The era of “we’ll add video when we have the budget” is over. In 2026, Google’s AI creative suite, (Veo and Nano Banana Pro), has put video production within reach of businesses that couldn’t have considered it even two years ago. Here’s what’s changed, and what it means.
What can be achieved with these tools?
Google recently wrote about “How a Greek travel agency used AI video to double its online revenue”. The company in question, Cosmorama, had reportedly hit a performance ceiling with traditional media. They had seen branded searches declining, younger audiences not converting, and high-quality video production was simply too slow and expensive to be viable. So it decided to test out AI-generated video:
Rather than producing conventional travel ads, Cosmorama and its agency built campaigns around dream-like, impossible imagery: a full Japanese tea ceremony conducted on the wing of an aircraft in flight; a flamenco dancer performing in the clouds. Content that simply couldn’t have been realised without AI.
How did they do it?
These videos were produced using two of Google’s AI tools: Nano Banana Pro for image creation and Veo 3 for video generation.
The process ran in stages. Nano Banana Pro was used first to create actors and optimise backgrounds. Those assets were then fed into Veo 3 for refinement. Once quality targets were met, the assets were converted from 16:9 to 9:16 formats.
Please note that “anyone with a Google account can generate video clips at no cost using our latest video generation model, Veo 3.1.” “All personal accounts now get 10 video generations every month at no cost — and you can always upgrade if you need more.”
What does Google Ads’ Asset Studio offer?
It’s worth being clear about one thing: the Cosmorama results were achieved using the full, standalone versions of Veo 3 and Nano Banana Pro, not through Google Ads Asset Studio.
The Asset Studio, which is accessible directly within Google Ads (under Tools), is a simplified version, available for any advertiser. You can build and manage images and video for ad formats, adapt existing assets, and edit video without going back to a production team:
But please realise that the tool available within Google Ads has real limitations compared to the standalone versions. For example, there is no scene-level prompting – Google decides how to animate your images, so advertisers have no control over motion, pacing, or narrative. Human figures frequently trigger errors, meaning anything resembling a face tends to fail. Audio options are limited to a pre-loaded library with no ability to upload custom music. It can even struggle with text and company logos, from our experience.
AI compliance
Regulatory scrutiny of AI-generated advertising is beginning. New York has passed legislation requiring disclosure when ads feature a “synthetic performer,” with the law taking effect in June 2026. For now, Asset Studio’s own restrictions prevent the generation of realistic human faces, which means most output falls outside the current scope of that legislation. Google also applies invisible watermarking to AI-generated content via its SynthID technology, providing infrastructure that could support future disclosure requirements.
If you want to proactively disclose AI use, there’s currently no built-in mechanism in Google Ads to do so. That’s worth monitoring as the landscape evolves.
The opportunity right now
If an advertiser does not have the time, resources or budget to create video content, Google’s Asset Studio offers a quick, free solution. For example, the ‘Create video from images’ feature allows you to use Google AI to turn images into videos. You simply add one or two images to create a 5 or 10 second video. (However, please bear in mind that videos need to be over 5 seconds in most placements.) You then click “Generate video clips”, and Google usually takes a minute or two to create at least two variations of a video, in one or two scenes. The end result basically zooms in or pans around the image that you have selected. You then get to choose a video template, music and one or two 30 character ‘key messages’ (depending on the number of scenes). Then add the Business name and logo and Google puts it all together into your video, which you have the option to tweak (change music, key messages, etc.).
While the “template settings” (shown above) provide a starting point, there is a lack of flexibility over the end product, which means many businesses may find the feature falls short of their creative needs.
There is also the option to “Easily create high quality, engaging video ads that drive results” (according to Google), using the “Create videos” option. This feature allows you to create video from one of sixty-four templates and the end result is much like the auto-generated videos Google creates for Performance Max. These can be generated from various assets, such as video or images and each template tells you what is required:
Finally, if you are able to produce a video that meets your needs, you can then opt to upload it to your public YouTube channel or “Your video ad storage channel, created by YouTube”. It/they will then be available within your Asset Library and you can start using them within your campaigns.
My conclusion
At the end of the day, Google’s Asset Studio is a genuinely useful, free tool for producing motion ads and adapting creative. But it won’t produce the cinematic, surreal storytelling seen in Cosmorama’s campaign – for that, you need the full suite and a strategy to match. And I’m almost certain advertisers are not going to double online revenue as a result of videos created in Asset Studio. Sadly.