Google Ads Now Lets AI Generate People in Ads 🤖

Ads on a budget? Sign us up! With AI in the mix, we might be heading towards a future where real actors in ads become a rare sight 🫣.

Hi there, and welcome to another issue of The Ecom Press 🗞️!

This week, we’re unpacking Google’s game-changing AI update that could redefine ad creation. Meanwhile, Meta’s new inventory filter settings might shake things up for brands concerned about where their ads appear. And, of course, what’s an ecommerce week without news of partnerships? Adidas and Prime bring the heat this time 🔥. 

Plus, in Ecom Insider, we’re breaking down how a beauty brand pulled off a 17% monthly revenue boost in just six hours 🤯!

Ready for this week’s roundup? Let’s dive in 🚀.

In a rush? Here's the juice🤭:

🤖 Google Ads now lets AI generate people in ads.

⚙️ Meta makes major ad placement changes to inventory filter.

👟 Adidas sets to offer Prime benefits on its website and app.

📚 Case Study: How Charlotte Bio Turned a 6-Hour Flash Sale into a 6X Revenue Surge

⚡️Worthy Mentions

🤖 Google Ads now lets AI generate people in ads.

Google Ads is rolling out AI-powered updates and new tools that help advertisers create more engaging and personalized ads. These updates allow businesses to generate images of people, test creative assets in Performance Max campaigns, and get AI-backed recommendations for better audience targeting.

Here’s the scoop 🍨:

🖼️ Generative AI for Human Imagery: Advertisers can now create AI-generated images of adult people using text prompts in Performance Max, Demand Gen, Display, and Apps campaigns. This feature, powered by Imagen 3, allows brands to create highly relevant lifestyle visuals that align with their marketing message.

However, Google has strict policies—advertisers cannot generate images of children or minors, celebrities & politicians, brand-name products, and sensitive or explicit content. Also, all AI-generated images will carry a SynthID tag to ensure transparency.

🔍 Asset-Audience Recommendations: Google is introducing asset-audience recommendations, giving advertisers insights into which types of visuals work best for their target audience. For instance, if “cozy home settings” or “urban cityscapes” drive better engagement, Google will suggest those themes to help advertisers refine their visuals.

Additionally, Google will soon suggest AI-generated images to refresh ad creatives, eliminating the need for constant manual uploads.

⚡ Asset Testing for Performance Max Campaigns: Retailers using feed-only Performance Max campaigns (without additional creative assets) can now test the impact of adding text, image, and video assets— including AI-generated ones.

Advertisers will be able to compare:

• Campaigns with no additional creative assets

• Campaigns enhanced with AI-generated visuals and text

This beta feature is available to select advertisers, and businesses interested in participating can contact their Google account representative. 

To see it all in action, see GIF here.

Why it matters 🤷‍♂️

AI-generated visuals are becoming a core component of creative strategy, and while this unlocks new possibilities, it also introduces a flood of AI-generated ads into the industry. Will consumers respond positively, or will overly polished, artificial visuals make ads feel less authentic? Perhaps, it’s time to really consider striking the balance between AI efficiency and genuine, human-centered storytelling.

⚙️ Meta makes major ad placement changes to inventory filter.

Starting February 24, 2025 (yesterday, to be precise), Meta now automatically sets the default inventory filter for in-content ads and Audience Network to Expanded. This adjustment means ads will now appear alongside a wider range of content, increasing reach but also raising concerns about brand safety. 

Previously, the Moderate setting was the default, filtering out highly sensitive content. While brands that have already selected a specific setting won’t be affected, all new campaigns will default to Expanded unless changed manually.

The lowdown ⬇️

🔄 What is changing? Meta’s inventory filters help advertisers control the type of content their ads appear next to. With this update, any new ad sets that include in-content placements (Facebook Reels, Instagram Reels, in-stream videos, Audience Network, etc.) will default to Expanded, exposing ads to a much broader range of content that meets Meta’s Content Monetization Policies.

This change does not affect existing ad sets where advertisers have already selected Moderate or Limited settings. However, any new campaigns will require manual adjustments if brands want to maintain stricter content adjacency controls.

📊 How Inventory Levels Work

• Expanded (New Default) – Maximizes ad reach by placing ads next to all content that follows monetization policies.

• Moderate (Current Default) – Excludes highly sensitive content while balancing reach and safety.

• Limited – Excludes even more sensitive content, including live videos, prioritizing brand safety but reducing reach.

🛠️ How to Adjust Your Inventory Filter Settings in Meta Ads Manager

1. Create or edit an ad in Ads Manager.

2. Under Placements, click Show More Options.

3. Locate Inventory Filter and click Edit.

4. Choose a setting for:

   • Feed ads (Facebook & Instagram Feeds and Reels)

   • In-content ads (Facebook In-Stream & Reels ads, Audience Network)

5. Save and launch your campaign.

This setting ensures your ads appear only next to content that aligns with your brand’s values.

Why it matters 🤔

While Meta’s expanded inventory setting could reduce ad costs by increasing placement availability, it also removes a layer of control over where ads appear. For businesses that prioritize brand reputation, consider A/B testing for performance. With Meta’s evolving content moderation policies, trusting automated placements without monitoring their impact could lead to PR issues.

👟 Adidas sets to offer Prime benefits on its website and app.

Starting Spring 2025, Adidas.com and the Adidas app will offer Buy with Prime, allowing Prime members to shop on Adidas’ platforms while enjoying Amazon’s fulfillment perks, including fast, free delivery, easy returns, and 24/7 support. This partnership marks a significant milestone for Amazon’s DTC service, as Adidas becomes one of the biggest brands to integrate Buy with Prime.

Here are the deets ⬇️: 

✅ Implication for Shoppers: Customers browsing Adidas’ website and app will see a Buy with Prime option at checkout. Once they log into their Amazon account, their Prime membership is verified, and they can complete their purchase using Adidas’ existing payment options.

🚚 Amazon Handles the Logistics: After purchase, Amazon will fulfill all Prime-eligible items, ensuring fast shipping, hassle-free returns, and tracking updates through both Amazon and Adidas platforms.

🏆 A Win for Adidas & Amazon: Adidas taps into Amazon’s massive fulfillment network without listing products on Amazon.com, while Amazon strengthens Buy with Prime’s reputation as a trusted fulfillment solution for major brands.

📈 Proven Success with Other Brands: Other retailers using Buy with Prime—including Steve Madden, Laura Mercier, and Elizabeth Arden—have seen a 16% revenue increase per shopper, proving that customers are more likely to buy when Prime benefits are available.

Why it matters 🧐

Such partnerships indicate frictionless checkout and fast fulfillment as the price of staying competitive. Meanwhile, Amazon is strategically extending its influence beyond its own marketplace, using logistics as its power play. After all, what better way to tighten its grip on ecommerce while letting brands believe they’re still in control?

🛎️ The Ecom Press Insider

Ecom Fact: A recent FedEx study found that 97% of consumers have abandoned purchases due to an inconvenient shopping experience. The report highlights that 81% expect home delivery, 76% want free shipping, and 68% rely on real-time tracking. On top of that, complicated return policies are a dealbreaker, often discouraging repeat purchases (Source: FedEx Report).

Certainly, ecommerce is beyond product selection. It’s about prioritizing a seamless end-to-end experience for customers, ensuring that every touchpoint in the sales funnel is smooth, intuitive, and hassle-free.

📚 Case Study: How Charlotte Bio Turned a 6-Hour Flash Sale into a 6X Revenue Surge

Charlotte Bio, a rising star in the organic beauty industry, pulled off a high-impact six-hour flash sale that generated six times the usual daily revenue. With a 40% storewide discount, strategic onsite popups, and a targeted countdown bar, the brand successfully converted casual browsers into buyers. 

The campaign didn’t just increase sales; it also drove 17% of monthly revenue in a single evening while maintaining average order value.

The Problem

Despite having a loyal customer base, Charlotte Bio faced conversion challenges, particularly among hesitant shoppers who followed the brand but had not yet made a purchase. They needed a high-impact strategy to:

• Convert first-time visitors into paying customers

• Increase urgency around limited-time promotions

• Maximize engagement during a short sales window

Without an effective way to immediately capture attention and reinforce urgency, the risk of shoppers delaying purchases—or worse, bouncing—was high.

The Strategy

Charlotte Bio designed a layered promotional strategy that combined:

1. Targeted Flash Sale Rollout

• 6 PM: Exclusive access for returning customers

• 7 PM: Sale opened to all visitors

2. High-Impact Onsite Popup

• A popup announcement appeared instantly when visitors arrived, making the sale impossible to miss.

• A one-click discount application ensured frictionless checkout.

3. Persistent Discount Reminder via a Countdown Bar

• Users who didn’t apply the code saw a sticky bar at the top of the site, reinforcing urgency with a countdown timer.

4. Offsite Promotion via Email & Paid Ads

• Email blast at 6 PM informed subscribers about the sale.

• Paid ads and social media posts at 7 PM expanded reach beyond existing customers.

The Results

📈 6x revenue boost—the campaign generated six times the usual daily revenue.

📅 17% of monthly sales made in just six hours.

📲 Mobile popups outperformed desktop—over 700 discount applications from mobile users alone.

⏳ The countdown timer played a key role in maximizing conversions.

🛍️ Average order value remained stable, showing that customers didn’t just buy discounted items but stocked up on more products.

⚡️Worthy Mentions

• Instagram launches text-only testimonials to let creators earn from brands through Partnership Ads.

• Nike and SKIMS unite on a new fitness brand for women.

• Microsoft unveils Majorana 1 chip, capable of quantum computing.

• Chegg sues Google for AI Overviews allegedly hurting business and revenue streams.

• Apple debuts iPhone 16e with impressive features at price point of $599.

Wrapping up…

AI is changing how ads are made, Meta is tweaking how they’re placed, and Amazon is making sure Prime is everywhere. The game keeps evolving, and staying ahead means keeping up 🧗🏽‍♂️.

What’s next? New trends, unexpected updates, and innovations we didn’t see coming—that’s what keeps it exciting 🤩.

Well, that’s it for the week, forward thinkers 🗿.

As always, stay curious, hit that subscribe button, and we’ll catch you next week 🫰🏽.