Baptism or Bloodbath: Insights on How Generative AI is Transforming Advertising

Published on
November 25, 2024

Last week, our team members Max Böckmann and Diana Bein attended ADZINE CONNECT – VIDEO ADVERTISING 2024 in Hamburg. The event brought together top marketing decision-makers, technology specialists, and industry leaders to discuss the latest trends in video advertising and Connected TV (CTV). For Max Böckmann, one standout session was the talk by Max Lederer, Chief Innovation Officer at Jung von Matt, titled Baptism or Bloodbath: Insights on How Generative AI is Transforming Advertising.

Here’s Max Böckmann’s recap of this fascinating presentation.

Generative AI: From Disruption to Transformation

Lederer delivered an eye-opening exploration of how generative AI is reshaping the advertising landscape. Far from being a tool that threatens creativity, AI is emerging as a critical enabler of human ingenuity and efficiency.

Strategic Use of AI: A Tool for Enhancement, Not Replacement

1. Personalization at Scale: AI is revolutionizing CRM by enabling highly personalized ads and landing pages tailored to individual users. Imagine an advertising world where every customer journey feels like it was designed just for them.

2. Augmented Intelligence, Not Artificial Intelligence: Lederer emphasized that AI should enhance human capabilities rather than replace them. “AI isn’t here to take your job—it’s here to make you better at it,” he explained. Companies are leveraging AI to support employees across all levels, driving efficiency and fostering collaboration.

Business Model Shifts: Scaling Creativity

1. Production Revolution

AI is slashing production costs and timelines, turning once-expensive tasks into accessible processes. “We went from spending €4,000 for a single photo shoot to €40 per AI-generated image. If that doesn’t shake things up, I don’t know what will,” Lederer noted.

2. From Bespoke to Standardized

Agencies are transitioning from custom campaigns to scalable product pipelines. This shift enables them to offer standardized, AI-driven solutions that create new revenue streams while maintaining creativity.

Practical Applications: Real-World Success Stories

1. Generative AI in Action

Companies like BMW are using AI-generated content to enhance customer engagement while significantly reducing time-to-market.

2. Language Models and Beyond

Real-time translation powered by AI is set to revolutionize global collaboration, removing language barriers and opening up new markets.

3. Efficiency Gains

For creative teams, AI automates repetitive tasks, freeing up time to focus on strategic innovation.

Challenges and Risks: The Other Side of AI

Lederer was candid about the risks associated with adopting AI:

1. Innovation Dilemma

Many businesses risk stalling innovation by clinging to legacy models instead of embracing AI’s transformative potential.

2. Big Tech Dominance

Emerging AI-driven input channels like voice interfaces could lead to monopolization by tech giants such as Google, Apple, and Amazon, making it harder for smaller players to compete.

Future Outlook: Creativity as the Differentiator

Despite the challenges, Lederer sees a bright future where AI empowers creativity rather than replacing it:

1. Content Explosion

AI tools will elevate the quality of user-generated content, blurring the lines between professional and amateur creators.

2. Redefining KPIs

Brands must rethink how they measure value in a world increasingly driven by user-generated and AI-enhanced content.

3. Creativity as the Core Resource

In a post-innovation era, human creativity will remain the ultimate differentiator. As Lederer humorously put it, “In two years, we’ll probably look back and think: Wow, that was cute.”

Max Böckmann’s Takeaway

Reflecting on Lederer’s talk, Max Böckmann shared, “The session was a great reminder that while AI is transforming how we work, it’s still creativity that makes the difference. Generative AI isn’t a threat—it’s a tool that allows us to innovate faster and push boundaries we couldn’t reach before.”

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