AI Reshaping Advertising: Instreamatic’s 2025 Report Highlights Industry Trends

The advertising sector is undergoing a transformation driven by artificial intelligence, according to the newly released 2025 Survey Report: AI in Creative Production from Instreamatic. The report, developed in collaboration with the Alliance of Independent Agencies and King Street Ventures, examines how AI is reshaping creative production and advertising strategies. Drawing insights from top agencies and brands, it sheds light on AI’s growing influence on efficiency, personalization, and creative collaboration.

Challenges in Traditional Creative Production

The report highlights longstanding inefficiencies in traditional ad production methods, which are increasingly ill-suited to meet the demands of today’s digital environment. A reliance on manual processes has slowed campaign iteration and limited personalization, creating obstacles for brands trying to connect with diverse and evolving audiences. According to the survey, 38% of respondents cited difficulty in ad iteration, 28% pointed to a lack of personalization, and 21% expressed frustration with the time-intensive nature of traditional methods.

How AI is Addressing Industry Pain Points

AI is emerging as a critical tool for overcoming these challenges. Instreamatic’s findings suggest that brands are leveraging AI to expedite production timelines, scale personalization, and optimize campaigns in real-time.

  • Faster Campaign Timelines: The automation of tasks like image recognition and video editing enables brands to produce ad variations quickly, significantly reducing the time and cost associated with traditional workflows. Over 40% of respondents identified content creation as the area where AI has been most effective.
  • Personalization at Scale: With AI, brands can craft tailored ad experiences that align with individual consumer preferences, locations, and behaviors. Seventy percent of respondents confirmed that AI has enhanced their ability to scale personalized campaigns.
  • Real-Time Adaptation: AI’s data analytics capabilities allow brands to track performance metrics and make on-the-fly adjustments to campaigns, improving engagement and optimizing budgets dynamically.

The Impact on Creativity

Rather than diminishing human creativity, AI is being positioned as a complementary force. According to the report, 82% of respondents believe AI-generated content is now nearly indistinguishable from human-made work. AI automates routine tasks, freeing creative teams to focus on high-level strategy and innovation.

“AI amplifies creativity by streamlining processes and offering new tools for ideation,” said Kevin van der Straat of Havas Denmark.

Broader Implications for Marketers

The findings align with broader trends in the advertising industry, where the shift toward data-driven personalization is accelerating. As platforms like Instagram and TikTok demand faster, more engaging content, AI offers solutions to maintain relevance in highly competitive digital spaces.

The report also explores how brands like Pedigree and Toyota are utilizing AI to achieve significant results. Pedigree’s “Adoptable Dog Ads” campaign, which used AI to pair consumers with adoptable dogs based on their interests, showcased AI’s potential for blending social impact with marketing objectives. Similarly, Toyota’s partnership with Mirriad demonstrated the power of AI-driven contextual advertising to boost recall and engagement.

Challenges and Cautions

Despite its advantages, the adoption of AI is not without challenges. Issues such as data privacy concerns, unpredictable outcomes, and integration costs remain barriers for some. Additionally, there is a need for updated workflows to manage the rapid iteration and approval processes AI enables.

As advertising professionals continue to explore AI’s capabilities, the technology is positioned to redefine the boundaries of efficiency and creativity. Marketers who embrace AI as a collaborative tool rather than a replacement for human input may find themselves better equipped to navigate an increasingly personalized and fast-paced advertising environment.

The full report is available for download through Instreamatic’s website, providing an in-depth look at the findings and case studies that illustrate AI’s growing role in reshaping the future of advertising.