MediaScience: AI Disclosure Has No Impact on Ad Performance

Will labelling a video ad as AI generated damage its performance?

Many advertisers tend to think so, but new research from MediaScience suggests that this may not be the case. 

A recent study conducted by the market research firm found no decline in any performance metric when content was labelled as being AI generated, suggesting disclosure is not as significant a threat as many advertisers have previously assumed. 

“There has been a lot of anxiety in the industry about what happens when you tell people an ad was made with AI,” says Dr. Duane Varan, CEO of MediaScience. "The data gives us a clear answer: if the creative is good, disclosure does not hurt it. Advertisers do not need to be afraid of the label.”

‘No adverse change’ for AI disclosures

MediaScience tested four labelling approaches, reflecting current frameworks under consideration by legislators in the US and the EU. These were a text label in the first three seconds of the ad, a delayed text label from seconds four to six, a text label that lasted throughout the duration of the video and an icon for the duration of the video. These were tested against responses to videos with no labelling. 

According to the study, there was no adverse change in performance for these ads under any of the labelling conditions. Other factors, such as brand choice, ad memory, brand recognition, brand attitude and perceived production quality also saw no significant difference from the control. 

However, the labelling did increase awareness that the advertisements were created by AI. Running a disclaimer during the first three seconds increased awareness of AI by 28%, while running the label for the duration of the ad increased awareness by 36%. 

Regulatory pressure increases 

This study has been conducted as regulatory pressure around the use of AI in video advertising intensifies. 

New York, for instance, introduced a new law in June which requires specific disclosures when advertisements include what it describes as “synthetic performers” – people generated using AI or other software. 

A company that fails to disclose AI generated advertising in accordance with the law could be fined US$1,000 for its first violation, and US$5,000 for any further violations.

The EU is bringing in similar legislation through the EU AI act, which will ask for binding disclosure obligations for AI generated advertising, and comes into effect in August 2026. 

Using AI in advertising

Despite fears around AI advertising disclosures, many organisations are integrating the technology as a core part of their strategy. 

WPP, for instance, recently announced the launch of HEX, its new studio built for AI-led marketing. Employees within HEX have already created AI campaigns, AI assets and TV ads for various brands – including using AI coaching and motion capture to translate data into personalised dirt patterns at SXSW 2025 for Unilever’s Dirt is Good campaign.

“Creative technology sits at the intersection of imagination and craft,” says Richard Glasson, CEO of WPP Production. “WPP Production has supported this extraordinary programme from the very beginning because we believe deeply in constantly finding new ways to make the best work. 

“That commitment is rooted in one of our core values: nurturing the next generation of talent and giving them unparalleled opportunities to create culture-shifting work through emerging technologies and the power of their own creativity.”