The Evolution of Advertising Video Production: From TVCs to AI-Driven Content Creation

Introduction

The landscape of advertising video production has undergone a seismic shift over the past few decades. What was once a world dominated by big-budget television commercials (TVCs) has evolved into a diverse ecosystem of content formats, platforms, and production techniques. This transformation has been driven by technological advancements, shifting consumer behaviours, and the proliferation of digital channels. As we stand on the cusp of an AI-driven future, it’s crucial to understand the journey of advertising video production and the forces shaping its future.

The Traditional Era: TV Commercials Reign Supreme

In the golden age of television advertising, the 30-second TV commercial reigned supreme. These high-budget, meticulously crafted spots were the pinnacle of advertising creativity and production value. Shoots often spanned multiple days, involving large crews, expensive equipment, and elaborate sets or locations. The emphasis was on technical excellence and cinematic quality, with top directors and cinematographers often crossing over from the film industry to lend their expertise.

The production process was linear and time-consuming. Pre-production involved extensive planning, storyboarding, and casting. The shoot itself was a major undertaking, often with multiple takes to achieve perfection. Post-production was equally intensive, with offline and online editing, colour grading, and sound design contributing to the polished final product.

This era was characterised by:

• High production values and budgets
• Craftsmanship and technical excellence
• Limited distribution channels (primarily broadcast TV)
• Long lead times from concept to air

During this time, brands could expect to spend millions on a single TV commercial. The cost of producing and airing a Super Bowl ad, for instance, has risen exponentially, with 2022 figures indicating that a 30-second spot costs over $7 million. While this method was effective in reaching vast audiences, it lacked the agility that modern brands require.

The Digital Revolution: Channel Proliferation

The advent of digital platforms and social media catalysed a fundamental shift in video advertising production. Suddenly, brands needed to create content for a multitude of channels, each with its own format requirements, audience expectations, and consumption patterns. This new reality demanded a more agile, diverse approach to video production.

Key changes included:

• Shorter formats (15, 10, even 6-second ads)
• Vertical video for mobile consumption
• Platform-specific content (e.g., Instagram Stories, TikTok challenges)
• Increased demand for real-time and reactive content

Brands adopted a "shoot once, use many" strategy, capturing various assets during a single production to feed multiple channels. As of 2023, global digital video advertising spend reached $96.2 billion, with platforms like TikTok and Instagram becoming central to modern campaigns. The rise of short-form video content, particularly on TikTok, where 10–15-second clips generate more engagement than traditional formats, is indicative of this digital shift.

Key Disruptors in Advertising Video Production

Democratisation of Technology

The accessibility of high-quality, affordable video equipment revolutionised production capabilities. DSLR cameras capable of shooting broadcast-quality video became widely available, allowing smaller production houses and individual creators to compete with larger studios. Smartphone videography further democratised content creation, enabling brands to produce authentic, low-budget content in-house.

By 2023, over 7.33 billion people globally owned smartphones, pushing brands to tailor their content to mobile-first experiences. For instance, 30% of consumers watch video ads on their phones while browsing, underlining the growing importance of optimising content for mobile consumption.

Social Media and User-Generated Content

Social platforms such as Instagram, TikTok, and YouTube transformed audience expectations around video content. The polished, high-production look of traditional TVCs gave way to more authentic, raw, and relatable content. User-generated content (UGC) and influencer partnerships became powerful tools for brands. A global study by Stackla found that 79% of people say UGC highly impacts their purchasing decisions.

This shift in content consumption has prompted brands to lean into UGC campaigns, such as Coca-Cola’s Share a Coke, where consumers generated content that became central to the brand's strategy.

Streaming Platforms and Branded Content

The rise of streaming services like Netflix, Hulu, and Disney+ opened new avenues for long-form branded content and creative storytelling. Brands began producing everything from short documentaries to full-length features, blurring the lines between advertising and entertainment. In 2022, branded content generated 75% more engagement than traditional ads, showcasing how storytelling in video has expanded.

Virtual Production and CGI

Advancements in computer-generated imagery (CGI) and virtual production techniques have revolutionised video advertising. Sophisticated LED wall setups, as seen in productions like The Mandalorian, allow for real-time background rendering and immersive filming experiences. This technology enables brands to create elaborate settings and scenarios without the need for expensive location shoots or set construction.

Current Disruptors Shaping the Industry

AI and Machine Learning in Production

AI is becoming a major player in video production, streamlining processes and opening up new creative possibilities.

• AI-Assisted Scriptwriting: AI platforms, such as Jasper, generate ideas and draft scripts based on emotional and demographic insights.
• Automated Editing: AI editing software like Adobe Sensei can analyse scenes and create rough cuts based on pacing and emotional cues, reducing post-production times.
• AI Lip-Dubbing and Audio: Tools such as Synthesia enable brands to seamlessly create multi-language content by using AI-driven lip-syncing. AI audio tools like Descript allow brands to alter voiceovers or create voice clones, minimising the need for re-recording. This is invaluable for global campaigns, where content must be localised quickly. Netflix, for example, has adopted AI lip-dubbing technologies for localisation, allowing viewers in different regions to experience films in their native languages with enhanced accuracy.

Personalisation and Dynamic Content

Dynamic Creative Optimisation (DCO) allows for the creation of thousands of video ad variations tailored to individual viewers based on location, behaviour, and demographics. Research shows that personalised videos can increase viewer retention rates by up to 35%, and hyper-targeted ads drive a 50% higher ROI than traditional formats. AI algorithms play a significant role in analysing viewer data and delivering ads in real time, tailored to each user’s preferences.

Virtual and Augmented Reality

Immersive technologies are pushing the boundaries of video advertising:

• AR filters on platforms like Instagram and Snapchat allow for interactive brand experiences.
• VR Advertising creates fully immersive brand worlds, placing users directly into branded environments.

By 2023, the global AR and VR market had reached $31.12 billion, with advertising playing a growing role in this sector. AR ads, such as those used by IKEA to let users visualise furniture in their homes, have shown a 40% increase in engagement compared to traditional formats.

Sustainability in Production

As environmental concerns grow, brands are increasingly embracing more sustainable production practices:

• Virtual Production techniques reduce the need for travel and physical set construction.
• Remote Collaboration tools minimise the carbon footprint by allowing global teams to work together virtually.

Sustainability has become a driving force for change, with 81% of consumers globally feeling strongly that companies should help improve the environment. As a result, brands are showcasing behind-the-scenes sustainable efforts, aligning themselves with the values of increasingly eco-conscious consumers.

The Future of Advertising Video Production

AI-Generated Content

As AI capabilities advance, we are likely to see:

• Fully AI-created video ads, from concept to execution.
• Human-AI collaboration, with AI handling the technical aspects while humans focus on creative direction.
• Real-time generation of personalised video content. AI-driven video creation platforms like Pictory allow brands to generate personalised content at scale, using audience data to adapt the format, tone, and length in real-time.

Hyper-Personalisation at Scale

The future of video advertising lies in hyper-personalisation at scale. AI-driven systems will create thousands of ad variations in real-time, adapting based on user behaviour, reactions, and preferences. Interactive ads will evolve, with viewers able to shape their own experiences by choosing different pathways or options within ads, creating deeper engagement.

Integration of Gaming Engines in Production

Game engines such as Unreal Engine are now being used in video production. This technology allows for real-time rendering, instant iterations, and seamless blending of live-action with CGI elements. These developments have already seen applications in both advertising and entertainment, with brands like Mercedes-Benz using Unreal Engine to create stunning, interactive visual experiences in their campaigns.

Ethical Considerations and Transparency

As AI takes on a larger role in content creation, ethical concerns are coming to the forefront:

• Transparency: Brands will need to clearly disclose AI-generated content to maintain consumer trust.
• Diversity and Inclusion: AI-generated content must avoid bias and represent diverse voices.
• Privacy: As personalisation becomes more sophisticated, balancing personalisation with privacy will be essential, especially given tightening global data regulations such as GDPR and CCPA.

Embracing the Future: The Imperative for Transformation

As the landscape of advertising video production continues to evolve at a rapid pace, brands and agencies face a critical imperative: transform or risk obsolescence. The future opportunities presented by AI, personalisation, and immersive technologies are immense, but harnessing them requires a fundamental shift in mindset, processes, and capabilities.

Why Transformation is Crucial:

• Competitive Advantage: Brands that embrace next-gen content production can outpace competitors by delivering more relevant, engaging, and dynamic experiences to their audiences.
• Cost Efficiency: Automation and AI-driven workflows can reduce production costs by as much as 30%, while accelerating turnaround times.
• Scale: The ability to personalise content at scale will become a key differentiator, with brands needing to deliver not just one message, but thousands—each uniquely tailored to its recipient.

Arloesi’s Role in Driving Transformation

At Arloesi, we recognise the imperative for transformation in advertising video production. Our cutting-edge next-gen content solutions enable brands to not only navigate but thrive in this new era. By integrating AI, automation, and creative expertise, we empower brands to streamline production processes while maintaining the integrity of creative vision.

Our solutions ensure:

• AI-Driven Efficiency: From AI-assisted scriptwriting to automated editing and dynamic creative optimisation, Arloesi’s solutions streamline production processes, enabling faster turnarounds and greater cost efficiencies.
• Scalability at Speed: Our modular production frameworks allow brands to create personalised content at scale, delivering hyper-targeted messaging across multiple platforms in real-time.
• Sustainability by Design: With a commitment to reducing environmental impact, we incorporate virtual production techniques and sustainable practices into our workflows.
• Ethical AI Integration: Arloesi emphasises transparent, ethical use of AI in content creation, ensuring that diversity, inclusivity, and fairness are at the forefront of every project.

By partnering with Arloesi, brands can achieve the delicate balance between technological innovation and creative storytelling, securing their place in the future of advertising video production.

"With AI, we’re entering a new era of video production where machines handle the repetitive tasks, freeing up human creators to focus on what they do best—innovating and telling stories. AI tools help personalise video content at scale, but the core of great storytelling remains human." Chris Duffey, Head of AI Innovation and Strategy at Adobe

Conclusion

The journey of advertising video production, from the era of big-budget TVCs to today's AI-driven, multi-platform landscape, has been one of constant innovation and adaptation. While the tools and techniques have evolved dramatically, the core goal remains the same: to create compelling visual stories that resonate with audiences and drive brand success.

As we look to the future, the role of human creativity in advertising production is evolving. AI, automation, and dynamic content personalisation offer unprecedented opportunities to streamline processes and reach audiences in ways we could never have imagined. But it is only through the harmonious integration of these technologies with human ingenuity that the true potential of advertising video production can be realised. The future is not about choosing between technology and creativity, but rather about using technology to unlock the full power of creative storytelling.