How AI Ads Can Boost Business Revenue Up to $100M+

Discussing AI for Ads and What Can We Learn with Some Case Studies

Hi!

The other day, I was scrolling through my Twitter feed and came across an interesting thread about creating ads using AI. One studio became so adept at using automation in advertising its products that it grew into a startup with 20+ apps and over $100M in annual revenue.

Let's break down how it managed to take over the world (even if you haven't heard of this company, you've certainly come across its ads on Shorts, TikTok, and Instagram), what its business model is, and what tools you can use to replicate its results.

In this newsletter:

• The Codeway and Its Business Model

• How This Startup Uses AI for Ads Creating

• Best AI Tools for Your Ads

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The Company and Its Business Model

The first thing we need to deal with is who we're talking about.

It's a company called Codeway.

Codeway is an app development company founded in Istanbul in 2020. The startup states that its mission is to lead the mobile AI app space by creating applications that provide exceptional user experiences and leverage state-of-the-art technology. Codeway targets the broadest audience by developing chatbots and content generators for iOS and Android. Their services are monetized on a subscription basis.

From a technical perspective, the startup primarily relies on the GPT API. Specifically, the OpenAI model is used for Ask AI and Type AI. In addition, the company does in-house development in generative models and has a department responsible for deep learning methods and other technologies.

In total, it has developed and released more than 20 AI apps. The number of users who have downloaded these apps exceeds 125 million, and the paying audience consists of over 1 million subscribers. According to Data AI, such volumes have allowed the initially small company to reach $100 million in annual revenue.

You're definitely familiar with their apps.

But let's be honest: It's hard to surprise anyone with a “big numbers” AI startup right now. It's much more interesting to try to answer the question: How did one (relatively) small company become a global brand and monetize its products worldwide?

The answer, of course, is in the use of AI.

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How They Use AI in the Process

So, you have more than 20 apps and are targeting a multi-lingual audience, but your team is not very big. Of course, you can hire a staff of freelance marketers and invest in influencers to review and promote your services. But that would involve a considerable expenditure. So, they use generative models to create ads on TikTok, Shorts, and other social networks.

Let's take a look at a few examples.