Home AI AdGPT Exits Stealth To Create AI-Generated Ads For SMBs

AdGPT Exits Stealth To Create AI-Generated Ads For SMBs

generative AI

It’s like ChatGPT, but for ads.

AdGPT, a startup that uses AI to automatically create hundreds of ads across Facebook, Instagram, Taboola, Outbrain, Google, LinkedIn and X, came out of stealth mode on Wednesday.

An advertiser can enter a URL into the AdGPT site, upload a brief or write a quick prompt, such as “I have a special offer this weekend for 30% off in Brooklyn,” and click to generate a variety of ad creative options.

The more the advertiser uses the tool, the more AdGPT learns the brand identity and adapts to the marketer’s tastes through “usage and feedback loops,” said Eilon Zarmon, CEO and co-founder of AdGPT. “Each interaction refines its understanding of preferred colors, tone and visual styles.”

For instance, if a company continually tweaks the AI-generated ads to get to a more formal brand voice, AdGPT will modify its language model to reflect this preference in future campaigns, he said.

AdGPT’s target clients are small to midsize businesses (SMBs). Many SMBs can’t afford to hire an agency, according to Zarmon. AdGPT aims to give SMBs a fast, affordable ad agency replacement. Clients can sign up for monthly or annual AdGPT subscriptions.

Though it currently doesn’t have clients because it hasn’t launched yet, “friends and family” of Zarmon’s eponymous Tel Aviv-based advertising agency, Zarmon Group, have tested out the tool, he said.

What lies beneath

The AdGPT algorithm is built on existing large language models (LLMs) from the likes of Google, OpenAI and Stable Diffusion. The company blends a variety of open-source models with its in-house model to achieve its desired results.

The tool also uses a combination of machine learning techniques, including natural language processing, computer vision and deep learning models, to train on thousands of successful ads from the AdGPT founders’ past campaigns. Because of this ability to train on successful ads, AdGPT’s AI-generated ads have “proven that they convert better,” Zarmon claimed.


AdExchanger Daily

Get our editors’ roundup delivered to your inbox every weekday.

AdGPT uses computer vision techniques that break down and analyze the textual and visual elements of ads, while the deep learning models discern patterns and styles that perform well on different platforms.

Many ad creatives have fretted that AI could make them lose their jobs. After generative AI rocketed into the public eye, “we had a meeting here in the agency with our guys in the digital department” that gave rise to the idea of AdGPT,” Zarmon said, who runs the ad agency Zarmon Group. They hired developers and a CTO and spent about 10 months training the tool.

Training the tech meant tapping into the collective ad industry experience of Zarmon and his three co-founders. They have fed their decades of knowledge of creative tactics and best practices, such as headline size and “the right color for the right offering,” into AdGPT.

Looking ahead

As for what’s next, AdGPT has a couple more tools in the works that will complement the existing product, according to Zarmon. The company will soon release an AI-powered cross-platform optimization tool that adjusts ad budgets based on which platform is delivering the best ROI.

“When you go to Meta or Google, every platform is doing the optimization for themselves,” Zarmon said. “Meta and Google are not going to help each other, because they are competitors.” So there is a need for a neutral optimization tech.

Eventually, the goal is for the cross-platform optimization tool to integrate with all the ad platforms, but Meta, Google and Bing will be the initial focus, Zarmon said.

The startup is also working on a rating feature that will rank the AI-generated ads and suggest the best choices for advertisers.

Pre-launch, Zarmon Group provided AdGPT with $1 million in pre-seed funding. But in Q4, the bootstrapped startup plans to raise money to expand its 12-person team and product offerings. For instance, AdGPT wants to branch into video ads.

“We realized we needed to move very fast because, one day, [AI] will replace us,” Zarmon said. “If you can’t beat them, join them.”

Must Read

Comic: TFW Disney+ Goes AVOD

Disney Expands Its Audience Graph And Clean Room Tech Beyond The US

Disney expands its audience graph and clean room tech to Latin America, marking the first time it will be available outside the US. The announcement precedes this week’s launch of Disney+ with ads in Latin America.

Advertible Makes Its Case To SSPs For Running Native Channel Extensions

Companies like TripleLift that created the programmatic native category are now in their awkward tween years. Cue Advertible, a “native-as-a-service” programmatic vendor, as put by co-founder and CEO Tom Anderson.

Mozilla acquires Anonym

Mozilla Acquires Anonym, A Privacy Tech Startup Founded By Two Top Former Meta Execs

Two years after leaving Meta to launch their own privacy-focused ad measurement startup in 2022, Graham Mudd and Brad Smallwood have sold their company to Mozilla.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

Nope, We Haven’t Hit Peak Retail Media Yet

The move from in-store to digital shopper marketing continues, as United Airlines, Costco, PayPal, Chase and Expedia make new retail media plays. Plus: what the DSP Madhive saw in advertising sales software company Frequence.

Comic: Ad-ception

The New York Times And Instacart Integrate For Shoppable Recipes

The New York Times and Instacart are partnering for shoppable recipe videos.

Experian Enters The Third-Party Data Onboarding Business

Experian entered the third-party data onboarder market on Tuesday with a new product based on its Tapad acquisition.