Nielsen: Consumers find AI-generated advertising annoying, boring and confusing

Increasing adoption of AI-generated video advertising is facing significant consumer pushback, as revealed in new research highlighting a disconnect between industry enthusiasm and viewer reception.

Key findings: NielsenIQ’s comprehensive research demonstrates that consumers can readily identify AI-generated video advertisements and generally respond negatively to them.

• Viewers consistently describe AI-generated ads as more “annoying,” “boring,” and “confusing” compared to traditional advertising
• Even high-quality AI-generated content fails to create lasting impressions with viewers
• Low-quality AI advertisements, while successful at communicating brand associations, create cognitive strain for viewers

Technical analysis: The research employed multiple evaluation methods to assess consumer responses to AI-generated advertising content.

• NielsenIQ utilized surveys, eye tracking, and implicit response time measurements to gather data
• The study revealed that AI-generated content creates a “dissonance” in viewers’ minds
• Consumers demonstrated sensitivity to advertising authenticity at both conscious and subconscious levels

Brand impact: The use of AI-generated content in advertising campaigns may have unintended negative consequences for brands.

• AI-generated ads risk damaging brand authenticity, a crucial factor in marketing effectiveness
• The “negative halo effect” from AI-generated content could extend beyond individual campaigns
• Major brands like Coca-Cola and Toys R Us have already faced controversy over their AI-generated advertising content

Industry investment: Despite consumer skepticism, the marketing industry continues to make substantial investments in AI technology.

• Advertising agencies are committing hundreds of millions of dollars to develop AI capabilities
• Brands are increasingly incorporating AI-generated content into major campaigns
• The term “slop” has emerged as a negative descriptor for AI-generated creative content

Silver linings: The research reveals some positive aspects of AI-generated advertising, despite overall consumer resistance.

• AI effectively communicates intended brand associations, even in lower-quality executions
• The technology shows promise for early-stage creative development, including ideation and storyboarding
• Future improvements in AI technology may address current limitations in realism and viewer engagement

Looking ahead: While AI technology will likely continue to evolve and improve, current research suggests marketers should carefully consider their approach to AI-generated video content, potentially limiting its use to behind-the-scenes applications rather than customer-facing advertisements until the technology matures further and consumer acceptance grows.