A new Teads Connected TV paper shows AI has firmly entered the mainstream of video advertising. Sixty percent of marketers now use generative AI to create scripts, voiceovers, and visuals, while others rely on AI tools for audience insights, performance analysis, and real-time optimization. The findings highlight a clear opportunity—marketers that combine AI’s scale and predictive testing with human oversight can build campaigns that are both efficient and distinctive.

Brands and agencies are embracing generative AI (genAI) to create highly localized and personalized campaigns at scale. At a recent Automattic event, marketing leaders highlighted how new technology makes previously cost-prohibitive efforts feasible. The advertising industry has shifted from fear to fluency—recognizing that AI fills gaps and scales output but that people decide what resonates. While agencies two years ago feared AI would displace creative jobs, today, they see human craft as the element that gives AI-generated work meaning. For marketers, the strategy is to invest in AI tools but prioritize upskilling teams to direct them.

Junior ad jobs are gradually disappearing as the industry faces upheaval. While overall ad jobs ticked up slightly earlier this year, employment is still trending downward—and younger workers are taking the brunt. Without a pipeline of entry-level talent, agencies risk eroding their long-term relevance.

Brands are testing the waters with AI-generated influencers as AI becomes a staple of advertising and everyday life. Telecommunications brand Vodafone is the latest to jump on the trend. Despite consumer hesitancy, AI is increasingly shaping the ad ecosystem, necessitating that advertisers take a balanced approach to leverage AI for its creative and operational potential without alienating consumers.

Meta will allow advertisers to exclude specific words or phrases from AI-generated ad copy to protect and align with brand image as it accelerates its AI advertising push. While barriers to adoption remain, Meta’s continued push toward AI ad automation signals where the future of advertising is heading: One where AI will increasingly balance scale with control to give marketers confidence in experimenting with automated campaigns.

The news: ByteDance’s TikTok paid people to lend their likenesses to digital avatars, often paying less than $1,000 per actor, per The New York Times. The avatars, which are free for TikTok advertisers to use, were meant for TikTok alone but have appeared on ByteDance’s video-editing tool CapCut and on platforms like Facebook and YouTube. Our take: AI-based productions are democratizing advertising, allowing even the smallest firms to produce high-quality ads with minimal effort and budgets. Forty-five percent of smaller advertisers will use generative AI (genAI) in their videos by 2026, per IAB’s 2025 Digital Video Ad Spend Report. However, brands must weigh the benefits against the risks, considering 31% of US adults say AI use in ads would make them less likely to buy, per CivicScience.

The news: Advertisers are broadening how they use AI tools for marketing campaigns beyond data analysis, per a report from DoubleVerify. Nearly half (46%) of advertisers plan to use AI for creating media strategies in 2025, up slightly from 2024. An equal percentage of marketers are using AI for bidding optimization and mid-flight plan optimization. Our take: Widespread AI adoption in marketing is inevitable as AI tools proliferate across industries. Success hinges on how, not if, marketers implement the technology. Consumers are more likely to trust brands that are transparent about how they use AI in their ad materials.

Q2 2025 earnings highlighted a widening gap among the major advertising holding companies. Publicis Groupe posted 5.9% organic growth and won major accounts from WPP and IPG, including Mars and Paramount. Omnicom remained stable at 3% growth, while Interpublic shrank 3.5% organically but improved margins ahead of its acquisition by Omnicom. WPP fared worst, slashing its full-year forecast and citing client losses and macroeconomic uncertainty. As brands tighten budgets and demand results, winners like Publicis are doubling down on performance and AI tools. The sector is consolidating—and only the most adaptive players are poised to thrive.

The trend: AI is no longer just a buzzword on the Croisette—it’s the centerpiece of Cannes Lions 2025, with executives demanding more than excitement. Amy Fenton of MarketCast and Grant Gudgel of Verve say this year’s focus is on how AI works in real life, not just on paper. Our take: Cannes 2025 is where AI must prove its value. From content creation to performance optimization, marketers are moving past experimentation and demanding results. Accountability, transparency, and real creative impact will be the true benchmarks. AI isn’t just in the spotlight—it’s being asked to deliver at scale, with substance.

US consumers will spend 8.6 hours daily with digital media in 2025. How they divide that time across devices is evolving as video content drives strong growth in connected TV usage.

Dozens of ads with AI voices found marketing illegal drugs on Spotify: The incident highlights the struggle to keep up with AI’s rapid development.

Digital ad giants beat Q1 expectations, but tariffs, regulation, and slowing growth signal choppy waters ahead. This report breaks down which platforms are thriving, which are stalling, and what’s next for search, social, streaming, and retail media.

Advertising’s AI obsession is upside down: While genAI dominates for content creation, agencies are sleeping on AI’s real strategic edge—like SEO, workflow automation, and data insights

AI-generated fake KFC ad emphasizes consumers’ AI concerns: The reaction underscores lingering fears over AI’s ethical implications.

OpenAI introduces 4o Image Generation: Usage is skyrocketing—but while advertisers are showing more acceptance, consumer sentiment remains a concern.

Unilever, Publicis emphasize AI: The companies are incorporating AI technology into their marketing efforts while maintaining a cautious approach that’s paying off.

Senators urge DOJ probe into X’s advertising efforts: The group of five Democratic senators allege that Elon Musk leverages his political power to bully advertisers into returning.

AI darlings split the spotlight: Anthropic’s $30 billion valuation underscores its safety focus and enterprise ties, while Perplexity, worth $9 billion, battles legal woes and bets on ads to stay competitive.

Voice assistants fumble the AI revolution: Despite genAI advancements, Big Tech’s assistants face stalled growth and disinterest from older users—Gen Z and parents of Gen Alpha might be their saving grace.

The year of AI: Artificial intelligence invaded all aspects of life in 2024, from work to play and generation to generation. New genAI players appeared to take on megaliths like Google and Meta. It would be a copout to say that 2025 will bring more of the same, but we expect startups to begin taking more market share from Big Tech and challenging the status quo.