Borzo Presents Online Ad Study AI vs Human a Marketing Battleground. Who Optimizes More?

• AI generated online advertisements have 26% lower CAC on Google Ads but are also low on bringing customers by 32%

• Human generated online ads bring 9.5x customers compared to AI generated ads on Facebook and Instagram

• AI cannot replace the job but can reduce turnaround time

With the buzz around AI driven tools gaining prominence in the last six months and marketing moving towards use of various AI tools, Borzo (erstwhile WeFast), a global intra-city courier delivery service has released a marketing case study to explore the effectiveness of AI-driven advertising tools compared to those developed by human teams.

In this advertising and marketing experiment, Borzo released two sets of advertising banners on Facebook, Instagram, and Google. The first set was created entirely by 3 AI tools namely ChatGPT, MidJourney and DALL-E and compiled using Viewst, while the second set was developed by the Borzo’s marketing team. Both sets of banners were run parallelly over a month with a total budget of USD $19,065.

Latest Insights: AiThority Interview with Vova Kyrychenko, CTO at Xenoss

In the development of banners using AI, ChatGPT contributed copy, MidJourney and DALL-E developed creatives and final output was compiled in Viewst. The marketing team consisted of a team of  copywriters and designers. The paid specialists were common for both the campaigns as they optimized and evaluated the results.

The Facebook and Instagram advertising campaign showed that human-designed banners were more effective in bringing in customers, with a staggering 9.5x  more customers compared to AI-generated banners. The Customer Acquisition Cost  (CAC) of AI banner ads was also 2.5X higher than human-made banner ads. The AI banner ads had 3X higher Clickthrough Rate (CTR) compared to human designed banner ads.

Overall it can be observed that AI generated ads are more effective in getting attention but fall short on generating clients despite high cash burn. In comparison to this, though human-designed ads draw less attention but are more effective in generating leads whilst burning less.

The Google Ads campaign showed that AI banners with texts had 26% lower CAC compared to human-designed banners with texts and 32% better View-Through Conversion (VTC), despite the fact that AI banners showed a worse CTR.

Latest Insights: AiThority Interview with Luke Damian, Chief Growth Officer for Applause

The campaign showed that human-created campaigns took approximately 3-4 days to be ready for execution taking into account all the planning, previous task load etc while AI was more efficient, taking only 4 hours. However, using AI was a tedious task as it required 50-60 prompts to generate the final AD images. Conversely, human designs underwent very few revisions once the brief was communicated.

“We always look for innovative ways to engage our audience and this time we have taken a brave attempt at testing our marketing team by pitting them against AI.” said Devesh Gangal, Country Marketing Manager, Borzo, India.

Latest Insights: AiThority Interview with Ahmad Al Khatib, CEO and Founder at Qudo

[To share your insights with us, please write to sghosh@martechseries.com]