From Viral Stunts to Prime-Time: AI Ad Studios Go Mainstream

AI Studios are Reshaping Creative Advertising-Here's What You Need to Know

AI-generated ads have crossed from internet sideshow to big business. The Dor Brothers, a German company that once went viral with AI videos of political figures in outlandish scenarios, now attract corporate clients and investor attention as a new breed of content studio. Their larger ad spots can run around €200,000 (roughly $235,000), a price that's turning heads in a sector eager to save on production costs.

This shift isn't happening in a vacuum. Advertising giants like Google and Meta-both fundamentally ad companies-pioneered much of today's AI technology. It's only logical that marketing teams are now leaning into AI, using it for everything from brainstorming and media buying to full-blown ad production.

Brands Are Already All-In on AI

The appetite is clear. An April report from Basis Technologies found 76% of global ad agencies plan to increase AI investment this year, with 70% already deploying it several times weekly. As Yonatan Dor puts it, the beauty of AI lies in its unpredictability: you can spin up a video, spot something unexpected, and run with it. But not every marketer is ready for that creative looseness-many still want traditional storyboarding, which dampens what makes AI interesting in the first place.

Major consumer brands have already tested the waters. Coca-Cola and Toys "R" Us have published AI-driven ads, while Meta is preparing tools for brands to build personalized campaigns by next year. With both AI tools and ad distribution platforms in their arsenal, Meta and Google are positioned to become one-stop shops for marketers.

The New Workflow: Fewer People, Different Skills

Producing AI ads isn't about massive crews or traditional sets. Instead, it's about creators who know their way around tools like Google's Veo 3, Kling AI, and Midjourney. This shift means small and mid-sized companies can suddenly afford production-grade campaigns that would've been out of reach before.

One of the Dor Brothers' most viewed spots, aired in Times Square, showed a bull and bear dancing on Wall Street for Israeli trading app eToro. The company's head of creative marketing, Shay Chikotay, noted he wasn't worried about the studio's edgier projects. eToro has also tapped LA-based AI studio Secret Level and creator László Gaál, making AI ads in-house and externally.

"The agility and production costs of working with AI are significantly lower, which means we create better ads," Chikotay explained. AI also lets the company create commercials in multiple languages and tailor content to specific locations, leading to what he described as a "much more human experience."

As he put it: "It's the golden era of production and advertising."

The Economics: More Impact, Less Overhead

This isn't just about style-it's about dollars and cents. Earlier this year, betting marketplace Kalshi ran an AI-generated ad during the NBA finals. PJ Accetturo, the former TV producer behind the spot, made it "in like two days in my underwear." His studio, Genre.ai, charges around $100,000 for a 30-second commercial, but spends just a few thousand on AI tool credits.

The ad featured alligator wrestling, jet ski chases, and explosions-scenes that normally cost six or seven figures. With AI, those budgets shrink dramatically. "If you can compress six- and seven-figure budgets into five figures-where you're getting 90% of the same look and fidelity-why wouldn't you switch to AI?" Accetturo asks.

What This Means for Creatives and Influencers

Brands have already shifted ad spend to influencer marketing-expected to hit $33 billion globally this year, up from $1.7 billion a decade ago, according to Influencer Marketing Hub. Working with influencers allowed companies to cut costs and offload production headaches. Now, AI studios are offering those same advantages-with even greater speed and flexibility.

Will AI replace influencers? Not likely-some products, like skincare, still sell best with a human face in the mix. But as AI studios claim more marketing budgets, creators will face stiffer competition, both from each other and from technology. There's also opportunity here: creators who learn to work with AI tools will be better positioned to ride the next wave of creative work. If you want to adapt or upskill, check out the latest AI courses for creatives.

Not Everyone's Impressed

Some industry insiders see today's AI ads as gimmicky and weak. Coca-Cola's AI Christmas ad last year was called "soulless" and "devoid of any actual creativity," sparking a PR headache. A 2024 YouGov survey found nearly half of consumers worldwide feel "uncomfortable" seeing AI in ads.

But the industry isn't worried about mass layoffs. WPP Chief Technology Officer Stephan Pretorius put it simply: "AI replaces tasks, it eliminates tasks, it doesn't eliminate jobs." The commercial models, team structures, and incentives are shifting-but that's the transition, not the end.

Key Takeaways for Creatives

• AI ad production is leaner, faster, and far less expensive than traditional methods.
• Brands are moving budget to AI studios, and the skills needed are changing.
• Influencers and creatives who adapt to AI tools will stay relevant-and may find new opportunity.
• Some consumers and industry voices remain skeptical about the creativity and authenticity of AI-generated ads.

Want to sharpen your skills for the next era of creative work? Explore AI training by creative job role to stay ahead of the curve.