Channel 4: AI adverts boost offered to small businesses
Channel 4 has launched a new AI tool to help small businesses create TV ads quickly and cheaply.
Following ITV’s lead, the system can turn a company’s website or social media content into a draft ad in minutes.
Broadcasters then help polish the ad, make sure it follows advertising rules, and get it ready to air.
The service is aimed especially at brands that haven’t advertised on TV before.
Businesses can use the AI tool for free to see what a TV ad could look like.
And, if they want to take it further, Channel 4 offers them paid-for options offering full support, from creative development to regulatory approval through Clearcast.
The idea is to make TV advertising less intimidating and more affordable for smaller firms, which often struggle with high production costs and complicated processes.
Sam Hicks, head of advertiser strategy at Channel 4, said: “Smart ad engine is about unlocking opportunity for SMEs, giving all businesses the tools to compete with bigger enterprises.
“TV’s reach and credibility, combined with AI-powered efficiency, lets brands visualise impactful and responsible advertising without the traditional barriers.”
The initiative is part of a wider trend across the UK broadcasting sector, with ITV and Sky also introducing AI-powered tools to simplify creative production and attract smaller advertisers.
ITV’s genAI ads manager, for example, helps create TV-ready ads in under thirty seconds, helping new-to-TV brands visualise campaigns without the usual creative or financial barriers.
The value of TV for SMEs
Despite the dominance of digital channels in SME marketing, research shows TV’s continued power.
Thinkbox’s trends in TV 2025 report shows that cutting TV from media plans could reduce brand profits by 24 per cent in the short term and 60 per cent over two years, with a potential £28bn in lost revenue across the market if every brand removed TV entirely.
TV campaigns also have a halo effect on other channels, where lower-funnel digital responses improve by an average of 13.7 per cent when TV campaigns are live.
But current UK ad spend data can obscure TV’s value for smaller businesses.
Anthony Jones, head of research at Thinkbox, noted that reports often include the ‘long tail’ of SMEs spending on search and social media, which skews perceptions of traditional media growth.
When SMEs are removed from the calculations, TV’s share of ad revenue rises dramatically, from 12.1 to 30.4 per cent, pointing to the untapped opportunity for brands willing to invest in the medium.
For SMEs facing economic uncertainty, such as upcoming tax changes in the looming Autumn Budget, AI-enabled tools like this could offer a cost-effective way to compete.
Expected measures, including potential hikes to dividend tax, VAT thresholds, and business rates, could put additional pressure on small businesses’ marketing budgets.
By lowering creative and compliance barriers, Channel 4’s platform helps SMEs leverage TV’s reach and credibility without excessive upfront investment.
This development also reflects a broader shift in the ad industry, with traditional broadcasters embracing AI and automation to attract smaller brands.
YouTube and other digital platforms have similarly invested in AI-driven ad solutions, yet Channel 4’s approach emphasises regulatory compliance and ethical advertising, areas where pure-play digital platforms often face scrutiny.