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Marketers Running AI Video Ads - Cost & Performance Experiences

Looked into the actual costs of AI video ads vs traditional production. Here's what I found. I've been looking into how AI video ad production actually compares to traditional production in terms of costs and performance. Thought I'd share some of what I found. On the cost side, AI video tools run about $0.50 to $30 per finished minute depending on the platform. Traditional agency work is more like $15,000 to $50,000+ per minute. Pretty massive gap. Probably the most interesting example is Kalshi's NBA Finals ad. One creator made a 30-second TV spot in 2 days with Google Veo 3 for around $2,000. Normally something like that would cost hundreds of thousands and take weeks or months to produce. Performance-wise, companies using AI in their campaigns are seeing around 20 to 30% better ROI. Meta's AI-enabled campaigns are averaging $4.52 return per dollar spent. A big part of it is just being able to test way more variations cheaply so you find what works faster. That said, it's not all upside. NielsenIQ ran a neuroscience study and found that consumers rated AI-generated ads as more annoying, boring, and confusing compared to traditional ones. Even the higher quality AI ads showed weaker memory activation in brain scans. Basically AI creative only outperforms when people can't tell it's AI-made. So the takeaway for me is that it's not really an either/or thing. AI makes sense for testing, iteration, localization, and high-volume performance stuff. Traditional still wins when you need real emotional impact or brand storytelling. I put together a longer writeup with all the sources on my blog if anyone's interested. Would love to hear from anyone who's actually running AI video ads. What's been your experience?

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