Redefining Digital Storytelling: GenAI's Transformative Role in Advertising
The following is a guest blog written by Snapchat.
In a world saturated with digital content, capturing and holding consumer attention has become the ultimate challenge for brands. Innovative technologies like Generative AI and augmented reality (AR) are providing the necessary tools for marketers to forge deeper connections with their audiences.
While GenAI's integration into our daily lives is well underway, with the majority of users having used it1, its application in marketing is poised for a major expansion. A recent study, conducted in partnership with PMG, Snap, and eye square, explores the impact of GenAI on consumer engagement and brand outcomes. The findings showcase a powerful synergy between human creativity and AI-driven technology, offering a new blueprint for effective and efficient digital advertising.
The Power of Immersive Formats for All
The study, which focused on the power of GenAI to turn a simple static asset into video as well as powering AR Lenses, surveyed over 14,800 consumers across seven global markets and found that the combination of GenAI-powered video and AR Lenses creates a compelling formula for brand storytelling.
These immersive formats consistently outperformed static ads across all key metrics, from attention to engagement. They don't just grab attention; they sustain it. The GenAI video ads and AR Lenses showed significantly higher rates of users watching for at least two seconds compared to their static counterparts.
This heightened engagement translates directly to positive brand perceptions. Participants who were exposed to GenAI assets reported a significant uplift in brand image statements, viewing brands as more premium and innovative. Additionally, they drove improvements across the entire brand funnel, from brand awareness and consideration to purchase intent and advocacy.
The Role of Transparency in Building Trust
As GenAI becomes more integrated into advertising, the issue of transparency is top-of-mind for many. Both consumers and marketers agree that disclosing the use of AI is essential for building and maintaining trust. The research found that consumers are significantly more likely to accept AI-generated ads when they are transparently labeled.
This is not just a matter of compliance but a strategic opportunity for brands to position themselves as leaders in innovation while being accountable.
GenAI as an Amplifier, Not a Replacement for Human Creativity
The effectiveness of GenAI does not diminish the role of human creativity. Instead, it creates opportunities to elevate it. Marketers overwhelmingly view GenAI as a tool to enhance human ingenuity, not replace it. While 87% of marketers found GenAI tools to be effective, there is a strong desire for human control and oversight. This stems from concerns about misinformation, a lack of accountability, and the potential for a loss of the unique nuance that only human creativity can provide.
As Carly Carson, Head of Integrated Media at PMG, aptly states, "Transparency is not just a principle, it is a responsibility. Our commitment to transparency is reflected in Alli, our proprietary marketing operating system, and stems from our belief that trust is earned when people understand how and why technology is used. We are focused on using AI to enhance human connection, not replace it, and that begins with making its role visible, understandable, and accountable."
GenAI is a powerful collaborator that can automate and accelerate certain tasks, such as generating assets for brainstorming or rapid iteration. However, the final creative vision and the strategic application of these tools remain firmly in human hands.
Strategic Best Practices for GenAI in Advertising
Ultimately, the study provided clear guidance on how to effectively integrate GenAI into marketing strategies:
- Embrace GenAI for Visual Storytelling, but With a Caveat: Consumers are comfortable with brands using AI to generate various ad elements like images, video, and music. However, there are nuances to consider. While consumers are more accepting of AI-generated products, objects, and environments, the use of AI to depict humans is met with more skepticism. Animation-style ads are also more readily accepted than photorealistic ones. Therefore, marketers should exercise caution when using GenAI for humanistic elements and lean into animation or abstract visuals where consumer comfort is higher.
- Prioritize Immersive, Personalized Experiences: Beyond creative development, consumers are highly interested in AI-powered experiences that add value to their journey. This includes AI-generated product recommendations, chatbots, and virtual try-on experiences.1 Brands should recognize this demand and experiment with GenAI not just for asset creation, but for enhancing the entire customer experience.
- Use Positive Disclosure to Build Trust: Transparency is not a concession; it's a competitive advantage. By proactively disclosing the use of GenAI, brands can build trust and position themselves as innovative leaders who are ethically using technology to create compelling content. This strategic approach helps to mitigate any potential negative reactions and reinforces a brand's commitment to accountability.
The study’s findings provide a roadmap for the future of digital advertising. GenAI represents a fundamental shift in how we create, connect, and communicate. By strategically leveraging its capabilities in concert with human creativity, and by prioritizing transparency, brands can build stronger, more authentic relationships with consumers in a rapidly evolving digital world.
See It at ADVANCE
The future of GenAI in advertising isn’t just a headline. It’s happening live at ADVANCE 2025.
Snap CEO Evan Spiegel will join Smartly CEO Laura Desmond on the main stage to explore how empathy, transparency, and innovation can help brands build deeper, more authentic relationships with consumers. Later, Snap’s Fintan Gillespie will share the stage with The New York Times to show how uniting creative and media on Snapchat drives sustainable performance at scale.
Together, these sessions underscore what this study reveals: GenAI is most powerful when paired with human creativity and clear strategy. If you’re ready to see how the next chapter of advertising is being written, ADVANCE is where it’s unfolding.
---
Methodology Details
The research employed a mixed-methods approach, including a quantitative survey of over 14,800 consumers (ages 13-44) across Australia, Canada, France, Germany, Saudi Arabia, the UK, and the US. This was complemented by expert interviews with 15 US marketing managers and a separate quantitative survey of over 150 US marketing professionals. The consumer survey utilized a randomized test design, exposing participants to different ad formats: human-generated static ads, GenAI-assisted video ads, and a combination of GenAI video and AR Lens ads.
Sources
- Source: GenAI Impact on Brands research by eye square, commissioned by Snap Inc and PMG, 2025
Redefining Digital Storytelling: GenAI's Transformative Role in Advertising
.png)
The following is a guest blog written by Snapchat.
In a world saturated with digital content, capturing and holding consumer attention has become the ultimate challenge for brands. Innovative technologies like Generative AI and augmented reality (AR) are providing the necessary tools for marketers to forge deeper connections with their audiences.
While GenAI's integration into our daily lives is well underway, with the majority of users having used it1, its application in marketing is poised for a major expansion. A recent study, conducted in partnership with PMG, Snap, and eye square, explores the impact of GenAI on consumer engagement and brand outcomes. The findings showcase a powerful synergy between human creativity and AI-driven technology, offering a new blueprint for effective and efficient digital advertising.
The Power of Immersive Formats for All
The study, which focused on the power of GenAI to turn a simple static asset into video as well as powering AR Lenses, surveyed over 14,800 consumers across seven global markets and found that the combination of GenAI-powered video and AR Lenses creates a compelling formula for brand storytelling.
These immersive formats consistently outperformed static ads across all key metrics, from attention to engagement. They don't just grab attention; they sustain it. The GenAI video ads and AR Lenses showed significantly higher rates of users watching for at least two seconds compared to their static counterparts.
This heightened engagement translates directly to positive brand perceptions. Participants who were exposed to GenAI assets reported a significant uplift in brand image statements, viewing brands as more premium and innovative. Additionally, they drove improvements across the entire brand funnel, from brand awareness and consideration to purchase intent and advocacy.
The Role of Transparency in Building Trust
As GenAI becomes more integrated into advertising, the issue of transparency is top-of-mind for many. Both consumers and marketers agree that disclosing the use of AI is essential for building and maintaining trust. The research found that consumers are significantly more likely to accept AI-generated ads when they are transparently labeled.
This is not just a matter of compliance but a strategic opportunity for brands to position themselves as leaders in innovation while being accountable.
GenAI as an Amplifier, Not a Replacement for Human Creativity
The effectiveness of GenAI does not diminish the role of human creativity. Instead, it creates opportunities to elevate it. Marketers overwhelmingly view GenAI as a tool to enhance human ingenuity, not replace it. While 87% of marketers found GenAI tools to be effective, there is a strong desire for human control and oversight. This stems from concerns about misinformation, a lack of accountability, and the potential for a loss of the unique nuance that only human creativity can provide.
As Carly Carson, Head of Integrated Media at PMG, aptly states, "Transparency is not just a principle, it is a responsibility. Our commitment to transparency is reflected in Alli, our proprietary marketing operating system, and stems from our belief that trust is earned when people understand how and why technology is used. We are focused on using AI to enhance human connection, not replace it, and that begins with making its role visible, understandable, and accountable."
GenAI is a powerful collaborator that can automate and accelerate certain tasks, such as generating assets for brainstorming or rapid iteration. However, the final creative vision and the strategic application of these tools remain firmly in human hands.
Strategic Best Practices for GenAI in Advertising
Ultimately, the study provided clear guidance on how to effectively integrate GenAI into marketing strategies:
- Embrace GenAI for Visual Storytelling, but With a Caveat: Consumers are comfortable with brands using AI to generate various ad elements like images, video, and music. However, there are nuances to consider. While consumers are more accepting of AI-generated products, objects, and environments, the use of AI to depict humans is met with more skepticism. Animation-style ads are also more readily accepted than photorealistic ones. Therefore, marketers should exercise caution when using GenAI for humanistic elements and lean into animation or abstract visuals where consumer comfort is higher.
- Prioritize Immersive, Personalized Experiences: Beyond creative development, consumers are highly interested in AI-powered experiences that add value to their journey. This includes AI-generated product recommendations, chatbots, and virtual try-on experiences.1 Brands should recognize this demand and experiment with GenAI not just for asset creation, but for enhancing the entire customer experience.
- Use Positive Disclosure to Build Trust: Transparency is not a concession; it's a competitive advantage. By proactively disclosing the use of GenAI, brands can build trust and position themselves as innovative leaders who are ethically using technology to create compelling content. This strategic approach helps to mitigate any potential negative reactions and reinforces a brand's commitment to accountability.
The study’s findings provide a roadmap for the future of digital advertising. GenAI represents a fundamental shift in how we create, connect, and communicate. By strategically leveraging its capabilities in concert with human creativity, and by prioritizing transparency, brands can build stronger, more authentic relationships with consumers in a rapidly evolving digital world.
See It at ADVANCE
The future of GenAI in advertising isn’t just a headline. It’s happening live at ADVANCE 2025.
Snap CEO Evan Spiegel will join Smartly CEO Laura Desmond on the main stage to explore how empathy, transparency, and innovation can help brands build deeper, more authentic relationships with consumers. Later, Snap’s Fintan Gillespie will share the stage with The New York Times to show how uniting creative and media on Snapchat drives sustainable performance at scale.
Together, these sessions underscore what this study reveals: GenAI is most powerful when paired with human creativity and clear strategy. If you’re ready to see how the next chapter of advertising is being written, ADVANCE is where it’s unfolding.
---
Methodology Details
The research employed a mixed-methods approach, including a quantitative survey of over 14,800 consumers (ages 13-44) across Australia, Canada, France, Germany, Saudi Arabia, the UK, and the US. This was complemented by expert interviews with 15 US marketing managers and a separate quantitative survey of over 150 US marketing professionals. The consumer survey utilized a randomized test design, exposing participants to different ad formats: human-generated static ads, GenAI-assisted video ads, and a combination of GenAI video and AR Lens ads.
Sources
- Source: GenAI Impact on Brands research by eye square, commissioned by Snap Inc and PMG, 2025
Honestly, we'd rather just show you.
Chat with our team to see how Smartly transforms the fragmented advertising ecosystem into something suspiciously manageable.
%201%20(1)%201%201.avif)
