AI ads record 0.76% CTR with human ads at 0.65%: Report

A new academic study examining real-world advertising performance found that generative AI can match human-created ads in driving consumer engagement, according to research conducted with data from Taboola.

The study was carried out by researchers from Columbia University, Harvard University, the Technical University of Munich and Carnegie Mellon University. It analysed hundreds of thousands of live advertisements shown on Taboola’s performance advertising platform, covering more than 500 million impressions and about 3 million clicks.

Titled ‘AI Ads That Work: How AI Creative Stacks Up Against Humans,’ the research compared AI-generated ads with those created by humans to measure differences in click-through rates and engagement.

The findings showed that AI-generated ads performed on par with human-made ads. In raw results, AI ads recorded an average click-through rate of 0.76%, compared with 0.65% for human-created ads. When researchers applied stricter statistical controls, performance between the two groups was found to be comparable.

The study also found that AI ads performed best when they did not appear artificial. AI-generated ads that were perceived as more human-like achieved higher engagement than both human-made ads and AI ads that looked overtly machine-generated.

Researchers identified the presence of a large, clear human face as a key factor in making ads appear trustworthy. The study noted that AI-generated ads were more likely to include such visual cues than human-made ads, based on platform guidelines and restrictions.

The analysis showed that AI-generated visuals increased or maintained click-through rates without lowering conversion performance, suggesting that advertisers could scale production without reducing effectiveness. Early adoption of AI-generated ads was most evident in sectors such as food and drink and personal finance.

Commenting on the findings, Oded Netzer, Vice Dean for Research, Columbia Business School, said, “Taboola’s platform provided us with a literal gold mine of real-world data that is simply unavailable in a lab setting. By analysing over 500 million impressions, we were able to move past the hype of GenAI and uncover its real impact in large-scale settings. Our findings prove that when AI is used to enhance human cues, like the trust found in a human face, it doesn't just match human performance; it often sets a new ceiling for engagement.”