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Sabio Delivers Double Digit Growth Driven by 39% Increase in Connected TV and OTT Streaming Ad Sales

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2 years ago

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Record revenues of US$8.9 million in Q2/2024, up 11% compared to US$8.0 million in Q2/2023High re-occurring revenues with 91% of first-half sales from repeat customersRecord second quarter Connected TV/OTT ad-supported sales of US$6.9 million, up 39% compared to US$4.9 million in Q2/2023, and representing 77% of the Company’s sales mixGross Margin increased to 61% Q2-2024 from 60% in Q2-2023Improved operating leverage resulted in Adjusted EBITDA 1 Loss of US$0.3 million compared to a loss of US$1.7 million in Q2/2023

TORONTO, Aug. 21, 2024 /CNW/ — Sabio Holdings Inc . (TSXV: SBIO) (OTCQB: SABOF) (the “Company” or “Sabio”), a California -based ad-tech company that specializes in delivering highly targeted ads, insights, and services in ad-supported streaming to top Fortune 100 brands, is pleased to announce its unaudited financial results for the second quarter ended June 30th, 2024. Unless otherwise indicated, all amounts are expressed in U.S. dollars.

“As our Q2 results illustrate, we continue to execute on our 2024 narrative and key operating attributes that will drive a sustainable and profitable growth model for the back-half of the year and going forward into 2025,” said Aziz Rahimtoola, CEO of Sabio.

He continued, “Our commitment to driving higher growth in Connected TV/OTT revenue, securing larger upfront commitments, and improving operating efficiencies has laid a strong foundation for our success. Our full tech stack — including App Science’s unique reach and insights with data integrity and fidelity at its core — has been instrumental in achieving a 91% customer retention rate. This positions us optimally as we enter our historical peak sales quarters for 2024.

It’s still anticipated that the company will seasonally benefit from political ad-spending as the election cycle continues in the US until the November election date. This macro-backdrop, complimented with Sabio’s ability to continually capture market share within the fast-growing ad-supported streaming space, will help lead to record sales and profitability for the company in 2024.”

“Despite the seasonal trends of the advertising business, where close to 70% of our annual revenues are typically generated in the second half of the year, we are pleased to have exited the first half of 2024 with the lowest first-half Adjusted EBITDA1 loss since becoming a public company in November 2021,” commented Sajid Premji, Sabio’s Chief Financial Officer.  “Sabio is firing on all cylinders as we enter the second half of 2024. Our 39% second-quarter sales growth in Connected TV/OTT ad-supported streaming continues to out-pace the market growth rate. Additionally, the predictability of our high reoccurring revenues, complimented with our recently announced record upfront commitments in our Q1 press release, will provide a springboard to near-term sales growth for the rest of 2024. 

As we continue to focus on cost discipline to support a sustainable growth model, we expect material improvements in operating leverage in the second half of the year and a return to Adjusted EBITDA profitability.” 

Second Quarter 2024 Financial Highlights

Sabio delivered record second quarter revenues of US$8.9 million in Q2/2024, an increase of 11% from US$8.0 million in Q2/2023.Connected TV/OTT sales as a category increased by 39% to US$6.9 million, compared to US$5.0 million in the prior year’s quarter, continuing the trend of Sabio’s dominant sales category, representing 77% of the Company’s sales mix, up from 62% in the prior year’s quarter. This represented the highest second quarter Connected TV/OTT ad-supported revenues in Sabio’s history.Mobile generated revenues of US$1.9 million in Q2/2024, down 36% from US$2.9 million in Q2/2023. More mobile campaigns continue to shift from mobile display to mobile streaming, which is recognized under the Company’s Connected TV/OTT revenue category.Gross profit of US$5.4 million in Q2/2024, compared to US$4.8 million in Q2/2023. Gross margin was 61% compared to 60% in Q2/2023, as Sabio continued to leverage its end-to-end technology stack, including the use of Sabio SSP supply.Adjusted EBITDA1 loss of US$0.3 million in Q2/2024 compared to a loss of US$1.7 million in Q2/2023. Despite the seasonal trends of the advertising business where the majority of spend typically takes place in the second half the year, Sabio’s focus on cost discipline and generating consistent & predictable revenue streams, driven by record upfront commitments, produced the lowest second quarter loss since becoming a public company in November 2021.13% decrease in second quarter OPEX, normalized for sales commissions and bonuses, compared to the prior year’s period.As of June 30, 2024, the Company had cash of US$1.6 million, as compared to US$1.7 million on June 30, 2023. Management believes it is well funded, with sufficient cash on hand to meet its growth objectives.As of June 30, 2024, the Company had US$5.6 million outstanding under its credit facility with Avidbank.

 1 See “Use of Non-IFRS Measures” below.

Second Quarter 2024 Business Highlights

On June 4, 2024, the Company granted 210,000 stock options under the Company’s Omnibus Equity Incentive Plan to certain directors and officers of the Company to acquire an aggregate of 210,000 common shares in the capital of the Company.  The Company does not currently pay cash to its independent directors.On April 22, 2024, Sabio’s App Science™ subsidiary announced a multi-year renewal with Pivot Marketing Group to support their clients including Toyota Motor North America. App Science’s cross-platform measurement solutions will empower Pivot to reach, engage, and validate their audiences and their behaviors at a deeper level, and will leverage the platform’s AI capabilities.

Events Subsequent to June 30, 2024:

On July 31, 2024, the Company closed of a new credit facility pursuant to the terms of a credit agreement between its U.S. operating subsidiaries including Sabio, Inc., AppScience, Inc. and FWD Tech Inc. and SLR Digital Finance (“SLRDF”). The facility replaces the Company’s existing credit facility with Avidbank and provides for a US$10 million senior-secured revolving credit facility at an interest rate of the greater of: (i) Prime rate plus 2.15%, or (ii) 8.5%. The facility has a three (3)-year term and is secured against all of the assets of the Company.

Outlook

Sabio exited the first half of 2024 with the highest first-half consolidated revenues in its history, driven by double-digit revenue growth in the second quarter.  The Company enters the second half of the year where, historically, close to 70% of annual revenues are typically generated, armed with record upfront commitments, high reoccurring revenues (91% in the first half) and lowest first-half Adjusted EBITDA1 loss as a public company. Management expects accelerating revenues and a lower cost infrastructure to culminate in the quarters ahead to a return to meaningful Adjusted EBITDA1 profitability for the year.  As Connected TV/OTT ad-supported streaming continues to be one of the fastest-growing channels in advertising, Sabio’s 34% revenue growth in this category during the first half of 2024 demonstrates that we are continuing to outpace the broader market and take market share. In further testament to the strength of our core business, when normalized for advocacy and political spending, Connected TV/OTT streaming sales grew 52% in the second quarter alone compared to the same period last year.

The inherent cost efficiencies in transitioning to this growing Connected TV/OTT streaming sales model, away from one more dependent on mobile display, has resulted in continued gains in operating leverage in the first half of 2024, driving a $2.3 million reduction in our first half Adjusted EBITDA1 loss compared to the prior year’s six-month period. As our operating infrastructure continues to become more efficient, our sales model continues to become more predictable.

This predictability helps derisk our revenue model and sets the stage for continued sustainable growth, as supported by:

High rates of reoccurring revenue, with 91% of consolidated revenues in the first half of 2024 coming from repeat customers (up from 74% in the first half of 2023), driven by our proprietary App Science™ cross-screen graph capabilities. 70% of existing brands increased their spend with Sabio compared to the prior year’s period;The ongoing addition of top-tier clients, with 28% of the brands that spent with us during the first half being new logos to Sabio;Significant upfront commitments, including multi-million dollar political and advocacy insertion orders for campaigns running during the last half 2024; andThe most diversified vertical mix in Sabio’s history.

Management continues to anticipate a return to double-digit consolidated revenue growth in 2024, surpassing both 2023 and our record-setting 2022 mid-term election year. With a streamlined operating infrastructure, Sabio expects further improvements in operating leverage and Adjusted EBITDA1 profitability through the second half of 2024. Management plans to allocate its improved cash flows to strengthen working capital, through both debt repayment and increased cash reserves. Combined with the closing of a new, multi-year credit line which brings both increased liquidity and long-term stability to our balance sheet, these measures will enhance balance sheet flexibility as we capitalize on several near-term growth drivers, including a new programmatic Connected TV/OTT offering set to launch in the second half of the year.

Selected Financials

The tables below set out selected financial information relating to Sabio and should be read in conjunction with Sabio’s condensed interim consolidated financial statements, including the notes thereto, and MD&A for the three months ended June 30, 2024, and June 30, 2023, copies of which can be found under Sabio’s profile on SEDAR+ at www.sedarplus.ca.

For the three months ended

For the six months ended

June 30, 2024

June 30, 2023

June 30, 2024

June 30, 2023

$

$

$

$

Revenue

8,897,431

7,987,682

15,248,964

14,469,254

Gross profit

5,449,794

4,823,810

9,211,798

8,834,860

Gross margin

61 %

60 %

60 %

61 %

Adjusted EBITDA(1)

(281,774)

(1,724,781)

(1,590,558)

(3,945,785)

Net increase in cash and cash
equivalents during the period

(679,723)

(1,584,537)

(971,839)

(2,291,508)

Cash and cash equivalents – end of
the period

1,640,273

1,707,894

1,640,273

1,707,894

For the three months ended

For the six months ended

June 30, 2024

June 30, 2023

June 30, 2024

June 30, 2023

$

$

$

$

Income (Loss) for the period

(1,042,929)

(2,378,891)

(3,055,036)

(5,158,539)

Finance Costs

313,482

241,027

627,828

411,508

Interest earned

(16,972)

–

(25,064)

–

Amortization of intangible Assets

 49,8174

35,825

101,021

72,965

Stock-based compensation

58,145

176,535

104,322

322,423

Amortization of lease

179,551

141,017

359,103

261,862

Income taxes

12,830

3,664

24,779

10,967

Foreign exchange differences

5,284

–

7,327

–

State and local taxes

9,480

12,647

29,348

44,648

Severance expenses

149,481

43,395

235,814

88,381

Adjusted EBITDA

(281,774)

(1,724,781)

(1,590,558)

(3,945,785)

1 See “Use of Non-IFRS Measures” below

The financial disclosures in this news release are subject to a number of cautionary statements, assumptions, contingencies and risks as set forth in this news release. The foregoing outlook and expectations constitute forward-looking statements and financial outlook and are qualified in their entirety by the “Forward-Looking Statements” cautionary statement below. Readers are cautioned that this release is for information purposes only and may not be appropriate for other purposes.

Conference Call:

The Company will release its financial results for the second quarter in a press release prior to the investor conference call.

The webinar details are below:

Webinar Details

Date: Thursday, August 22, 2024
Time: 9:00 a.m. ET (6:00 a.m. PT)
Webinar Registration:
https://bit.ly/3LWdx9d  
Or dial:
For higher quality, dial a number based on your current location.

Canada:

+1 647 374 4685 (Toronto local)

+1 778 907 2071 (Vancouver local)

Webinar ID: 826 4911 1596

International numbers available: https://us02web.zoom.us/u/kbmWagiHz6

Please connect five minutes prior to the conference call to ensure time for any software download that may be required.

About Sabio

Sabio Holdings (TSXV: SBIO, OTCQB: SABOF) is a technology and services leader in the fast-growing ad-supported streaming space. Its cloud-based, end-to-end technology stack works with top blue chip, global brands and the agencies that represent them to reach, engage and validate streaming audiences. Sabio Holdings’ companies consist of Sabio – a demand-side platform (DSP) powered through our proprietary ad-serving technology; App Science™ – a non-cookie-based software as a service (SAAS) analytics and insights platform with AI natural language capabilities; and Sabio SSP (formerly known as Vidillion); – an ad-supported streaming supply-side platform (SSP) that includes server-side ad-insertion (SSAI) technology.

For more information, visit: sabioholding.com.

Use of Non-IFRS Measures

This press release makes reference to certain non-IFRS (International Financial Reporting Standards) measures including, but not limited to, Adjusted EBITDA. These measures do not have a standardized meaning prescribed by IFRS and therefore they may not be comparable to similarly titled measures presented by other companies and should not be considered in isolation nor as a substitute for analysis of financial information reported under IFRS. Rather, these non-IFRS measures are provided as additional information to complement IFRS measures by providing a further understanding of operations from management’s perspective.

Management uses adjusted earnings before interest, income taxes, depreciation, and amortization (“Adjusted EBITDA”) as a key financial metric to evaluate Sabio’s operating performance as a complement to results provided in accordance with IFRS. The term “Adjusted EBITDA”, as defined by management, refers to net income (loss) before adjusting earnings for finance costs, income taxes, stock-based compensation, amortization, non-recurring items, and severance costs.  Refer to reconciliation to Adjusted EBITDA in the Company’s MD&A for the three months ended June 30, 2024 and June 30, 2023, copies of which can be found under Sabio Holdings Inc.’s profile on SEDAR Plus at www.sedarplus.ca.

Management believes that the items excluded from Adjusted EBITDA are not connected to and do not represent the operating performance of Sabio. Management believes that Adjusted EBITDA is useful supplemental information as it provides an indication of the results generated by Sabio’s main business activities prior to taking into consideration how those activities are financed and taxed as well as expenses related to stock-based compensation, depreciation, amortization, restructuring costs, other expense (income), and foreign exchange (gain) loss. Accordingly, management believes that this measure may also be useful to investors in enhancing their understanding of Sabio’s operating performance. It is a key measure used by Sabio’s management and board of directors to understand and evaluate Sabio’s operating performance, to prepare annual budgets, and to help develop operating plans.

Forward-Looking Statements

This press release may contain certain forward-looking information and statements (“forward-looking information”) within the meaning of applicable Canadian securities legislation, which is often, but not always, identified by the use of words such as “believes,” “anticipates,” “plans,” “intends,” “will,” “should,” “expects,” “continue,” “estimate,” “forecasts,” or the negative thereof and other similar expressions. All statements herein other than statements of historical fact constitute forward-looking information, including but not limited to statements in respect of: the Company’s operations, growth, market share, sales expectations, and business plans; results, including sales, expenses, and customer retention, of the Connected TV/OTT sales; positive adjusted EBITDA, and profitability in 2024; the Company’s outlook for the remainder of fiscal 2024, and balance sheet and cash flow management; and the effects of the upfront commitments. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements. The Company undertakes no obligation to comment on analyses, expectations, or statements made by third parties in respect of the Company, its securities, or financial or operating results (as applicable). Although the Company believes that the expectations reflected in forward-looking information in this press release are reasonable, such forward-looking information has been based on expectations, factors, and assumptions concerning future events that may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond the Company’s control, including the effect of the macro-economic environment adversely impacting the Company’s business more than anticipated, unexpected funding and cash flow management difficulties, and the other risk factors disclosed in the Company’s filing statement and management’s discussion and analysis (MD&A), which are  publicly available on SEDAR Plus at www.sedarplus.ca. The Company has assumed that the material factors referred to herein will not cause such forward-looking statements and information to differ materially from actual results or events. However, there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. The forward-looking information contained in this press release is expressly qualified by this cautionary statement and is made as of the date hereof. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking information, whether as a result of new information, future events, or otherwise. 

This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 

For further information: Sajid Premji, Chief Financial Officer, investor@sabio.inc, Phone: 1.844.974.2662; Aideen McDermott, Investor Relations, investor@sabio.inc

SOURCE Sabio Inc.

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Monster Energy and Call of Duty® Take Over Cosm Los Angeles for Immersive Modern Warfare® 4 Launch Celebration

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16 minutes ago

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October 25, 2026

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Celebrities, athletes and creators came together for an action-packed night of gaming, immersive entertainment and exclusive experiences on Cosm’s massive Shared Reality Display. 

INGLEWOOD, Calif., Oct. 25, 2026 /PRNewswire/ — Monster Energy transformed Cosm Los Angeles into the ultimate gamer’s destination on Friday night as fans came together to celebrate the highly anticipated launch of Call of Duty®: Modern Warfare® 4 at an immersive event fueled by Monster Energy.

Set against Cosm’s spectacular 87-foot-diameter, 12K+ LED dome, the Monster Energy x Call of Duty celebration brought the action of one of gaming’s most anticipated franchises into the real world. Guests experienced live gameplay, special celebrity appearances, interactive activations, and real-life displays inspired by the game, including the Monster Energy Operator Skin, alongside a lineup of Polaris vehicles including the DAGOR, which is playable in Modern Warfare 4 – all in an electrifying atmosphere that blurred the lines between gaming and reality.

The event drew a guest list spanning entertainment, sports and gaming, including actors O’Shea Jackson Jr., Trevor Jackson and Khleo Thomas, who arrived by Slingshot, rapper Symba, social media star Lin Lamar (Pinkchyu), and Monster Energy UFC fighters Johnny Walker and Jalin Turner.

Guests lined up around the block for a jam-packed program, featuring a live edition of The Flank, hosted by ZooMaa and Ben Nissim, including an interview with Infinity Ward developer Jacky Reynolds and the reveal of the CDL Launch Invitational groups. Fans also got a closer look at Modern Warfare 4’s DMZ mode during a gameplay showcase led by Infinity Ward game designer Roman Spazafumo.

The gaming action continued with artists, athletes and gaming creators, including Jericho, Jaybroski, Tyler Rizzi, Johnny Walker and LAFC’s Denis Bouanga, facing off in two-versus-two matchups, while fans tested their own skills in king-of-the-hill rounds. Monster Energy’s skate team also took to the virtual battlefield, swapping their boards for controllers, with Ishod Wair, Filipe Mota and Elliot Sloan going head-to-head in a Modern Warfare 4 showdown.

“With Call of Duty, we’re always looking for ways to push the experience beyond the screen,” said Jordi Gayola, CMO of the Americas at Monster Energy. “Bringing this launch to Cosm gave us an incredible opportunity to put fans, athletes and creators right in the middle of the action. It’s about bringing our worlds together and creating the kind of unforgettable experience that only Monster Energy can deliver.”

Beyond the main gameplay, fans enjoyed exclusive merchandise giveaways and immersive experiences, while the Modern Warfare 4-themed experience extended to the menu, which featured Korean-inspired dishes including kimchi mandu, Korean corn cheese nachos, and gochujang-glazed wings, alongside complimentary Monster Energy throughout the venue.

The launch also spotlighted Monster Energy’s ongoing Call of Duty promotional partnership, running through March 31, 2027. Fans can earn 15 minutes of Double XP per qualifying Monster Energy Original Green, Zero Sugar or Zero Ultra can, alongside exclusive in-game rewards, including a Large Decal, two weapon blueprints and two Operator Skins unlocked across the first five cans. The collaboration also extends beyond the game through four Monster Energy x Polaris vehicle sweepstakes at participating 7-Eleven, Hy-Vee, QuikTrip and RTG stores, with entry via retailer-specific QR codes in-store.

For more information on the Monster Energy x Call of Duty partnership, promotion and rewards, visit callofduty.monsterenergy.com.

Images from the Monster Energy Call of Duty®: Modern Warfare® 4 Launch Day are available HERE. 

Photo Credit: Randy Shropshire/Getty Images for Monster Energy.

About Monster Energy
Based in Corona, California, Monster Energy is a leading marketer of energy drinks and alternative beverages. Known for its connection to action sports, motorsports, music, gaming and athletes around the world, Monster Energy fuels the passions of its fans through products, partnerships and experiences that bring communities together. For more information, visit MonsterEnergy.com.

Media Contact:
press@monsterenergy.com 

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SOURCE Monster Energy

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Come Back to Firefox: Mozilla launches its most ambitious campaign yet to bring people back to the independent alternative to big tech browsers

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1 hour ago

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October 25, 2026

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As tracking and unwanted AI reshape the web, Firefox reunites the internet’s original viral icons to make the case for a browser that puts people back in control.

SAN FRANCISCO, Oct. 25, 2026 /PRNewswire/ — In its new campaign, Come Back to Firefox, the independent browser by Mozilla reunites personalities behind some of the early internet’s biggest viral videos and memes for one simple message: The internet you loved is still here, and Firefox is the easiest way back.

This multi-market campaign is aimed at people who once used Firefox and left. While it nods to the past, Firefox continues to evolve, giving people more reasons to love and rediscover it today. It arrives after a transformative year for the browser:

Business growth and partnerships: A dedicated Enterprise browser giving organizations expert support and control over their data. Technical partnerships with NVIDIA and Mistral, extending what Firefox can do from gaming to AI.

Increased protection and control: New products and features shipped including a free built-in VPN to help keep browsing private, with no extra download or cost. AI Controls, to let people decide when and whether to use AI, and an Ad Blocker for Firefox on iOS for fewer ads and trackers.

Brand and culture: A new modern design, a first sports partnership with Wrexham AFC and World Cup presence connecting Firefox to one of the year’s biggest cultural moments.

“Firefox was there then, we’re here now, and what we stand for matters more than ever,” said John Solomon, Chief Marketing Officer at Mozilla. “People who left Firefox years ago will find a browser that’s more private and gives them more control, including over AI.”

The Campaign

Come Back to Firefox brings together some of the world’s most memorable internet icons: Numa Numa Guy, Bad Luck Brian, Overly Attached Girlfriend, Kelly of “Shoes” fame, Where the Hell Is Matt?, Annoying Orange, Apparently Kid, Tay Zonday, Chuck Testa, Success Kid, and Evolution of Dance. Each takes on a modern frustration with humor:

Overly Attached Girlfriend may have wanted to know everything about you, but your browser shouldn’t.Dancing Matt boogied all over the world, without any corporations tracking him or selling his personal data.And while Annoying Orange is still incredibly annoying, he’s not as annoying as forced AI features.

The campaign launches in the United States Sunday, October 25th, with two distinct 30-second commercials airing on NBC. Next, it rolls out in Germany, France, and the United Kingdom.

“Being on set was a reminder of why those moments mattered,” said Solomon. “Ordinary people making things on the internet that made it feel so surprising and fun, and that’s the feeling we wanted to bring back.”

The campaign was created by award-winning independent agency We Believers, and brought to life by directing collective Sunny Sixteen and production company nobodys. Together, they meticulously recreated each performance, look, and even the sets from the original videos, taking each internet personality back to where their story began.

“We wanted an idea that truly belongs to Firefox, a challenger browser that helped shape the internet’s golden years and stayed independent as Big Tech took over,” said Gustavo Lauria, Founder and CCO at We Believers.

The campaign is one of Firefox’s most ambitious yet but is rooted in what has always set the browser apart from Big Tech: its commitment to putting people before profits and giving them more control over their online experience. Now, Firefox says it’s never been a better time for people who once used the browser to take another look.

About Firefox

Firefox is a web browser developed by Mozilla, built to give people more choice and control over their online experience. With built-in tracking protection, customization options, and a commitment to an open internet, Firefox offers an alternative to browsers developed by the world’s largest technology companies. Learn more at firefox.com/welcomeback.

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SOURCE Mozilla

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Best AI Tools for Small Business Marketing (2026): CapCut Featured for Creating Professional Video and Visual Content by Expert Consumers

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October 25, 2026

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NEW YORK, Oct. 25, 2026 /PRNewswire/ — Expert Consumers has recognized CapCut in its 2026 coverage of the best AI tools for small business marketing, highlighting the platform’s collection of AI-powered features for creating and editing video, images, audio, and other visual content. The recognition reflects growing interest in tools that support practical marketing activities, including campaign development, promotional content production, and adapting creative assets for different digital channels.

Best AI Marketing Tools

Seedance 2.0 – an AI video generation model that creates videos from text prompts or imagesSeedream – an AI image generation model that creates high-quality visuals from text prompts

Small businesses face growing pressure to maintain an active digital presence while managing limited time and resources. From product photography and promotional videos to social media graphics and campaign materials, effective marketing depends on a steady supply of relevant, engaging content. Artificial intelligence is creating new ways to simplify these tasks and help businesses turn creative ideas into usable marketing assets.

CapCut provides a range of AI-assisted capabilities that support several stages of content production. These include prompt-based video generation, AI image creation, background removal, image expansion, music generation, and photo animation. For small businesses managing marketing internally, these functions offer options for developing creative assets without relying entirely on manual production processes.

AI Video Generation Supports Promotional Campaigns

Video is an important format for demonstrating products, explaining services, and introducing new offerings. Small businesses can use video across social media, websites, digital advertisements, and online product pages. Producing content regularly, however, can require considerable planning and editing.

CapCut’s Seedance 2.0 AI video generator offers a prompt-based approach to video creation. Users can describe a creative concept and generate video content that serves as a starting point for further editing.

For a small retailer preparing a product promotion, AI-generated video can help explore different visual approaches before a final concept is selected. A service provider could use the same process to develop ideas for an explainer or an introductory campaign.

Prompt-based generation can reduce the effort involved in developing initial concepts. Generated material still requires review to ensure the finished video accurately represents the business, communicates the intended message, and follows relevant brand guidelines.

AI Image Creation Helps Develop Marketing Materials

Visual content plays a central role in how businesses present products and services online. Promotional graphics, campaign imagery, and social media visuals need to communicate a clear message while maintaining a recognizable style.

CapCut’s Seedream AI image generator enables users to generate images from text prompts. The tool can support concept drafts, campaign planning, and experimentation with different visual directions before final assets are prepared.

For example, a small business planning a seasonal campaign could explore different visual themes and compositions during the early planning stage. These drafts can help establish a creative direction before additional time is spent refining the final materials.

CapCut’s GPT Image 2 provides another option for generating images from natural language instructions. The feature can support the development of promotional imagery, marketing graphics, and other visual assets.

AI image generation gives businesses more opportunities to test creative ideas during campaign development. However, generated images should be checked for visual errors, accurate product representation, and consistency with the intended brand identity before publication.

Image Editing Simplifies Content Preparation

Creating new marketing assets is only part of the production process. Existing photographs and graphics often need adjustments before they are suitable for different platforms.

CapCut’s AI background removal tool helps isolate subjects from their original backgrounds. This can simplify the preparation of product photographs, promotional graphics, and other images that require a different visual setting.

For a small retailer, background removal can make it easier to prepare product images for online listings or promotional materials. Separated subjects can be incorporated into new compositions without recreating the entire image.

The AI Image Extender addresses a separate challenge: adapting images to different dimensions. The tool generates additional visual content beyond an image’s original boundaries, helping users adjust compositions without relying entirely on cropping or stretching.

A campaign may require square graphics for social media, vertical visuals for mobile viewing, and horizontal banners for a website. Image expansion provides another option for adapting existing assets to those formats.

These editing capabilities can help reduce repetitive production work while supporting a more consistent presentation across marketing channels.

AI Audio and Photo Animation Expand Creative Options

Marketing content often combines visuals, movement, and sound. Music can establish a mood, support storytelling, and help create a more complete video presentation.

CapCut’s SeedMusic AI audio generator supports AI-assisted music creation based on prompts. The feature can help develop audio for promotional videos, product demonstrations, and social media content.

Generated music offers a starting point for matching audio to a campaign’s intended atmosphere. Before publication, businesses should review the output and confirm that the applicable usage terms cover the intended commercial application.

CapCut also provides a Photo-to-3D tool that transforms still images into more dynamic visual presentations. This capability can help repurpose existing photography for promotional videos, social posts, and digital campaigns.

For small businesses with an existing collection of product images, adding movement can provide another way to present familiar assets. The approach also expands the range of creative formats available without requiring every campaign to begin with new photography.

Connecting AI Tools to Everyday Marketing Workflows

The practical value of AI-powered creative tools depends on how effectively they address specific marketing needs. Small businesses do not necessarily need every available feature for every campaign. Selecting tools according to content requirements can help keep production focused.

A retailer might begin with Seedream to explore campaign concepts, then use GPT Image 2 to generate supporting visuals. Background removal can help prepare product photography, while AI Image Extender can adapt selected assets to different layouts. Seedance 2.0 can support video concept development, with SeedMusic offering an option for accompanying audio.

A service-based business might prioritize short promotional videos, explanatory graphics, and social media content instead. The same collection of tools can support different production requirements depending on the business model and campaign objectives.

Using AI does not remove the need for creative direction or quality control. Content should be checked for factual accuracy, appropriate product representation, brand consistency, and compliance with advertising requirements. Human review also helps ensure that generated assets serve a clear marketing purpose rather than adding unnecessary material to a campaign.

AI-Assisted Marketing for Small Businesses

Interest in the best AI tools for small business marketing reflects the need for practical ways to produce and adapt digital content. Businesses must balance the demand for regular campaign updates with the resources available for creative production.

Expert Consumers’ recognition of CapCut highlights the platform’s range of AI-assisted functions for video generation, image creation, editing, audio production, and photo animation. These capabilities offer small businesses several options for developing marketing materials across digital channels.

As AI becomes more integrated into content production, effective use will depend on matching the right tools to specific tasks. With clear campaign objectives, careful editing, and appropriate review, CapCut’s creative features can help businesses develop marketing assets while reducing some of the repetitive work involved in preparing content for publication.

Visit the Expert Consumers site for the full review.

About CapCut

CapCut is an AI-powered photo and video editing platform designed to make high-quality video creation accessible across devices. The platform supports creators, businesses, and everyday users with tools for video editing, AI video generation, captions, templates, audio, and visual editing. CapCut is available across mobile, web, desktop, and iPad experiences, helping users create, edit, and prepare video content for social media, marketing, education, and personal projects.

About Better Business Advice: Better Business Advice covers the news and strategies driving modern business success. The information provided by Better Business Advice does not, and is not intended to, constitute legal advice; instead, all information, content, and materials are for general informational purposes only. As an affiliate, Better Business Advice may earn commissions from services mentioned in the links provided.

View original content:https://www.prnewswire.com/news-releases/best-ai-tools-for-small-business-marketing-2026-capcut-featured-for-creating-professional-video-and-visual-content-by-expert-consumers-302918043.html

SOURCE ExpertConsumers.org

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