The only thing constant in digital advertising is change - and that’s never more true than when AI became a mainstream tool for marketers to leverage. Google and Microsoft Ads are now offering AI-generated image and video assets that can transform the way brands approach creative production. These AI tools allow advertisers to create engaging, high-quality visuals at scale with minimal manual intervention.

But AI isn’t always the right choice. In this blog post, our Search Strategists are breaking down the current capabilities of AI-generated creative in both platforms, discuss when to use platform-generated vs. custom assets, and provide a how-to guide for using these tools in-platform.

Google Ads: AI Creative Generation

Google’s recent introduction of Product Studio and enhanced AI tools for video creation has expanded its offering of AI-generated assets. Product Studio, a component of Merchant Center Next, now allows advertisers to automatically generate videos by combining existing product images and text, providing an easy and efficient way to create dynamic ad content. This is particularly valuable for advertisers running large-scale campaigns in Performance Max or Shopping, where creating custom video assets for every product or campaign variation would be time-consuming and expensive.

In addition to Product Studio the Google Ads platform also offers AI-powered image editing, such as background removal, removal or addition of objects, color adjustments, cropping, and more to further optimize visual creatives. These capabilities enable advertisers to quickly adjust and improve product images without the need for specialized design tools. You can even generate completely new images using prompts.

However, it’s essential to recognize when these AI-generated assets may not be the best fit. While these tools offer speed and efficiency, they might not provide the same level of brand-specific customization that’s often required for premium or highly tailored campaigns. For instance, large-scale brand awareness campaigns or initiatives that require more unique storytelling might still benefit from custom-produced creative​.

Microsoft Ads: Copilot and AI Image Tools

Microsoft has significantly expanded its AI-driven creative capabilities with Copilot in Display Ads, which now enables advertisers to quickly generate headlines, descriptions, and visuals with AI assistance. The integration of AI into the display ad creation process means that advertisers can automate the production of creative assets, tailoring them to performance data in real-time.

The Copilot AI system uses machine learning to analyze what kinds of ads are working best for specific audiences and suggests optimized creative variations accordingly. This allows for faster testing and iteration, especially useful for advertisers running multi-channel campaigns across search, shopping, and display.

Additionally, Microsoft’s AI can now generate personalized ads based on campaign goals, further reducing the need for manual creative production. The ability to quickly produce and optimize creatives across different channels makes this tool particularly valuable for performance-driven campaigns, where time-to-market and agility are key. However, similar to Google's AI tools, custom assets may still be preferable for brands that need to retain a high level of creative control or want to push the boundaries of their storytelling​

When to Use Platform-Generated Creative vs. Producing Your Own

The decision to use AI-generated assets or develop custom creatives ultimately depends on the specific goals of your campaign. Platform-generated creative is ideal for large-scale, performance-driven campaigns where speed and efficiency are critical, such as retail or ecommerce ads with multiple product variations. The ability to quickly generate and test different visuals can lead to improved performance with less creative bottleneck. Below are some other times when AI-generated imagery would be useful.

Budget and Resources: AI-generated creative is perfect for businesses with limited creative budgets or time constraints. It allows for faster iteration and deployment, especially for smaller campaigns or ongoing A/B tests.

Brand Control: If your brand requires specific messaging, aesthetic standards, or highly polished visuals, custom assets may provide more control over the final product. For high-stakes campaigns, consider a hybrid approach—use AI for testing, then refine and replace with custom creative for final deployment.

Testing New Markets or Audiences: AI-generated assets excel when you’re experimenting with new markets or audiences, providing insights without heavy upfront production costs.

Making Quick Edits to Existing Assets: Gen AI is incredibly useful for quick edits such as cropping an image or video, swapping in a new background, or removing an object. These tools can be used as a compliment to existing creative teams to take away the mundane work that often ties them up.

Custom creative is often still necessary for campaigns that focus on brand storytelling, unique product positioning, or high-quality visuals that align with a specific aesthetic. Custom assets allow brands to maintain a consistent and tailored message across all touchpoints, which can be vital for brand awareness or premium product launches.

How to Use AI Creative Tools in Google and Microsoft Ads

Here’s a quick how-to for using these AI tools in both platforms:

Google Ads:

You can find generative AI image tools in Google Ads:

  • When setting up a campaign
  • In recommendations, such as an image asset or Ad Strength recommendation
  • When editing an ad or asset group. To do this:
    • In your Google Ads account, on the page menu, click Tools icon Tools Icon.
    • Under "Shared library", select "Asset library".
    • Click + New, then click or hover over Image.
    • Click Generate and edit with AI.
    • Select the image you would like to edit

Note: Generative image tools are available for a variety of campaign types, including Search, Performance Max, Demand Gen, App, and Display campaigns.

Microsoft Ads:

  • Within a Display Ads campaign, activate the Copilot feature.
  • Review the AI-generated suggestions for headlines, descriptions, and visuals. Copilot will suggest creatives based on performance insights.
  • Use real-time performance data to further refine these assets, allowing for ongoing optimization.

Both platforms also provide support documentation and guides to help advertisers get the most out of these AI-driven tools. By regularly testing and iterating on AI-generated assets, brands can ensure their creatives remain competitive.

AI-generated image and video tools in both Google and Microsoft Ads offer powerful solutions for advertisers looking to scale creative production quickly and efficiently. Google’s Product Studio and Microsoft’s Copilot empower brands to generate performance-driven creatives while reducing the manual effort typically required. However, for campaigns that prioritize bespoke storytelling or brand consistency, investing in custom assets may still be the best approach.

Advertisers should consider their overall campaign objectives, balancing the need for speed and scalability with the importance of maintaining a unique and consistent brand voice. By strategically integrating AI-generated assets, brands can leverage the strengths of both AI tools and custom creative to achieve optimal results.

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