If your marketing team is using AI-generated ads, it might be time to reconsider the way that strategy is applied. Recent research from NielsenIQ (NIQ) reveals that AI isn’t quite the golden goose that some were hoping it would be. Although AI is handy for streamlining menial tasks and even supporting innovative idea generation, it is not without its unique challenges.
Here are some of the highlights from NIQ’s research on the consumer perception of AI-generated ads.
The “Negative Halo” Risk
Despite the efficiency AI has brought into marketing, advertisers are having to consider implementing AI at the cost of several risks. One such challenge revealed by NIQ is being referred to as the “negative halo effect.” Under this phenomenon, consumers who identify AI within an ad can start to perceive the brand in a negative way—suggesting that AI-generated ads can unintentionally harm the overall brand image.
NIQ’s research goes further, describing how viewers engage less with these ads and even associate them with negative traits such as “annoying” or “confusing.” Such perceptions regarding an ad can severely impact brand loyalty and consumer trust over time.
Lack of Emotional Connection
There are several potential reasons influencing the negative perceptions, which marketers should keep in mind before greenlighting the next AI-generated ad. One such reason is emotional disengagement as AI often lacks the ability to portray emotions in a way that fosters a human connection with audiences. This disconnect between AI and viewers can easily lead to annoyance.
Too Inauthentic
Many consumers can easily spot AI-generated content, and they are quick to view it as “inauthentic” or “unethical.” According to research from IAB, this is especially true for Gen Z consumers, who were also more likely to see these brands that heavily utilize AI as “fake.”
As marketers implement AI into their campaigns, it is best to blend it with human efforts and creativity to avoid annoying consumers, especially as the younger generation seems to be more critical of its usage.
Memory and Visual Challenges
Weak Memory Activation
Advertisements are meant to leave lasting impressions by activating consumers’ memory structures and aligning with their existing associations. However, NIQ’s research shows that AI isn’t as gifted in this area as traditional ads. They found that even when AI-generated ads were perceived as “high quality,” they still found the results for memory activation lacking.
“This reaction suggests a misalignment between the content and existing memory structures—a gap that could impede consumers’ motivation to act.”
NIQ Research on BusinesWire
Cognitively Taxing
High-quality visuals are a must for advertisements, and this is especially true for AI-generated ads as AI implementation in these ads can sometimes be low-quality. NIQ explains that low-quality AI-generated ads require more mental energy to process, taking attention away from the ad’s desired message.
Visuals are an important factor within storytelling, as they hold the brand’s message to stick with the viewer. This also requires a certain level of emotional resonance to create a connection with the consumer. A well-executed visual still requires human oversight instead of a total reliance on AI generation.
Balance AI with Care
While AI has introduced exciting possibilities for streamlining ad creation and supporting innovation, it is not without significant challenges that marketers must navigate carefully. AI can be a powerful tool for ideation and efficiency, but its limitations make it clear that it cannot replace the nuanced, emotional, and authentic touch that resonates with audiences.
