What Marketers Should Take Away From Coca-Cola’s AI-Generated Ad Strategy
Posted on November 20, 2024 | Updated on November 22, 2024
The Coca-Cola AI ad series has caused quite a stir. While some people consider it innovative, others view it as deceptive. Either way, since Coca-Cola is a multinational billion-dollar company, its experimentation with generative AI will have far-reaching implications. What will this mean for marketing?
Coca-Cola Released AI-Generated Holiday Ads
Coca-Cola released a series of AI-generated holiday ads. While it has experimented with generative technology, this is the first time content creation has solely relied on AI.
Secret Santa
“Secret Santa” opens with squirrels, polar bears, and deer. Classic Coca-Cola trucks drive on snow-covered roads toward a small village, lighting up trees and houses along the way. Smiling families look on as a man cheerfully hands Santa Claus a glass bottle of Coke.
The Holiday Magic Is Coming
This Coca-Cola AI ad is the series’s shortest — and most recent — video. It opens like the others do, with an unseen figure using a bottle opener to crack open a Coke. Nature scenes, animals, and red trucks are the main focus. The trucks seemingly drive through different parts of the world, bringing Christmas lights and holiday cheer wherever they go.
Unexpected Santa
“Unexpected Santa” is particularly animal-heavy — it features what looks like reindeer, bunnies, ducks, monkeys, polar bears, cats, mice, owls, and dogs. Out of all of the videos, this has the most telltale signs of generative AI use.
Coca-Cola’s AI Ad Strategy May Have Backfired
According to some reports, the Coca-Cola AI ad series tested well with audiences. For instance, System1 — a United-States-based advertising company — claims it received a rating of 5.9 out of 6 stars, indicating the brand has a robust ability to generate demand. For reference, the average rating in the “soft drinks and water” category is 3 out of 6 stars.
System1 also used a face-tracking tool to measure viewers’ emotions while they watched the AI-generated Coca-Cola ad. It claims they all felt surprised — which, for the record, is not necessarily a positive thing — or happiness. However, it only showed metrics for a 16-second clip. For reference, the video is 78 seconds long.
System1 states 98% of viewers recognized the brand by the end of the ad — that’s what landed it 5.9 out of 6 stars — which, at first, seems impressive. However, there are no less than 13 shots prominently featuring the brand’s name throughout the video. Even if people weren’t familiar with the brand, they could make an educated guess.
Even putting this report aside, the public’s reaction seems mixed at best. One TikTok user described the results of generative AI use as “horrific,” stating they think it is “less festive” and “more creepy.” TikTok and YouTube commenters seem to agree — many have called the series “soulless,” “sinister,” “eerie,” and “creepy.”
Others think the backlash is unwarranted, with some viewers insisting no one would have recognized the use of generative AI if the video series hadn’t gone viral. Despite receiving some support, “Unexpected Santa” and “Secret Santa” are now unlisted on YouTube, meaning viewers can only watch the videos if they have the links.
Why The Public’s Reaction Was Largely Negative
While some supporters claim each Coca-Cola AI ad tested well, the social media outcry is widespread.
AI Artifacts Are Everywhere
AI artifacts — anomalies that indicate content was generated by AI — are sprinkled throughout each video. For instance, at the 18-second mark in “Unexpected Santa,” the three ducklings briefly morph into two as their legs fuse. Later, at the 23-second mark, ghost headlights follow one of the trucks.
Moments like these are blink-and-miss-it mistakes but add to the feeling of indescribable uncanniness. Even if people are unaware they are consuming AI-generated content, they likely subconsciously recognize how the tires move in the wrong direction, the monkeys have too many fingers, or the trucks shapeshift in the distance.
The Message Is Inauthentic
Each Coca-Cola AI ad featured the classic Christmas song it used in its iconic 1995 holiday commercial. Viewers were quick to point out the ironic line, “It’s always the real thing,” highlighting the hypocrisy of using a generative model to create fake people, cars, and animals. The tagline “real magic” also stirred some anger.
The Ads Parody Nostalgia
Coca-Cola AI ad series was inspired by the brand’s iconic 1995 commercial that saw light-covered trucks driving through snow-covered hills to deliver Coca-Cola to a beautifully decorated village. Many consider Coke the unofficial soft drink of Christmas. To them, having a generative model produce a distorted imitation of something they find so nostalgic is infuriating.
One TikTok user went as far as to say it “ruined Christmas and their entire brand.” He also pointed out that AI technically steals jobs. This preexisting controversy is a major driver for the far-reaching backlash. After all, Coca-Cola has even partnered with OpenAI, a company that infamously said it is impossible to train AI models “without using copyrighted materials.”
What This Means for the Future of AI in Marketing
Nonchalant AI use could tarnish Coca-Cola’s carefully constructed brand image. Unfortunately, generative technology is often considered the lazy, cheap alternative to genuine artistic creation since it requires no artists, sound designers, camera operators, or copywriters.
Andrew Tindall, senior vice president of partnerships, says the public backlash is temporary. He declared that people make split-second decisions based on emotions or memories when buying something, asserting that an ad’s true measure of success is how it makes people feel. In other words, he argues the outcry on social media will not have a measurable impact in the long term.
While Tindall insists AI use does not matter as long as the content connects with viewers, how are marketers supposed to tap into human emotions with content that is created by a machine? In many cases, the answer is to hide the use of generative technology.
A study from the University of Kansas discovered only 50% of AI-generated ads disclose their use of AI. Usually, this is an intentional choice to appeal to or positively influence consumers. Currently, content like this exists in a legal and ethical gray area.
That said, the United States Federal Trade Commission is already cracking down on deceptive, misleading, or unfair uses of AI with Operation AI Comply. It has already pursued legal action against multiple companies for violations. While its focus is not yet on AI in marketing, this level of public outcry could turn its attention this way.
What Marketers Should Take Away From This
Coca-Cola fumbled here, which is surprising considering it has seen significant success with generative AI before. Its aptly titled “Masterpiece” received praise for being creative, fun, and well-shot. Why was the public’s reaction so different? Undoubtedly, the human factor is the crucial missing aspect.
While the company used computer graphics, visual effects, rendering, and generative AI to create “Masterpiece,” humans were responsible for most of the video. They directed the cameras, did stunts, acted, and posed for references. AI was only used to adapt scenes to certain art styles.
Marketing professionals can see this same sentiment in the 1995 Coca-Cola commercial. People get stuck at intersections while trucks pass or are begged by their kids to buy something at the store. The cheery music and dazzling lights make these usually annoying, mundane situations lighthearted and even enjoyable. It captures the essence of Christmas.
Compared to the static, drone-style shots of a dog’s tail wagging or people smiling at something off-screen, the difference is clear. Viewers want to see their lives reflected in the commercial. At the same time, it must also inspire deeply-rooted — yet obtainable — desires. Who doesn’t want to be unbothered while sitting in traffic or share a nice moment with their children in public?
Tips for Integrating AI-Generated Content Into Ads
Marketing professionals can create successful AI-generated ads if they are strategic.
1. Ease Viewers’ Worries
Marketers must reconcile AI hype and fear. While some people are excited about this emerging technology, others worry it may take their jobs or ruin art. In other words, bragging about using generative AI to capitalize on the trend is in bad taste.
2. Always Disclose AI Use
The only video in Coca-Cola’s AI ad series that disclosed its AI use was “The Holiday Magic Is Coming,” which featured fine, white print stating “Created by Real Magic AI” in the bottom left-hand corner for just three seconds.
Not disclosing AI may seem the right choice since it theoretically reduces the risk of public outcry. However, it won’t take long for people to recognize telltale signs like AI artifacts. If word spreads this way, people may perceive the brand as untrustworthy or deceptive.
3. Balance AI and Human
Balancing AI and human involvement will reduce the fear many people have of AI replacing humans. Marketing professionals should emphasize how humans collaborate, framing generative technology as a tool or assistant rather than a revolutionary technology.
Marketing Professionals Should Proceed With Caution
AI is undoubtedly a powerful, innovative technology. However, it is also widely regarded as untrustworthy or frightening. While using it in marketing can be cost-effective, department leaders must be mindful of how the public might perceive their decisions.
About The Author
Cooper Adwin is the Assistant Editor of Designerly Magazine. With several years of experience as a social media manager for a design company, Cooper particularly enjoys focusing on social and design news and topics that help brands create a seamless social media presence. Outside of Designerly, you can find Cooper playing D&D with friends or curled up with his cat and a good book.