The cost of creating a sophisticated, multi-clip AI video ad, including all image and video generations, can be astonishingly low—as little as two dollars. This radical reduction in production costs democratizes high-quality video creation, making it accessible to nearly anyone, regardless of budget.

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GenAI transforms advertising's core pillars. It enables hyper-personalized creatives at scale, democratizes ad production for smaller businesses, and fundamentally enhances the two most critical functions of any ad platform: predicting user behavior and measuring campaign outcomes.

Advanced generative media workflows are not simple text-to-video prompts. Top customers chain an average of 14 different models for tasks like image generation, upscaling, and image-to-video transitions. This multi-model complexity is a key reason developers prefer open-source for its granular control over each step.

The traditional Hollywood production model, with its bloated crews and high costs, is unsustainable. AI will drastically lower production costs while audience preferences shift to short-form video. This dual threat will force a brutal economic reckoning and consolidation.

Don't view generative AI video as just a way to make traditional films more efficiently. Ben Horowitz sees it as a fundamentally new creative medium, much like movies were to theater. It enables entirely new forms of storytelling by making visuals that once required massive budgets accessible to anyone.

The largest advertisers on platforms like Meta launch over 10,000 new creatives a year, equating to more than 40 per workday. This massive scale of experimentation is manually impossible for most companies, creating a clear market need for AI platforms that automate and scale video production.

A systematic approach to AI video can reduce production time by over 90%. The process involves: 1) Finalizing the core idea, 2) Creating a detailed storyboard with scenes and dialogue, 3) Generating static reference images for each scene, and 4) Generating video clips and performing a final edit.

Successful AI video production doesn't jump from text to video. The optimal process involves scripting, using ChatGPT for a shot list, generating still images for each shot with tools like Rev, animating those images with models like VEO3, and finally, editing them together.

An AI-generated image is no longer a final product. It's the starting point that can be branched into countless other formats: videos, 3D assets, GIFs, text descriptions, or even code. This 'infinite branching' approach transforms a single creative idea into a full-fledged, multi-format campaign.

While large enterprises remain cautious about ceding creative control to AI, small and mid-sized businesses see a breakthrough. AI overcomes the economic barriers to content production, enabling them to execute personalization and campaigns at a scale that was previously out of reach.

The real economic value of generative video lies in advertising, not filmmaking. Unlike movies with finite consumption, there is unlimited demand for personalized, diverse ad content. This makes advertising a perfect fit for the technology's scalable content creation capabilities.