Telling consumers an ad is AI-generated cuts clicks by 31 percent, study finds
2025-12-22
Summary
A study by NYU and Emory University found that ads created entirely by AI had a 19% higher click-through rate compared to human-created ads, while AI-modified ads performed worse or showed no improvement. Transparency labels indicating that an ad was "AI-generated" led to a 31.5% drop in click-through rates, highlighting consumer bias against AI involvement in advertising.
Why This Matters
These findings are significant for marketing professionals exploring AI tools, as they suggest that AI can effectively generate completely new advertising content but is less successful at modifying existing works. The drop in performance due to transparency labels also poses a challenge, especially as regulations like the EU AI Act push for clearer disclosure of AI-generated content.
How You Can Use This Info
Professionals should consider using AI to create new advertising concepts from scratch rather than modifying existing ones, as it appears to be more effective. Being aware of the negative impact of transparency labels, marketers might need to develop strategies to address consumer perceptions of AI-generated content, potentially by focusing on the quality and creativity of AI-driven designs.