TLDR: The media buying landscape is witnessing a fierce competition as generative AI creative content emerges as a key differentiator between traditional television broadcasters and digital platforms. Both sides are leveraging AI to drastically reduce the cost and complexity of ad production, primarily targeting small and medium-sized businesses (SMBs) to capture a larger share of their advertising budgets. While offering new opportunities for agencies, some experts predict long-term challenges for the industry.
A significant shift is underway in the media buying sector, with generative AI creative content becoming the focal point of a new competitive struggle between established television broadcasters and dominant digital platforms. This burgeoning battle is driven by a shared objective: to democratize ad creation and lower its associated costs, thereby attracting a vast pool of small and medium-sized businesses (SMBs) previously deterred by high production expenses.
Traditional TV players, including Comcast, ITV, and Channel 4, are actively rolling out AI-powered solutions. Comcast’s Universal Ads, for instance, recently introduced a generative AI creative tool, developed with tech firm Creatify. This offering allows U.S. small businesses to generate creative assets for linear and streaming TV at no cost, utilizing existing photography and product information. James Borrow, VP of product and engineering for Universal Ads, emphasized their goal to ‘remove any of the friction’ associated with TV advertising. Similarly, British broadcaster ITV has been a pioneer in this space, launching its own gen-AI enabled creative tool last September to ‘democratize creative production’ and make TV advertising accessible to all brands, as stated by Jason Spencer, ITV business development director.
On the digital front, giants like Amazon and Google are not far behind. Amazon has integrated generative AI capabilities into its existing Creative Studio, while Google has launched its AI Asset Studio. These platforms aim to streamline the creative process, making it easier and quicker for advertisers to produce assets and integrate them directly into their ad buying workflows. eMarketer analyst Jeremy Goldman suggests that SMBs, unburdened by extensive approval processes, may be more inclined to rapidly adopt these new AI technologies.
This trend is supported by data: an October 2024 survey by the National Research Group revealed that 41% of SMBs would be more likely to advertise on a new platform if they had access to improved creative tools. The ease of use is a major draw, with Comcast’s Borrow noting their platform is ‘the closest approximation of buying social ads we could possibly create.’
While these initiatives primarily target businesses that typically operate without creative agencies, some agency executives see potential benefits. These tools can be used to efficiently produce cut-down versions of existing ads, reducing production budgets and enabling a wider array of formats and channels. Ryan Lamella, VP of channel activation at Butler/Till, whose clients are two-thirds SMBs, expressed excitement about the prospect of generating creative in-house. Agencies could also leverage these tools on behalf of their SMB clients, potentially encouraging higher ad spending.
Amazon’s strategy extends beyond merely competing with TV. Its AI Creative Studio is also designed to attract medium-sized advertisers to its Demand-Side Platform (DSP), offering incentives and encouraging greater investment in video and Connected TV (CTV) units. Destaney Wishon, CEO of BTR Media, highlighted Amazon’s ‘aggressive incentivization push’ and its role in ‘democratizing TV,’ noting how clients’ $15,000 investments are rapidly escalating into much larger streaming TV commitments. Nick Amos, an advertising specialist at BTR, views this as a ‘massive opportunity.’
However, the long-term implications for media agencies remain a subject of debate. eMarketer’s Goldman cautions that the increasing automation of marketing operations, particularly by platforms like Amazon, ‘is going to hurt agencies in the long run.’
Recent industry reports shed further light on the evolving media landscape. Kantar’s Media Reactions 2025 report indicates a global decline in marketers’ trust in X (formerly Twitter), with 29% planning to reduce spending. Conversely, in the U.S., X ranked among the top 5 media brands for consumer ad equity. Globally, consumers prefer ads on Amazon, Snapchat, TikTok, Twitch, and Prime Video, while marketers favor YouTube, Instagram, Google, Netflix, and Spotify. Despite increased consumer receptiveness to ads (up to 58% from 47% in 2024), less than one-third of marketers are confident in their ability to produce channel-tailored advertising.
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In economic forecasts, the IAB revised its 2025 U.S. ad spend outlook downward by 1.6 percentage points to +5.7%, citing advertiser concerns over rising tariffs. In contrast, WARC’s global ad spend outlook was more optimistic, projecting a 1.2 percentage point increase to +7.4%, totaling $1.17 trillion. Juozas Kaziukėnas, an independent analyst, warned that the traffic currently driven by platforms like ChatGPT to retailers ‘will not be free in the future.’
