Business Strategy2024-03-26

The ROI of AI Advertising: A Cost Benefit Analysis

A
AdOperative Team9 min read

The Math Behind the Hype

Every CFO asks the same question: "Will this actually save us money?" The answer is a resounding yes, but not where you think.

Cost Center 1: Creative Production

Traditional Agency Model:

  • Retainer: $5,000/mo
  • Turnaround: 5-7 days
  • Output: 3-5 variations

AI Model (AdOperative):

  • Subscription: $299/mo
  • Turnaround: 30 seconds
  • Output: Unlimited variations

Savings: 94% reduction in hard costs.

Cost Center 2: Media Waste

The hidden cost of advertising is spending money on losing ads. If you spend $1,000 testing a bad ad, that money is gone.

AI predictive analytics can identify "loser" ads before launch with 80% accuracy. If you avoid launching 5 bad ads a month @ $500 test budget each, you save $2,500/mo in pure media waste.

The Speed Multiplier

The biggest ROI factor is speed. In a trend-driven market (like TikTok), being 2 weeks late means 0 conversions. AI allows you to launch today.

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