How AI is Changing the Economics of Advertising
Advertising has always been closely tied to cost. A good idea is only the beginning. Turning that idea into a campaign can require writers, designers, photographers, filmmakers, editors, locations, equipment, and weeks of coordination. For decades, this production cost shaped what brands were willing to attempt. AI is beginning to change that equation. The biggest change is not simply that AI can make an advertisement faster. It is that AI makes experimentation cheaper . A creative team can explore multiple visual directions, scripts, environments, characters, and formats before committing to a traditional production. Ideas that might once have been rejected because they were too expensive can now be explored first and evaluated later. This creates an interesting shift in the economics of creativity. When producing another version of an idea becomes relatively inexpensive, brands can afford to test more ideas. Instead of putting most of the budget behind o...