'Levels the playing field': How AI is helping SMEs break into TV advertising
Two years ago, AI video looked like a meme. Now, marketers are putting AI-assisted spots on TV and seeing real results. In 2025, 57.5% of brand marketers were already generating content with AI, and usage keeps climbing.
According to industry estimates, 30% of ads, social, and online video in 2025 were built or enhanced with generative tools, up from 22% in 2024, with expectations of 39% in 2026. The shift isn't hype. It's changing how teams budget, produce, and test creative.
Access and cost: why SMEs are paying attention
AI is lowering the production barrier that kept many smaller brands off TV. With tools and broadcaster programs, the spend moves from production overhead into smart media buys.
Spirit Studios was first to use Channel 4's Smart Ad Engine for a TV spot promoting its podcast The Good, the Bad and the Healthy (later The Unprocessed Truth). The 30-second ad, "Dream Mark," was built with Channel 4's creative team using AI as a collaborator-script, lighting, and sound included.
"We're using it in a grown up way," says Spirit Studios co-founder Matt Campion. "There's a lot of AI slop about… It is additive, rather than taking stuff away."
Campion's takeaway is practical: budget focus shifts to where you spend, not how you spend. That meant buying specific spots that actually moved the needle.
UK home builder Countryside used Channel 4's engine to launch its first TV campaign for Countryside Homes. The appeal was simple: trust in TV, plus reach at a price that finally made sense.
Quality is catching up
Early testing points in the right direction. System1 found AI-assisted ads it evaluated averaged 3.4 stars, vs. 2.3 across a broader database. About a third of viewers thought the work looked like a typical professionally produced ad; another third said it had a distinctive commercial style.
Even the big brands are in. Coca-Cola released AI-generated versions of its "Holidays Are Coming" Christmas ad in 2024 and 2025, pushing for technical precision, cinematic storytelling, and high production quality. If household names are experimenting at that level, the signal is clear: standards are rising.
Where AI actually helps marketers today
- Faster concepting: Turn briefs into multiple scripts, storyboards, and mood variations in hours, not weeks.
- Versioning at scale: Swap scenes, VO, offers, and CTAs for regions, retailers, or audience segments without rebuilding the whole ad.
- Pre-testing loops: Generate quick cuts, run small panel tests, and refine before you lock the edit.
- Budget reallocation: Spend less on production and more on precise placements, frequency, and reach.
What could hold it back
- Accessibility: Some broadcaster tools live inside walled gardens. Not every SME has the same entry point or support.
- Creative sameness: Over-templatized workflows can flatten brand voice. Guard against "AI slop."
- Control and rights: Model training data, likeness usage, and music/VO rights still need clear approvals and documentation.
- Team capability: Tools don't replace taste. You still need creative direction, marketing strategy, and QA.
A simple playbook for SMEs testing TV with AI
- Set one success metric: e.g., cost per incremental reach, qualified site visits, or branded search lift.
- Lock brand codes early: Distinctive assets, product in use, 1-2 key messages, and a clear CTA.
- Choose a production route: Broadcaster engines (e.g., Smart Ad Engine), indie studios using AI, or a hybrid with your in-house team.
- Prototype quickly: Produce 2-3 cuts (15s/30s), vary opening frames, and test for attention in the first 5 seconds.
- Buy specific: Prioritize dayparts, regions, and contexts that match your audience and budget. Fewer, smarter spots beat broad waste.
- Measure cleanly: Use unique URLs/QRs, consistent UTMs, and a simple pre/post framework for search, traffic, and sales signals.
- Document rights: Models, voices, music, and likeness permissions-keep a clear paper trail and label AI use if required.
- Iterate fast: Kill weak variants, scale the winner, and refresh creative before wear-out.
The bigger question
Broadcasters want new revenue, and SMEs want reach they can finally afford. The open question is whether AI can widen access without dulling the emotional hit that makes TV work.
Early signs say it can-if teams keep a human hand on strategy and taste. Tools help you move faster. Effectiveness still depends on clear positioning, smart media, and creative that feels like you.
If you want a structured way to upskill your team on this, see this AI certification for marketing specialists. For broader industry context, keep an eye on the IAB for evolving guidance and benchmarks.
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