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Artificial intelligence is revolutionizing product advertising, with new research demonstrating its ability to dramatically improve engagement and conversion rates for catalog ads. A recent study involving 500 products found that AI-generated creative content, featuring elements like dynamic backgrounds and lifestyle integrations, outperformed traditional product photos. Specifically, the AI-enhanced ads yielded a 34% increase in engagement, a 28% improvement in conversion rates, and a 22% reduction in customer acquisition cost over a six-week period. While the AI faced challenges with certain categories, notably jewelry, it proved highly effective across a wide range of other product types. This technology facilitates the creation of a massive number of ad variations, a scale that would be impractical to achieve through manual methods. The initial findings of this study were shared on Reddit, sparking considerable discussion about the potential of AI in advertising. [Original Reddit Post](https://old.reddit.com/r/artificial/comments/1o8b796/generative_ai_for_catalog_ads_actually_works_real/)