel

The ramifications of low-quality or inconsistent videos produced by AI are far-reaching. They affect brand perception, reputation, and ultimately credibility. These are three non-negotiable values for local businesses.

When small brands unintentionally create AI-powered ads that look like low-budget ads, they end up reinforcing the very perceptions they are trying to shake. Poor quality leads to a loss of trust. In a market where consumers make instant decisions, quality determines whether an ad is acted upon or ignored.

An important question arises here. How should marketers think about the future role of AI video?

AI is the creative equalizer — if marketers understand its role.

AI is essentially the great equalizer. This gives small businesses the opportunity to produce video content that is significantly closer to the six-figure spot for national brands. AI can produce images that are so photorealistic that viewers cannot easily tell them apart.

In addition, the leading provider of audience research in the US has developed advanced algorithms to aid in script development and provide marketers with data-driven insights into what audiences respond to. Creative teams now have tools that combine visual generation with audience-centric strategies that once required large research budgets.

But despite these advances, understanding how AI works is still only half the battle. The other half is what this means for actual marketers.

AI eliminates many of the production barriers that have traditionally held small businesses back. But, at least for now, they can’t develop a resonant concept or craft a strategically sound narrative.

AI can generate images, but humans still generate ideas.

AI video takeaways for marketers

The takeaway for marketers is subtle but clear.

AI video can produce the highest quality visuals. AI video platforms can deliver images that rival those produced by major brands for thousands of dollars, despite ethical concerns.

Creative concepts created by humans determine the success of advertising. AI tools are only proving that the potential for high-quality production exists. But they don’t replace human-driven strategic thinking about the ideas behind the ads.

The speed and accessibility of workflows is fundamentally changing. AI allows marketers to iterate faster than ever before and test multiple narratives without incurring multiple production cycles.

These changes are paving the way for a new era in which the size of a budget is far less important than the strength of a brand’s creative thinking.

AI video levels the playing field and small businesses stand to benefit the most

For small businesses, AI-powered video creation has the potential to truly accelerate their marketing efforts. Whether on social media, local TV or emerging digital formats, brands of all sizes will finally be able to express themselves like never before at a cost they can afford.

AI can democratize human expression, and local businesses, long held back by traditional production economics, stand to benefit most. This is revolutionizing the way we write, analyze data, generate images, and create videos. And brands that embrace AI in video respectfully, strategically and creatively will succeed in this new environment.