App Marketing by App Masters AI-Generated Content: The Future of Ad Creation
May 10, 2025
In this discussion, Hamza Alsamraee, CEO of NewForm and a marketing visionary, shares insights on how AI-generated content is transforming ad strategies. He highlights the challenges of converting AI and user-generated ads, suggesting ways to improve their effectiveness. Hamza explains the integration of AI tools into marketing workflows and stresses the importance of data-driven decision-making. From TikTok strategies to personalized approaches, he emphasizes how to navigate the evolving landscape and maximize ad budgets.
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The Cost of Testing Ads
- Most creatives typically lose money initially in paid ads because testing is costly and many ads fail to perform.
- Testing budget efficiency and creative hit rate determine overall profitability, not just creative volume or cost alone.
Optimize Creative Testing Costs
- Track cost per creative winner to maximize testing efficiency and reduce wasted budget.
- Test enough quality ads to find winners instead of flooding with low-quality creatives, especially with AI-generated content (AIGC) which has a lower hit rate.
Creative Performance is Unpredictable
- Ad creative performance follows a normal distribution: many ads lose money, and great ads are rare and hard to predict.
- Even well-prepared teams experience variability, as some poorly perceived ads perform well and vice versa.