When AI Crafts Ads, Are Viewers Checked Out?

Generative AI (GAI) in advertising is drawing attention, but not always the kind brands want. A NielsenIQ study, incorporating EEG scans of 150 participants and surveys of over 2,000 individuals, found that AI-generated ads often fail to engage viewers. Consumers frequently identified these ads as “annoying,” “boring,” or “confusing,” which adversely impacts brand recall and trust. The study attributes this to a lack of alignment between AI-generated content and the brain's existing memory structures, causing viewers to feel something was “off.” Still, these ads reinforced brand identity, showing potential even amidst skepticism.

A second study, by IAB and Sonata Insights, highlighted generational divides on GAI ads. While 60% of ad executives are optimistic about AI’s role in innovation and efficiency, only 48% of Gen Z and Millennials view AI-created ads positively. Many younger consumers perceive brands using GAI as “inauthentic” or “unethical.” Disclosure emerged as a contentious issue—31% of respondents said transparency about AI involvement could increase their trust, but nearly as many would trust brands less if AI’s role was clear. This reflects a complex balance between the allure of new tech and the risk of alienating audiences.

The bottom line for advertisers? GAI holds promise but demands careful execution. Emphasizing creative rigor, transparent practices, and understanding consumer sentiment will be vital to reaping AI’s benefits while maintaining trust.

Full story at MediaPost.