Complete Guide to Creating Video Ads with AI

Advertise to 38,061 E-Commerce Businesses

Promote your tool, service or upcoming event - Reach Founders

Good morning!

In today’s AI Launch Codes playbook, we have shared a complete guide on how to use AI to create high-performing video ads for your e-commerce store. We break down the exact ad formats that work, when to use each one, and how to produce them using tools like Arc Ads, Sora 2, and Veo 3. If you haven’t upgraded yet, a single ad generated from this playbook can easily pay for a full year of AI Launch Codes.

In today’s newsletter

AI Launch Codes (For Premium Users Only):

This issue takes 3 minutes to read.

Let’s dive into it👇

DTC founders, your customers live on their phones. With Dreamflow, you can launch a branded mobile app for loyalty, subscriptions, drops, or VIP access without a big engineering team.

Use AI to sketch screens, then customize visually: product feeds, rewards wallets, push notifications, and checkout links.

Connect Shopify, Stripe, or your database in a few clicks and ship to iOS/Android fast so you can test, learn, and grow.

Over the last few months, our highest-converting ads for the newsletter have been AI-generated video ads.

So we decided to create a complete guide on how to create video ads using AI.

If you’re reading DTC Daily right now, there’s a good chance you clicked on an ad we made with AI.

In this playbook we will cover:

For the tutorials, we’ll be using Arc Ads. You can do the exact same things in MakeUGC.

Both platforms are easy to use, built for e-commerce video ads, and capable of producing similar results.

The goal here is not to teach you how to use a tool.

The real objective is to teach you how to think creatively so you know which type of ad to make, when to use it, and why it works.

Once you understand that, the platform doesn’t matter.

If you want this employee working for your brand today with $0 salary package, upgrade to AI Launch Codes for just $17/Month.

You can increase subscription conversions by collapsing the freebie and the subscription into a single checkout line item.

Most brands treat freebies as a marketing layer. They list them as separate products and stack promo codes on top of it.

But this creates friction. 

Nick Shackelford from BREZ(8-fig brand),, shared how they fixed this by changing one thing: they stopped selling the freebie separately.

BREZ rebuilt the product page to behave like a landing page. One primary CTA. 

You click Try Now and go straight to checkout.

At checkout, there’s only one line item:

“Variety Pack + Free Shots” on a monthly cadence.

When freebies are listed separately, customers start thinking.
Why are there two products? Can coupons stack? Can I remove the paid item and keep the freebie?

Every question lowers conversion.

Bundling everything into a single variant changed that.

Checkout got cleaner and conversion went up. Two clicks and you’re done.


Another benefit Nick mentioned was that post-purchase got simpler too. One variant meant clean Klaviyo segmentation and accurate flows

After checkout, the subscription contract stayed intact. The free shots shipped once, then automatically dropped off future orders. Klaviyo triggered four plain-text follow-ups: what to expect, product education, timing, and delivery.

Action plan for today

If customers can think at checkout, you’re leaking conversions.

Credit - Nick Shackelford 

Meta now rewards volume and variety.

Most brands are still struggling to produce enough creative to keep up.

Why brands use Cuttable:

Your secret weapon?

Cuttable

If you are a marketing team spending big on Meta, this replaces hours of manual work and agency fees.