Today, as generative AI sweeps through the marketing industry, brands are facing a trade-off between "transparency" and "conversion rate." According to a new field study conducted by New York University and Emory University, the application of AI in visual marketing shows a stark dual effect: it can be a powerful tool for increasing click-through rates, but it can also become a "poison" that ruins ad effectiveness.

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Image source note: The image is AI-generated. Image provider: Midjourney

Researchers conducted large-scale tests through Google Display Network (GDN). The results showed that ads completely generated from scratch by AI (AI-created) had a 19% higher click-through rate compared to traditionally designed ads, due to their greater "creative freedom" in color, composition, and emotional expression. In contrast, if AI was only used to slightly modify existing human-made materials (AI-modified), such as changing backgrounds or editing faces, the results were often mediocre and even worse than purely human solutions.

However, the most striking finding in the study was the impact of "transparency labels." As regulatory bodies around the world (such as the EU AI Act) require clear labeling of AI content, researchers tested the consequences of disclosing AI identity. The experimental data is alarming: once an ad is labeled as "AI-generated" or "AI-made," its click-through rate drops sharply by about 31.5%.

This phenomenon reveals consumers' contradictory psychology. Although AI-generated visuals are more striking, once users realize the content is not created by humans, their perception of the brand's "authenticity" decreases, thus weakening their purchase intent. This study provides clear strategic guidance for companies: the true value of AI lies in early creative bursts and full campaign generation, rather than minor post-production adjustments; at the same time, how to find a balance between compliance disclosure and maintaining appeal will be the greatest challenge for marketers in the future.

Key points:

  • 🚀 AI Original Content is Stronger: Compared to simple post-production adjustments, AI-generated original ads have a higher click-through rate by up to 19% due to their stronger visual appeal.

  • 📉 Labels Become a "Traffic Killer": No matter how high the image quality, once labeled as "AI-generated," the click-through rate significantly drops by about 31.5%.

  • 📦 Collaborative Effect is Significant: The study found that when AI-generated ads are paired with product packaging designed by AI, consumer click and purchase intent reach their peak.