Small Businesses Increase AI Video Ad Use on TikTok, Instagram

Joyce de Castro Joyce de Castro · · 2 min read

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Small and mid-sized businesses are increasingly integrating AI-driven video advertising across platforms like TikTok and Instagram Reels, a strategic shift influenced by video’s growing impact on search engine rankings.

This adoption reflects a broader trend among marketing agencies to scale video content production for numerous clients, treating video creation as a structured pipeline rather than individual projects.

Agencies have focused on integrating small and mid-sized business (SMB) clients onto TikTok due to the platform’s video-centric nature, according to industry reports. Video content now significantly influences search engine rankings, with Google adapting to surface more short-form video and reporting on social video in Search and Discover, as noted by Google’s Liz Reid.

TikTok functions as a search engine for 49 percent of U.S. consumers, offering a new discovery source for local businesses, research from WARC indicated. This highlights the platform’s dual role as both a social media channel and a significant information gateway.

The rapid adoption of generative AI for video ad creative is also evident, with 86 percent of advertisers either using or planning to use the technology. SMBs are adopting generative AI faster than larger enterprises, according to SEJ.

A three-step pipeline has emerged for scaling AI video ads effectively. This process involves using client photos and business context to build video foundations, selecting an AI video generator that accepts reference images, and then adding AI voiceover and captions in various languages.

Companies like Leadzai leverage existing client assets to create new video content. Adobe Express and ChatGPT are among the tools available for generating video and enhancing creative elements.

The key to scaling video production for agencies managing numerous SMBs is to treat video as a pipeline, focusing on relevance and consistency rather than simply volume, industry experts said. This approach ensures that content remains effective across diverse platforms such as YouTube, Instagram, and TikTok.


Joyce de Castro

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Joyce de Castro

Joyce is a core team member at Rabbit Rank and the lead author covering SEO news, algorithm updates, industry trends, and actionable ranking strategies.

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