Close Menu

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    Is Northern Virginia Still the Least Reliable AWS Region?

    Is Northern Virginia Still the Least Reliable AWS Region?

    Is Northern Virginia Still the Least Reliable AWS Region?

    Facebook X (Twitter) Instagram
    • Artificial Intelligence
    • Business Technology
    • Cryptocurrency
    • Gadgets
    • Gaming
    • Health
    • Software and Apps
    • Technology
    Facebook X (Twitter) Instagram Pinterest Vimeo
    Tech AI Verse
    • Home
    • Artificial Intelligence

      AI has become the norm for students. Teachers are playing catch-up.

      December 23, 2025

      Trump signs executive order seeking to ban states from regulating AI companies

      December 13, 2025

      Apple’s AI chief abruptly steps down

      December 3, 2025

      The issue that’s scrambling both parties: From the Politics Desk

      December 3, 2025

      More of Silicon Valley is building on free Chinese AI

      December 1, 2025
    • Business

      Top 10 cloud computing stories of 2025

      December 22, 2025

      Saudia Arabia’s STC commits to five-year network upgrade programme with Ericsson

      December 18, 2025

      Zeroday Cloud hacking event awards $320,0000 for 11 zero days

      December 18, 2025

      Amazon: Ongoing cryptomining campaign uses hacked AWS accounts

      December 18, 2025

      Want to back up your iPhone securely without paying the Apple tax? There’s a hack for that, but it isn’t for everyone… yet

      December 16, 2025
    • Crypto

      Solana Eyes Recovery as Investors Quitely Accumulate $345 Million Worth of SOL

      December 24, 2025

      What are the Top Crypto Narratives Worth Paying Attention to in 2026?

      December 23, 2025

      Ethereum Nears $3,000 as Bitmine Expands Holdings to 4 Million ETH

      December 23, 2025

      Three Financial Giants Predict Why Crypto Faces Its Hardest Test Yet in 2026

      December 23, 2025

      Russia Plans New Crypto Regulation for 2026

      December 23, 2025
    • Technology

      QNAP TurboStation TS-264-8G review: A powerful NAS with upgrade potential

      December 24, 2025

      PC prices could rise by 8% in 2026 due to memory shortages

      December 24, 2025

      Lumary Permanent Outdoor Lights Max review: Bright lights, bad app

      December 24, 2025

      HP’s OmniBook X Flip 2-in-1 plummets to $630 with a huge 40% discount

      December 24, 2025

      2025 was rough for Target. It could also be the year when its turnaround began

      December 24, 2025
    • Others
      • Gadgets
      • Gaming
      • Health
      • Software and Apps
    Check BMI
    Tech AI Verse
    You are at:Home»Technology»Marketers are keen to use generative AI in ad campaigns, but hidden costs lurk
    Technology

    Marketers are keen to use generative AI in ad campaigns, but hidden costs lurk

    TechAiVerseBy TechAiVerseDecember 24, 2025No Comments6 Mins Read0 Views
    Facebook Twitter Pinterest Telegram LinkedIn Tumblr Email Reddit
    Marketers are keen to use generative AI in ad campaigns, but hidden costs lurk
    Share
    Facebook Twitter LinkedIn Pinterest WhatsApp Email

    Marketers are keen to use generative AI in ad campaigns, but hidden costs lurk

    Marketers hope that using AI technology will cut down on time spent producing creative assets, allowing them to cut costs — or scale up their operations. In the campaign to cut weeks into hours, however, hidden costs remain.

    Top talent is scarce; human oversight and meddling eats into newly gained margins; and realizing meaningful economies of scale can mean investing considerable cash and time upfront in order to build a working creative assembly line.

    Though difficult to assign a dollar value against, each of them represent an underwater rock that might hole an AI-assisted creative team below the waterline.

    58% of marketers are using generative AI for content production, according to an October Gartner survey of 400 global practitioners. Semi-automated production systems like that pioneered by Unilever will be the goal of many advertisers — but setting up such an assembly line took over a year.

    “AI [production] is the equivalent of building your own house instead of renting someone else’s,” said Craig Elimeliah, chief creative officer, Code & Theory.

    That “house-building” work involved in that might involve legal consulting, deciding which LLMs are suitable for a brand’s needs, as well as the boring but necessary hours required to collate a brand’s identity and past output into a guide or brief digestible by a generative AI tool — as well as the trial and error, red herrings and dead ends involved in testing an automated system that handles something as commercially sensitive as a brand identity.

    It all takes time — unfortunate news when marketers also judge the success of such investments on the time they’re able to shave off ordinary processes (81% of marketers use time saved as the main KPI, according to the Gartner study).

    “The most costly thing is just the newness of the process,” said Dave Rolfe, global head of production at WPP’s production business Hogarth.

    One unexpected cost? Finding the staff to design, implement and then use such a system in an era when tech giants and advertisers alike are competing for AI skills. ”AI talent is hard to come by,” said James Thoams, global chief technology officer at Dentsu Creative.

    While everyday enterprise access to generative AI tools like Perplexity often comes in the form of a subscription, some AI companies have begun capping usage — instead selling credits back to companies that want more from their tech. OpenAI, for example, doesn’t publicly disclose pricing but offers credits as a kind of pay-as-you-go model for businesses using ChatGPT’s advanced features; it follows that intensive testing using a top of the line generative AI could prove pricey.

    At Optise, a company that provides B2B advertisers with a generative AI tool designed to improve the organic search performance of their websites and digital presence, CEO and co-founder Ómar Thor Ómarsson notes that usage credits can mount up. “If they’re using it to create content on the fly, a lot, that’s going to cost the company money each time,” he cautioned.

    Individually, those tokens a few dollars each and cover multiple uses, meaning each single prompt might cost just a fraction of a cent. But with some early campaigns involving tens of thousands of individual prompts — Coca Cola’s Christmas ad, for example, used 70,000 — those cents might turn into dollars.

    “Lots of undisciplined testing with big prompts and premium models can quietly add up,” added Ómarsson.

    With copyright battles between AI companies and authors ongoing, the legal implications of using one LLM over another remain in the back of some clients’ minds. It’s a worry that larger agencies have moved to take head-on, by offering indemnification to worried clients. WPP, for example, embedded a system of compliance checks into its WPP Open platform when it launched early last year. Brands building in-house won’t have the same air cover.

    “It is a concern,” said Rolfe. “You’ve got to do it into a contained system that is connected by our compliance standards,” he added.

    Farther down the line, it’s the humdrum human processes that add speed bumps. Approval processes within agencies, or on the client-side, become time sinks relative to the mere hours now required to actually make a film or still image.

    “The real cost isn’t generating assets, it’s generating your assets,” said Elimeliah. He added: “A single prompt can give you 200 like, pretty good options. But someone has to sift through and judge and refine. That decision work used to be invisible; now it is the job.”

    As a consequence, review meetings and approvals processes built for businesses that had to take a quarter to shoot and edit a brand film are costing advertisers time and, ultimately, money. “Client approvals are the new bottleneck. AI collapses the time it takes to make content but it does nothing to collapse the time it takes to approve the content,” said Elimeliah.

    “The gap is becoming the most expensive part of the pipeline; AI moves in minutes and clients move in weeks and months,” he added.

    Some organizations have overhauled the way they design their briefing processes in response. Other brands are using generative AI tools and specialized templates to refine briefs at an early stage. 

    “Most of my clients are now using gen AI specifically to develop higher quality, strategic creative groups to pass to their agencies,” noted Gartner analyst Nicole Greene.

    At Hogarth, Rolfe described how his production philosophy had been turned on its head. He said that, earlier this year, the company was able to reduce the time taken to produce promotional campaign materials for a telco client from seven to two weeks.

    While the time saving comes from generative AI usage, he said realizing economies of scale depended on moving from a mentality that prioritized capturing as much material as possible in a short space of time, to a “component mindset”. Post-production, in other words, has taken over the entire production process.

    Others look to automated systems that reduce creative quality control to a series of pre-flight checklists: Does a film use the right aspect ratio? Is the lighting consistent? Is the logo shown swiftly enough? How does it compare to the best performing 15-second film from your last campaign?

    Few marketers are comfortable with the idea of hands-off automation in these matters, however. 

    “AI content can be awesome and it can be awful. We’re all learning to trust… what’s coming out of the LLMs,” said Ómarsson.

    Share. Facebook Twitter Pinterest LinkedIn Reddit WhatsApp Telegram Email
    Previous ArticleIs Northern Virginia Still the Least Reliable AWS Region?
    Next Article 2025 was rough for Target. It could also be the year when its turnaround began
    TechAiVerse
    • Website

    Jonathan is a tech enthusiast and the mind behind Tech AI Verse. With a passion for artificial intelligence, consumer tech, and emerging innovations, he deliver clear, insightful content to keep readers informed. From cutting-edge gadgets to AI advancements and cryptocurrency trends, Jonathan breaks down complex topics to make technology accessible to all.

    Related Posts

    QNAP TurboStation TS-264-8G review: A powerful NAS with upgrade potential

    December 24, 2025

    PC prices could rise by 8% in 2026 due to memory shortages

    December 24, 2025

    Lumary Permanent Outdoor Lights Max review: Bright lights, bad app

    December 24, 2025
    Leave A Reply Cancel Reply

    Top Posts

    Ping, You’ve Got Whale: AI detection system alerts ships of whales in their path

    April 22, 2025537 Views

    Lumo vs. Duck AI: Which AI is Better for Your Privacy?

    July 31, 2025191 Views

    6.7 Cummins Lifter Failure: What Years Are Affected (And Possible Fixes)

    April 14, 202593 Views

    6 Best MagSafe Phone Grips (2025), Tested and Reviewed

    April 6, 202582 Views
    Don't Miss
    Uncategorized December 24, 2025

    Is Northern Virginia Still the Least Reliable AWS Region?

    Is Northern Virginia Still the Least Reliable AWS Region? This updated analysis is based on…

    Is Northern Virginia Still the Least Reliable AWS Region?

    Is Northern Virginia Still the Least Reliable AWS Region?

    Is Northern Virginia Still the Least Reliable AWS Region?

    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo

    Subscribe to Updates

    Get the latest creative news from SmartMag about art & design.

    About Us
    About Us

    Welcome to Tech AI Verse, your go-to destination for everything technology! We bring you the latest news, trends, and insights from the ever-evolving world of tech. Our coverage spans across global technology industry updates, artificial intelligence advancements, machine learning ethics, and automation innovations. Stay connected with us as we explore the limitless possibilities of technology!

    Facebook X (Twitter) Pinterest YouTube WhatsApp
    Our Picks

    Is Northern Virginia Still the Least Reliable AWS Region?

    December 24, 20250 Views

    Is Northern Virginia Still the Least Reliable AWS Region?

    December 24, 20250 Views

    Is Northern Virginia Still the Least Reliable AWS Region?

    December 24, 20250 Views
    Most Popular

    What to Know and Where to Find Apple Intelligence Summaries on iPhone

    March 12, 20250 Views

    A Team of Female Founders Is Launching Cloud Security Tech That Could Overhaul AI Protection

    March 12, 20250 Views

    Senua’s Saga: Hellblade 2 leads BAFTA Game Awards 2025 nominations

    March 12, 20250 Views
    © 2025 TechAiVerse. Designed by Divya Tech.
    • Home
    • About Us
    • Contact Us
    • Privacy Policy
    • Terms & Conditions

    Type above and press Enter to search. Press Esc to cancel.