August 28, 2024
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AI Actors- Part 2 | Overcoming Challenges, Addressing Limitations, and Embracing the Hybrid Future

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Context: We own 22 apps (subscription based + ad revenue) on the App Store and spend aggressively on TikTok, Applovin & more. We produced more than 100k videos in the last 12 months and here’s what we’ve learned:

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About the author

Nikki is the Chief of Staff at Poolday where she spent her academic and professional career in the world of biotech and diagnostics. Notably, she released the world's first glycroproteomic test, and now brings her expertise in operations and strategy to Poolday!

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The Challenges and Limitations of AI Actors


The rise of AI actors might seem like a game-changer, but beneath the surface, there are serious challenges that could derail the entire industry. As more brands turn to AI to streamline their marketing efforts, the question looms: are we sacrificing authenticity, creativity, and even ethical standards for the sake of efficiency? The reality is that AI actors come with significant limitations, and if we’re not careful, the very tools meant to propel us forward could end up holding us back.

In this article, we’ll dig into the critical issues surrounding AI actors—exploring the pitfalls marketers must avoid, the limitations that threaten to undermine their success, and how a hybrid approach could be the saving grace. The future of content creation is uncertain, but by understanding and addressing these challenges, we can navigate this new landscape and ensure that innovation doesn’t come at too high a cost.

As AI actors gain traction in the world of performance marketing, it's easy to get caught up in the excitement of innovation. But beneath the surface, there are significant challenges that every marketer must consider. From the fear of job displacement among creators to the potential for brand fatigue, the road to fully integrating AI into content creation is far from smooth. These aren’t just minor hurdles—they’re critical issues that could determine whether AI becomes an asset or a liability for your brand.

AI's Reputation: 

AI advancements are new, and the sentiment among many creatives is, “AI will take my job” or “You can make me say anything you want.” This fear is especially prevalent in the performance industry, where ads are heavily scrutinized on social platforms like TikTok. Understandably, there’s concern that by recording a digital avatar and giving up rights, anyone could manipulate their likeness to say anything. However, in reality, the performance industry operates under strict regulations and guidelines, with most companies conducting extensive quality assurance to ensure that no videos contain explicit, sexual, or derogatory content. Despite this, the stigma around AI and digital avatars is something that will need to change over time.

Payment Concerns: 

This might be a hot take, but when it comes to digital avatars, the reality is that many companies are willing to pay well for regular people to have a chance at the spotlight. While less than 0.05% of the world’s population consists of celebrities, we’re targeting the other 95.5%—those without a brand presence who would likely never consider acting otherwise. For these individuals, earning hundreds or thousands of dollars for a few hours of digital avatar work is an easy decision. However, due to the bad reputation of AI and the fear of having their “likeness” used in a video, many are hesitant to take up these opportunities. This concern is particularly strong among professionals like doctors and lawyers, who worry that their digital representation could be manipulated to say things that don’t align with their beliefs.

Authenticity and Natural Movements: 

Companies like Arcads take natural-looking videos of people and then use lip translation or a type of lip-dubbing technology. While this approach works well for quick, one-off videos, it falls short when a creative strategist uses the same elements and actor across multiple videos. Most video generation companies use 20-30 minute recordings, highlight the best 2-3 minutes, and then rely on lip-dubbing for the rest. The result is that the raw footage remains the same, regardless of the script used. This approach limits the variety and authenticity of the content, leading to repetitive videos that quickly lose their appeal.

Share of Voice Competition: 

Another challenge is the potential for AI video communication platforms to overuse the same AI avatars across multiple brands. For instance, if both Candy Crush and Clash Royale use the same AI actor, their audiences will see the same face repeatedly, leading to brand fatigue and diminishing differentiation. This overexposure can cause brands to blend together, making it harder for them to stand out in a crowded marketplace. Maintaining a unique and recognizable brand presence becomes more challenging when everyone is using the same digital actors.

Commercial Licensing: 

Companies using AI avatars for commercial purposes must be vigilant about securing the appropriate rights. It’s crucial to consult a lawyer to navigate the licensing agreements that specify how, where, and for how long you can use an avatar’s likeness. You need to determine whether you require exclusive or non-exclusive rights and ensure you have permission to modify and distribute the AI actor’s appearance for commercial use. Understanding termination and renewal terms is also essential for managing the ongoing usage of AI avatars effectively.

While the promise of AI actors is undeniable, success lies in understanding and addressing these challenges head-on. Whether it’s overcoming the stigma surrounding AI, ensuring authenticity in your content, or navigating the complexities of commercial licensing, there’s a lot at stake. The key is to approach AI with both optimism and caution, leveraging its potential while being fully aware of its limitations. Only then can marketers truly harness the power of AI without sacrificing the creativity and trust that define successful campaigns.

The Likely Future: A Hybrid Approach

Given these challenges, a hybrid approach might be the best solution for marketers. By using digital avatars to A/B test various components of an ad and then hiring a content creator to recreate the top-performing version, you can save significant time and money while maintaining the authenticity of a real actor. Here’s how it works through Poolday:

1. Choose a Variable to Test: Start by identifying a variable that has the most impact on performance, such as the hook. The first 3 seconds of your video are crucial—hook swapping alone can multiply your performance goals by up to 9x. For example, tweaking the opening sentence can significantly boost your return on ad spend (ROAS).

2. Use Poolday.ai to Create Variants: Leverage Poolday.ai to generate multiple video variants by experimenting with different hooks while keeping the script, call to action (CTA), and other elements consistent. Control for variables like the actor, style, music, and background to isolate the impact of the hook. This approach helps you focus on what truly moves the needle without introducing unnecessary complexity.

3. Generate, Analyze, Iterate: Once your videos are generated, closely monitor their performance metrics. Analyze which variant performs the best, paying attention to metrics such cost per install (CPI). After identifying the top-performing hook, iterate on other variables like actor selection or style to further optimize your ads.

4. Scale with Proven Combinations: After pinpointing the best-performing combination, bring in a real content creator to remake the ad using the proven formula. This ensures you have a high-quality, authentic ad that maximizes your investment in AI-generated testing, ready to scale across various platforms with confidence.

This hybrid approach ensures you maximize the experimental phase of creative production while preserving the genuine touch of human talent.

Our Take

AI actors are undeniably revolutionizing the way we create and distribute content, offering unprecedented speed, cost-efficiency, and consistency. However, as with any disruptive technology, they come with their own set of challenges and limitations that must be carefully navigated. Whether it’s the fear of job displacement, the risk of repetitive content, or the complexities of commercial licensing, these are issues that can’t be ignored.

Learn More: AI Actors Key Benefits

But the future doesn’t have to be about choosing between AI and human talent—it can be about combining the strengths of both. A hybrid approach, where AI is used for rapid experimentation and iteration, and human creativity is brought in to refine and perfect the final product, might be the key to staying ahead in this ever-evolving landscape.

In the end, success in this new era of performance marketing will depend on how well you can balance innovation with authenticity, efficiency with creativity. AI actors are a powerful tool, but like any tool, their value lies in how you use them. The challenge is clear: adapt, innovate, and embrace the potential of AI while keeping the human element at the heart of your content strategy. Those who master this balance will not just survive the changes ahead—they’ll lead them.

About the author

Nikki is the Chief of Staff at Poolday where she spent her academic and professional career in the world of biotech and diagnostics. Notably, she released the world's first glycroproteomic test, and now brings her expertise in operations and strategy to Poolday!

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