Parabolica #11 - Case for Generative AI Video Ads

~7x lower CPA compared to UGC and stock footage

Cost. Flexibility. Speed. Performance.

Generative AI videos have high marks in those four categories. I can generate 3-5 distinct video concepts without an expensive GPU in 15 minutes.

How do they perform? You wonder.

I have creative test that’s been running a few days now for a health and wellness client. The AI video has ~7x lower CPA than stock and UGC footage. Everything about the 3 variants are the same from social proof, duration, to call-to-action.

Since performance marketing is about winning the attention game they’ll perform as well as your strategy permits. The people who say AI-videos aren’t ready for primetime yet misunderstand performance marketing.

Does that mean to stop testing stock or UGC footage? I wouldn’t go that far.

It means put AI-generated videos on your radar. In terms of monetary cost and time-savings, they are king.

You don’t need to pay Getty, a studio shoot, a creator, or a 3D motion graphics designer.

You don’t need to wait for your creator or designer to get your next creative test up and running.

More importantly, people forget the cost of inaction.

Your creative testing velocity is poor. Competitors gobble up your market share. You miss forecasts. Your company downsizes in this economy.

Want to see how I can help your ads convert with generative AI on paid social?