Generative AI is at the epicenter of a major shift in advertising. Formerly a buzzword, AI is now the backbone of high-performing campaigns. AI-generated content, campaign optimization, and specialized agents give advertisers a competitive advantage, delivering measurable improvements in engagement, efficiency, and ROI.
Here’s what you need to know about generative AI-powered advertising and how to create delightful, relevant, and engaging customer experiences.
The impact of generative AI-powered ads and campaign tools
AI is transforming every layer of advertising for brands and consumers alike. From optimizing campaigns in real time using a deep understanding of search intent to generating creative ad copy that resonates at a personal level, generative AI tools help advertisers meet consumers where they are in their digital lives.
The tools are easy to use, simplifying key aspects of advertising campaigns that used to take hours each week. The result is an end-to-end system that’s more agile, more accurate, and far more aligned with consumers’ needs.
The results speak for themselves: AI-powered ads deliver 25% higher relevance compared to traditional search,1 and Copilot ad conversions have increased by 1.3x across all ad types since the November 2024 relaunch.2
Users are getting more comfortable with AI-generated ads. In fact, 40% of users say well-placed AI-powered ads enhance their online experience.3
For advertisers, the message is clear: It’s time to move beyond experimentation and step into execution.
Upskilling to get more from generative AI
Executing the full potential of generative AI starts with clearly describing what you want to create in natural language—also known as prompting. Whether you’re generating variations of ad copy or fine-tuning the details of an image, effective prompting is the key to using AI’s creative power while staying authentic.
Better prompting leads to better campaigns, and marketers who practice it are already seeing a surge in output. A significant 85% of marketers using generative AI say it’s improved their productivity across content and ad creation. Explore different skills, from specialized prompting for to how inclusive prompting can sharpen copywriting, image and video creation to how inclusive prompting can sharpen copywriting.
AI-generated creative: Smarter, faster, and bolder
Historically, campaign development was a slow climb with dozens of tiny steps to manage. Now, it’s a sprint fueled by AI. From strategic ideation to asset creation to performance testing, generative AI cuts your time to market while also boosting creativity.
What kind of results are brands generating with AI tools like Copilot in Microsoft Advertising Platform? Brands are cutting their time to market by using AI to generate ad copy variations and test creative instantly. They are launching ads in multiple languages using AI-powered localization, eliminating traditional translation delays. The use cases for generative AI are as diverse as the marketers leveraging it.
Features like Copilot in Microsoft Advertising Platform’s “Try a Different Tone” offer fast, real-world applications. With this tool, marketers can generate multiple versions of messaging and test them in seconds.
