The Negative Ad That Made $60k in Sales for Crayo AI

In July 2024, popular YouTube commentator Drew Gooden created a video criticizing AI's impact on content creation.

The video's opening 10 seconds featured a Crayo AI advertisement, which unexpectedly generated $50,000-$60,000 in sales for the company, despite the negative context surrounding the video.

The Advertisement

The ad showed a simple scenario: A teenager making $21,000 monthly using their phone. The process involved:

• Recording streamer content from YouTube

• Using Crayo to edit gameplay footage

• Generating automated videos

The script in the video reads like this:

"day in the life of a lazy teenager who makes $21,000 a month using just his phone! the first thing i do when i go on my phone is open youtube. then, i search for any particular streamer, and i screen record their content. then i head to crayo.ai, select my gameplay, and it puts the whole video together for me. last month, this page alone made me $14,000! here's how i make $1 million every day as a 3-year-old toddler working from home: first, i look for a funny youtube video, preferably one with a lot of colors and..."

The ad concluded with an absurd claim about a "3-year-old toddler making $1 million daily," which caught viewers' attention through its obvious exaggeration.

The Unexpected Success

Despite Gooden's critical stance, his video reached #1 on YouTube's trending page and garnered 6.4 million views within 3 months. The exposure, even though negative, worked in Crayo's favor as viewers recognized the tool's potential usefulness.

Marketing Lesson

This case demonstrates the power of pattern interruption in advertising. Traditional ads typically start with praise and positive messaging. However, beginning with criticism or self-deprecation can be more effective because it:

• Breaks through typical advertising noise

• Creates genuine interest through unexpected messaging

• Appears more authentic than standard promotional content

The key is to present the negative aspect first while eventually revealing the solution. This approach differs from conventional marketing wisdom but can lead to better engagement and conversion rates as negative hooks perform better.

This strategy proves particularly effective because it avoids the standard promotional format that most viewers have learned to tune out. By starting with criticism, an ad can capture attention and deliver the message more effectively.

Top Tweets of the day

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Kids are early adopters of technology. Whatever they do eventually becomes mainstream due to network effects as kids share more new apps with their friends than adults.

It was true with Facebook, Instagram, and now TikTok.

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TikTok Shop days won't last much longer. Maybe 1 year tops before TikTok tries to recoup its money.

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Automated thumbnails for OG Images for $0.02 per image.

Rabbit Holes

1. How to Build a SaaS Factory - Ship 10x Faster by Simon Høiberg

2. Why Neeto is building so many products by Neeraj Singh

3. Why Ed-tech Startups Don't Scale by Gian Segato

Until next time!

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