How AI Ads Can Boost Business Revenue Up to $100M+
Discussing AI for Ads and What Can We Learn with Some Case Studies
Hi!
The other day, I was scrolling through my Twitter feed and came across an interesting thread about creating ads using AI. One studio became so adept at using automation in advertising its products that it grew into a startup with 20+ apps and over $100M in annual revenue.
Let's break down how it managed to take over the world (even if you haven't heard of this company, you've certainly come across its ads on Shorts, TikTok, and Instagram), what its business model is, and what tools you can use to replicate its results.
In this newsletter:
- The Codeway and Its Business Model
- How This Startup Uses AI for Ads Creating
- Best AI Tools for Your Ads
The Company and Its Business Model
The first thing we need to deal with is who we're talking about.
It's a company called Codeway.
Codeway is an app development company founded in Istanbul in 2020. The startup states that its mission is to lead the mobile AI app space by creating applications that provide exceptional user experiences and leverage state-of-the-art technology. Codeway targets the broadest audience by developing chatbots and content generators for iOS and Android. Their services are monetized on a subscription basis.
From a technical perspective, the startup primarily relies on the GPT API. Specifically, the OpenAI model is used for Ask AI and Type AI. In addition, the company does in-house development in generative models and has a department responsible for deep learning methods and other technologies.
In total, it has developed and released more than 20 AI apps. The number of users who have downloaded these apps exceeds 125 million, and the paying audience consists of over 1 million subscribers. According to Data AI, such volumes have allowed the initially small company to reach $100 million in annual revenue.
You're definitely familiar with their apps.
But let's be honest: It's hard to surprise anyone with a “big numbers” AI startup right now. It's much more interesting to try to answer the question: How did one (relatively) small company become a global brand and monetize its products worldwide?
The answer, of course, is in the use of AI.
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How They Use AI in the Process
So, you have more than 20 apps and are targeting a multi-lingual audience, but your team is not very big. Of course, you can hire a staff of freelance marketers and invest in influencers to review and promote your services. But that would involve a considerable expenditure. So, they use generative models to create ads on TikTok, Shorts, and other social networks.
Let's take a look at a few examples.
The first example is rather primitive. But its beauty is that all you need to do is make a screen recording, apply some animations in any video editor, and then just generate a voiceover. Codeway has more sophisticated solutions as well.
Check out this video:
The catch is that the guy commenting on the TikTok-blogger-style video was generated using AI. As well as his voice. This approach tricks our perception, makes us linger on the ads, and creates a more upbeat video experience.
Plus, unlike a regular Influencer, a digital character can be instantly translated into hundreds of different languages at no additional cost. So if you're in the B2C segment and your product is an online platform, I'd say you have no choice. You should definitely use similar approaches.
Codeway uses this strategy for all of its apps on various platforms. The company applies different hooks, use cases, and languages depending on the context. Just imagine how long it would have taken to do the same thing five or six years ago. We probably wouldn't be talking about this developer from Istanbul right now.
Let's discuss what it would take to reproduce a similar result.
By the way, if you want to learn how to quickly create content for TikTok & Shorts, check out this post:
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AI Tools for TikTok & Shorts Ads Creating
I suggest dividing our potential video into several components to understand what tools we will need. These include a cover generator, a voice generator (with support for multiple languages), and an AI video editor. Below, I list my favorites for each category and a few alternatives if you don't like my choices.
Creating a Сover for Your Ads: Leonardo AI
There is clearly no problem with choosing image-generation applications in today's world. Therefore, I only suggest the tool I prefer: Leonardo AI. It has enough features to create a unique style and adjust the image to your standards.
If Leondardo doesn't work for you, try one of these:
- Dall-E 3
- Midjourney (As of recently, it is available on the web)
- Stable Diffusion
If you need help with Stable Diffusion, read our guide:
Creating a Voice for Your Ads: ElevenLabs
ElevenLabs is one of the most popular text-to-speech platforms. It now supports 32 languages and is gradually adding new ones. With it, you can choose the preset you like the most, customize the tone of voice, and add various sound effects.
Good alternatives for ElevenLabs could be:
Editing a Video for Your Ads: CapCut
Now, the only thing left to figure out is which app you want to combine content with and edit it. I prefer to use CapCut. It's one of the most popular (for a reason) and simple tools for creating videos. CapCut also has AI features, including digital avatar generation and translation into different languages.
It also allows you to generate cover art and voice, but I prefer to use separate apps for these tasks because of the higher quality.
Alternatives to the Veed.io app:
Bonus Tools
Since we're talking about creating ads with artificial intelligence, it's important to mention a few additional tools that will help you with your campaigns.
AdCreative.ai – It designs banners for ads, using AI to analyze performance data and improve creative designs. AdCreative takes the guesswork out of which visuals will resonate most with your audience, offering suggestions backed by data.
Creatopy – This AI tool is designed to automate and scale ad campaigns. It can streamline the entire design process, especially for businesses running multi-platform ad campaigns.
QuickAds – It is focused on enabling businesses to quickly generate and launch ads across multiple platforms like Google, Facebook, and Instagram. This solution can be ideal for users who need fast ad creation with minimal effort.
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This article was first published in the Creators AI newsletter. View the original edition.
