AI-generated video ads may be a hot topic among marketers, but consumer reception tells a different story. According to recent research by NielsenIQ (NIQ), these ads are often perceived as “annoying,” “boring,” and “confusing,” even when they are polished and high-quality. The findings highlight a critical gap between the capabilities of generative AI and consumer expectations.
The Trouble With AI Ads
NIQ’s research, using tools like eye tracking and implicit response analysis, reveals that even the most refined AI-generated ads fail to resonate as deeply as traditionally created content. While such ads can effectively communicate brand associations, they tend to be cognitively taxing, distracting viewers from the intended message and leaving a less memorable impression.
The authenticity problem is another concern. Consumers are sensitive to the perceived authenticity of advertising, and AI-generated content risks creating a “negative halo effect” that damages brand trust. This issue has been exemplified by high-profile campaigns, like Coke’s recent holiday AI ads and a Toys R Us campaign that used OpenAI’s text-to-video tool, Sora, both of which faced backlash.
The “Uncanny Valley” Effect
One recurring problem with AI-generated ads is their unsettling visual and narrative quality. Actors often appear stiff, facial expressions lack nuance, and the overall rhythm and editing feel off, contributing to an uncanny valley effect. Combined with the distinctive “shiny” aesthetic of AI visuals, these ads can alienate viewers rather than engage them.
Room for Improvement
Despite these challenges, AI has its advantages. The NIQ study found that even low-quality AI ads successfully strengthened brand associations and conveyed brand identity. As AI tools become more sophisticated, marketers may be able to overcome current limitations, making AI-generated ads more realistic and less distracting.
For now, however, marketers might benefit from focusing on less risky applications of generative AI, such as ideation, storyboarding, or creating multiple versions of creative content. As Ramon Melgarejo, president of strategic analytics and insights at NIQ, advises, “Brands need to be cautious as our study reveals that consumers are highly sensitive to the authenticity of ad creatives.”
While AI in advertising holds significant potential, these findings underscore the need for a measured, thoughtful approach to avoid undermining brand trust and consumer engagement.