AI’s role in marketing seems to grow bigger and bigger each day, with Google rolling out new creative tools and X launching AI-generated ads this week. Meanwhile, Australia’s IT outsourcing market is booming, and TikTok just hit a record $6 billion in consumer spending.
Here’s everything you need to know.
Get the essential news you need every Friday with our weekly digest. Don’t forget to subscribe to keep up with the latest in marketing.
1. Google Launches Smarter Ad Creatives
There’s something new from Google every week; this time, it’s an AI feature that lets advertisers generate tailored images, including photos of people, and use them across Performance Max, Demand Gen, Display, and Apps campaigns.
With Imagen 3, advertisers can use text prompts to generate images. They can also have control over the creative process by refining these prompts through specifying demographics or hiding unsatisfactory results.
More importantly, there are safeguards set in place against unscrupulous (or potentially unscrupulous) practices, such as generating images of brand products, celebrities, children, and inappropriate content.
Google is also introducing new tools like asset-audience recommendations that reveal which visuals resonate well with audiences, AI-generated image suggestions, and testing capabilities for feed-only Performance Max campaigns.
What this means for you:
If you’ve ever struggled to find the right images for an ad, Google’s new tools will surely save you time and effort. You can now generate custom visuals that fit your preferences instead of relying on generic stock photos. Plus, with audience-based recommendations and testing tools, you’ll have more insight into what actually works for your campaigns.
2. AI-Powered Ads Arrive on X
Google is not the only tech giant automating ad creation. X, formerly known as Twitter, is rolling out AI-generated ads powered by its AI platform, Grok. Promising to make ad creation as easy as pasting a URL, the tool scans a website’s homepage and churns out ad copy, imagery, and a CTA. Don’t worry – you can still tweak the results if they need further editing.
According to X’s new Global Head of Marketing Angela Zepeda, 70 of their top 100 advertisers have returned after the brands’ mass exodus post-Musk acquisition. However, relationships with some advertisers still remain tense, marred with politics and unsavoury lawsuits.
What this means for you:
This new feature would make your life easier if you’re running ads on X. Instead of writing a copy from scratch and sourcing images yourself (like how we’ve always done things…), Grok can take care of the job by generating a complete ad, just like that.
You will still have some control over the outcome, though, so make sure the generated ad still reflects your brand’s voice and image.
3. Australia’s IT Boom and What It Means for Marketing
Let’s move forward with an update closer to home. Australia’s IT outsourcing market is apparently booming and projected to surge at 9.41% annually until 2029, potentially reaching a staggering US$21.26 billion.
This is a result of businesses turning towards external service providers, from software development to cybersecurity, to prioritise efficiency and cost savings while having access to specialised expertise.
The boom in IT outsourcing may also pave the way for a similar trend in marketing services, as companies recognise the benefits of looking beyond the country’s borders for more competitive rates. That said, while outsourcing can provide cost benefits, there’s still no substitute for a virtual marketing manager who truly understands your brand, your growth objectives, and the nuances of the Australian market.
What this means for you:
The outsourcing boom creates an opportunity for you to strategically allocate your resources and expertise. While offshoring routine or technical tasks can save you time and money, it’s crucial to weigh the cost benefits against hiring a dedicated marketing manager who intimately understands your business and target audience.
Consider a hybrid approach and outsource the time-consuming or labour-intensive aspects of the job while reserving the critical strategic planning for yourself.
4. TikTok Sets a Record in Consumer Spending
TikTok, along with its Chinese counterpart Douyin, has officially broken records when it became the first non-game app to generate $6 billion in annual in-app purchases – more than twice the earnings of any other app or game. The ByteDance-owned social media giant also posted an impressive $1.9 billion in in-app purchase revenue in the fourth quarter of 2024.
A good chunk of this revenue comes from users buying virtual gifts and tokens for creators, where TikTok takes a 50% cut, showing the platform’s ability to transform user engagement into a lucrative business.
What this means for you:
The takeaway here isn’t just that TikTok is raking in billions – it’s that people are willing to spend real money on digital experiences, as long as they feel personal and engaging. It’s all about converting engagement into revenue, and we can follow the lead of brands and creators who understand how to build meaningful connections.
If your strategy is still focused on views instead of engagement that converts, you’re missing out on a lot. Beyond creating content, the challenge is knowing how to monetise audience attention in a way that feels organic and valuable.
Keep up with the latest industry news with our weekly updates. Subscribe now and stay informed about the trends and insights that matter the most to your business.
