From improving video quality to reducing production costs, marketers should consider using artificial intelligence (AI) to help with content creation. Read our survey results to see how many companies use AI-generated videos for digital marketing purposes in Australia, and the benefits and challenges the technology may bring.

AI-generated videos

Consistently producing digital marketing video content can be a challenge for companies that may need more resources, manpower, or time for content creation. However, the latest technologies, such as AI marketing tools, can help brands create high-quality content, faster. Embracing AI-generated videos will also set companies apart from competitors who still need to utilise these tools while positioning the business as innovative and forward-thinking.

Capterra's first article in this two-part series examined the importance of social media video marketing for businesses and whether Australian companies use organic or paid advertising content. But what about using AI-generated videos to make advertising content? How can brands incorporate AI videos into their digital content marketing strategies?

To determine the number of companies using AI-generated videos as part of their marketing initiatives, Capterra interviewed 255 marketing professionals and executives working in companies that create video content to find out: how do they use AI videos to engage with target audiences? You can find our full survey methodology at the bottom of this article.

What are AI-generated videos?

AI video is created by artificial intelligence technologies and algorithms from scratch or an existing video clip. Digital content creators must input datasets (such as text, audio and video clips, and images), which are combined and manipulated into the final video output. AI video is made via machine learning techniques and requires minimal human intervention. AI videos can be used for marketing, advertising, and entertainment purposes.

Over half of companies have used AI tools to create video content

AI adoption is slowly increasing for businesses in Australia, as the digital age continues to transform how brands advertise services and products, and engage with audiences. Social media sites, for example, enable brands to interact with consumers in real time using shareable types of content, such as videos. Tools such as AI video generators can be helpful for marketing professionals who regularly publish videos on social media platforms or the company website. 

The awareness of such technology is reflected in Capterra's research; more than half of respondents (53%) know what "generative AI tools to create video content" are, and another third (37%) are familiar with the concept but not the name of such tools. This means that 90% of surveyed marketers have some level of knowledge about using AI tools to create videos. But are companies using them to aid their content marketing strategies?

Over half of survey takers (54%) say their company has already used generative AI tools to create video content, and another 34% say their company is not currently using such tools but is interested in doing so. As AI technologies continue to advance, businesses are more likely to explore new ways to leverage AI-generated videos as a means to connect with audiences. AI video tools can help marketers streamline tasks that require a lot of time and resources to create, such as manual editing and adding special effects.

A bar chart to show whether brands are already using AI generated videos in Australia
Tips for marketers: Personalised video marketing uses data insights based on consumer interests and behaviours to create messages that speak directly to the viewer and hold their attention. Video marketing software can help marketers customise their content to align with consumer preferences by creating videos with eye-catching text, personalised voiceovers, and engaging screen recordings.

Marketers already using AI tools say the biggest benefit is improved video quality 

AI-generated videos open up new possibilities for content creators and marketers. Improved video quality was the most frequently selected benefit of using AI tools by survey-takers (61%). Poor-quality videos could deter consumers from being interested in a brand or product. But if used effectively, quality videos can positively impact a business by generating more followers and engagement on social media, where video content is often shared. 

The second-biggest benefit of using generative AI tools to create video content (according to survey respondents) is higher engagement (57%), which goes hand in hand with producing quality video content. Adding quality video content to a brand's website or social media pages can increase exposure, meaning more people will see the content and interact with the brand.

The biggest benefits of AI generated videos for companies in Australia

But there are also drawbacks when it comes to using generative AI tools to create video content. According to survey respondents, the top two challenges are difficulty achieving the desired style of videos (57%) and generic or repetitive content (50%).

AI-generated videos may require additional manual oversight. Some generative AI video tools may operate within predefined templates or styles, which can limit creative flexibility, resulting in videos that look similar to each other. It's important for businesses to carefully weigh the benefits of AI video content against the drawbacks to see how it aligns with their marketing goals. While a powerful tool, AI video generators are most effective when combined with human creativity and oversight.

Tips for marketers: AI-generated videos may lack the depth of storytelling and emotional connection that content creators naturally provide. It's vital to avoid losing the human creativity that AI might struggle to replace. Creative management software can help marketers produce a wide range of brand messages tailored to different audience segments. Adding interactive campaign elements like videos can be tested on consumers to see their reception and help gather valuable insights to adjust marketing strategies accordingly.

60% of companies interested in trying AI videos are considering them for their marketing strategy

Respondents who don't currently use AI video generators to create content but are interested in the tools were asked to describe their level of interest. The majority (60%) said their company is interested enough to consider using it as part of their video marketing strategy. 

For smaller businesses with fewer employees, AI-powered video creation can help streamline the content production process to generate a large volume of videos quickly and efficiently. This is important for maintaining a consistent content schedule.

Bar graph showing the levels of interest in using AI-generated tools

Considering the potential benefits of using AI tools to make videos, the tools could very well transform and revolutionise how marketers produce visual content. But how quickly are companies willing to adopt and leverage AI-generated video content?

Surveyed marketers said their company plans to start using AI video tools:

  • Within one to six months (48%)
  • The company hasn't decided when yet (27%)
  • In more than six months (17%)
  • Within the next 30 days (8%)
Tips for marketers: AI can generate realistic animations, visual effects, and graphics that enhance the overall appeal of marketing videos. Animation software can help create imaginative content that captures audience attention. It can also enable precise control over design elements to ensure brand consistency (including colours and visual identity) throughout the videos. This consistency reinforces brand recognition and messaging.

How to incorporate AI videos into a content marketing strategy 

There are several important points that marketers should keep in mind when implementing AI-generated video content into their marketing strategies: 

1. Audience relevance: Understand the target audience to ensure the videos align with their preferences, behaviours, and needs. Personalised video marketing can aid the viewing experience.

2. Message and brand consistency: Ensure these align with brand identity and values.

3. Data privacy: It is crucial that the data used to inform AI-generated content is accurate, reliable, and ethically sourced. Adhere to data protection regulations to safeguard user data.

4. Copyright concerns: Review the terms of use for AI platforms to understand ownership rights and ensure the content does not infringe on intellectual property rights or copyright.

5. Testing and optimisation: As with any marketing content, it's vital to conduct A/B testing to assess the effectiveness of AI videos. Marketers can optimise videos based on performance and feedback.

6. Budget and resources: Evaluate the costs associated with AI generators, which can include subscription fees, employee training, and additional manual editing or oversight. 

AI tools will continue to make the development of video content easier for marketing professionals. The outlook on the use of AI tools for video content creation is positive; the majority of survey respondents at companies already using these tools said they plan to use them more and more (80%). 

As new social media platforms continue to emerge, AI-generated videos can help marketers adapt their content to suit these changes without having to relearn production techniques. By adopting cutting-edge AI technology for video marketing, brands can position themselves as forward-thinking compared to their competitors, which can attract the attention of consumers and potential partners.

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Data for Capterra’s Video Content Marketing Survey was collected in June/July 2023. Results comprise responses from 255 Australian participants. The criteria to be selected for this study are as follows:

  • Australian resident  
  • Between 18 and 65 years of age
  • Must work within the marketing or executive management departments and perform social media content creation/ management, paid ad, or digital marketing tasks
  • Company must use Instagram, Facebook, TikTok, YouTube, LinkedIn or Twitter for marketing purposes and create video content