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Can AI Advertising be the Real Thing?

12/1/2024

14 Comments

 
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by David Hagenbuch - professor of marketing at Messiah University -
​author of 
Honorable Influence - founder of Mindful Marketing 

Coca-Cola has a long history of very memorable holiday ads, from its iconic Coke-swigging Santa to the surprisingly peaceful polar bears. This year’s campaign seeks to capture similar feelings of goodwill, warmth, and cheer but with AI-generated output, which raises the question: Should the company that’s touted its product as the real thing for more than a century now be creating advertising that’s not?
 
Longer-tenured consumers like me remember Coca-Cola’s longstanding tagline “The Real Thing,” which the company leaned on heavily in the 1970s following its successful 1969 campaign, “Can’t Beat The Real Thing.” Actually, the company had articulated the theme even earlier, e.g., on painted signs in the 1940s.
 
The notion that Coke is the real thing, or the original cola, can be traced to the late 1800s: Coke came to market in 1886, 12 years before its archrival Pepsi, giving Coca-Cola not only first-mover advantage but the right to boast that any cola coming after it was a mere facsimile.
 
The word real hasn’t appeared in all the company’s advertising, yet Coca-Cola has always sought to position itself as authentic and genuine – distinct branding threads that have woven their way through the company’s varied promotion, particularly in its holiday ads.
 
For instance, the look of the Santa Claus character that many know and love is largely a Coca-Cola creation. In 1931, the company and D'Arcy Advertising Agency tapped Haddon Sundblom, a Michigan-born Illustrator, to create images of Santa Claus for the firm’s ads.

Before then, Santa Claus was often depicted as “everything from a tall gaunt man to a spooky-looking elf.” Sundblom, however, took inspiration from Clement Clark Moore's 1822 poem "A Visit From St. Nicholas" (aka “Twas the Night Before Christmas”) to transform Santa’s image into what’s typical today – “a warm, friendly, pleasantly plump and human Santa.” Such an inviting persona meshed seamlessly with Coca-Cola’s wholesome brand image and helped to further propagate its portrayal as the real thing.


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Beside his appealing personality, Sundblom Santa’s bright red hat and coat, their white trim, and his full white beard also placed him squarely on-brand in terms of colors, and the company used the holiday character heavily over the next several decades.
 
In 1993, Coca-Cola introduced another endearing creation – animated polar bears. Although the company had used a polar bear in a French print ad in 1922, the bears that Coca-Cola creator Ken Stewart designed in the early 1990s developed a much longer-lasting legacy.

In their first television commercial, about sixteen furry white polar bears, each holding a bottle of Coke, sat contently on the artic tundra, oohing and ahhing as they watched the aurora borealis (northern lights). Near the end of the 30-second spot, they sipped their sodas, smacked their lips, and let out one more collective ahh. The commercial culminated with a close-up of one particularly pleasant bear with plump cheeks and friendly eyes that seemed to smile for the camera as it held its frosty soda bottle high.
 
In another 90-second spot from around 2005, the bears crashed the Christmas party of a pack of penguins that were dancing to the Beach Boys’ holiday favorite “Little Saint Nick.” At first the penguins were startled, but after one of their chicks shared a bottle of Coke with a bear cub, everyone smiled and happily joined the festivities. Leave it to Coca-Cola to make even one of the world’s fiercest predators fit its brand.
 
Even as the polar bears’ popularity grew, in 1995 the company unfurled another memorable campaign called “Holidays are Coming” that featured a seemingly endless caravan of light-bedazzled and ornately decorated 18-wheel big rigs sporting Coca-Cola’s trademark script lettering and larger-than-life images of its affable Santa Claus.
 
The spectacular line of long haulers rolled down country roads to the chant of “holidays are coming,” lighting up forests and bridges as they passed and pleasantly surprising a variety of delighted onlookers. Although certain parts of these mid-1990s ads leveraged special effects, much of what viewers saw was real, including the people in the spots. 
 
Thirty years later, these “Holidays are Coming” ads are the inspiration for the company’s new AI-generated campaign, which carry the same name and decked-out trucks but haven’t engendered the same warm response as the original ads.
 

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Produced by three different AI studios, the three new AI-generated ads, have received some very frosty reviews. As the New York Times has reported, one critic called the ads “slop” that “ruins the Christmas spirit,” while another claimed the company has significantly lowered its standards with the “heartbreaking” campaign, and a third, Alan Hirsch, the creator of the animated TV show Gravity Falls, suggested Coca-Cola’s signature red represents “the blood of out-of-work artists.”     
 
So, why risk messing with a good thing and the Real Thing by using AI to produce the new ads? A main motivation was likely money, as Garrett Sloan writing for AdAge suggested: “Backers of the technology are excited about how it could bring more creative tools to more people, more cheaply.”
 
It’s easy to imagine that Coca-Cola’s original “Holidays are Coming” ads, with their elaborately decorated trucks, remote outdoor settings, and abundant special effects, were very expensive to produce – probably millions of dollars – and took a long time to script, schedule, shoot, and edit. Why shouldn’t the company leverage technology’s cutting edge to save time and trim expenses?
 
Asking that question seems to fly in the face of the conclusion of my last Mindful Marketing article, “Does Human Made Matter?” in which I deduced, Yes, it matters. So, why was AI use out-of-bounds a few weeks ago but in-play now?
 
While some suggest that AI shouldn’t be used for anything and others argue that all AI use is acceptable, I stand between the two extremes. I’m firmly in the middle but will lean a little closer to one side or the other based on the efficacy of the application and the ethics of the situation.
 
As the last Mindful Marketing article suggested, many value originality in art and appreciate a sense of personal connection with the art’s creator, such as ones stemming from shared life experiences. Human connections and true originality are both things that are difficult if not impossible for AI to replicate.
 
On the other hand, most people probably don’t mind if AI generated a promotional email they received or was used to create a billboard they read.
 
The ultimate purpose of most advertising is to sell products, so although advertising is part science and part art, it doesn’t have the same thresholds for originality and personal connection as pure art does. Most people probably feel a deeper human connection with a favorite painting or song than they do with a Coca-Cola promotional piece. The notion that there’s a different standard for commercial content opens the door for AI use in advertising.
 
Someone who sees firsthand the effective and ethical use that marketing can make of AI is Matt Caylor, Account Director with Martin Communications, Inc., located near Harrisburg, PA. While he warns against blindly accepting AI output, which can be dangerous because it’s not always correct, Caylor also has experienced many productive uses of the technology including copy iteration, data analysis, and design assistance, as he explains:
 
“The technology can save time in editing and design, taking some of the mundane or tedious work off our plates. It can work as a partner in the initial iteration of messaging, often acting as an agent to bounce ideas off. It can be an agile assistant that reviews and analyzes large data sets, crunches numbers, or helps develop new queries.”
 
Does human input matter to Caylor and others at Martin Communications? It surely does, and like many others working in marketing, Caylor and his colleagues are continually learning how to effectively integrate their own insights with the technology tools – just as humans have done for millennia.
 
So, does it matter if Coca-Cola’s “Holidays are Coming” ads aren’t the Real Thing. Yes and no.
 
It matters in that consumers’ perceptions, whether correct or not, are their reality. For instance, some viewers seem to believe that all the people in the ads are AI-generated, even though Pratik Thakar, Coca-Cola’s VP and global head of generative AI, says at least some are not. Still, when people perceive a little AI in an ad, their tendency is to extrapolate that everything in it is AI.
 
On the other hand, Coca-Cola is only doing what Caylor and individuals in many other fields do each day – use AI selectively and responsibly to leverage their own time and talents. As Thakar explains: “Our human creatives make decisions and use AI as a tool.”

There’s nothing inherently wrong with Coca-Cola’s using AI as a tool to help create its new “Holidays are Coming” ads. However, given individuals’ current impressions of AI, because people have special expectations for authenticity around the Holidays, and since Coca-Cola has built a reputation for realism, the company’s AI use in the ads may have been too much too soon, or a case of Simple-Minded Marketing.


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14 Comments
Clayton Holmes
12/2/2024 10:10:59 am

A fascinating thought exercise, especially in current times where Coca Cola is already under fire for their lack of authenticity in their ingredients list. One PR crisis at a time, folks!

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Telkom University link
12/18/2024 09:46:08 am

How does AI-driven advertising differ from traditional advertising methods?

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Sierra Reinford
2/4/2025 08:01:50 pm

I just wonder what was going through the firm's mind's when they decided this would be the best way for them to market for the holidays. It feels like the humanity of their brand has been stripped away and their approach to the holidays is cheap and not genuine, which contradicts their long-time-standing vision of being the real thing. Maybe at a different time and in a different way an AI generated ad could have done really well for them, but I feel like Christmas, a holiday that almost seems to the celebrate joy and goodness of humanity was not the right time to air an AI generated ad. I also feel like they jumped too fast and too soon into the world of AI generated ads as a lot of society has still not figured out where they stand on their values of AI generated advertisements.

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Calli
2/5/2025 08:39:52 pm

I agree with your "in the middle" stance. While AI defiantly has a place in our society, I think ads tend to look better and feel more authentic when real actors or animation is used. AI tends too look the same and inevitably another company will use it for their ads. I think if we continue to use AI like this, it is just going to regurgitate the same thing just with different colors and a different brand name. It takes the creativity and authenticity out of ads, and steals the job of a true artist.

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Megan
2/5/2025 10:55:14 pm

I don't see this as a very good use of company resources. The bottom line with using AI in specifically the entertainment and promotional industries is that the companies are taking people's jobs away. In the Coke ads alone they have eliminated the need for actors, writers, and even editors in order to create these commercials. My PR brain immediately thinks that this is not a good look for Coke, especially during the holiday season. To be putting out in-genuine advertisements that stripped many of their jobs is not something your company wants to be known for. That is pretty much the equivalent of Frank Shirley cutting Clark Griswold's Christmas bonus without telling him.

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Ashlyn Shaak
2/6/2025 10:02:40 am

I agree with the stance that you took on the fact that you agree and disagree with Coca-Cola's use of AI. The idea of seeing an authentic ad in the future in a world full of AI generated ones, would be a nice change. Although AI is cheaper and helps with many aspects of making an advertisement, nothing can beat a real life ad that makes the consumer feel more connected to. AI is a fake world that no one can truly relate to, so why take the connection that you have made with consumers over the years and throw it away with AI. Coca-Cola is known for the "real thing", so they should not take that "real thing" aspect away from their ads.

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Avery
2/6/2025 11:13:41 am

I feel like using AI was not that big of a deal. It was probably smart. I think they got so much push back because they are one of the first companies to use it. As time goes on I am sure more and more companies will use AI.

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Lesley
2/23/2025 12:57:19 am

I understand how the use of AI can seem ingenuine as there is no human connection to the holiday ad. But I can also see why Coca-Cola would use AI as a way to lower the costs of producing an ad. In this situation, I am neutral because the use of AI can be beneficial to those who use it.

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Sam Ramos
2/23/2025 10:08:16 pm

I appreciated the insight that was provided on the use of AI in marketing as it is becoming more and more relevant. I understand the outrage that Coca Cola experienced because of this, but in this instance, it reminds me less of a case study on AI, and more of an instance where Coke messed with a "classic." To me, this scenario is similar to when Disney started introducing "live action" remakes of their original classics. Of course fans were upset, similar to the Coca Cola ads, because they took something "classic" and "timeless" and updated it for a modern audience.

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Matt Germann
2/23/2025 11:57:59 pm

As I was reading through this article, leading up to the point where you introduced it in your explanation of the new AI ads' failures, the number one thing on my mind was the human factor. "Human connections and true originality are both things that are difficult if not impossible for AI to replicate"—I think this is quite true, and is certainly worth exploring given that AI is still continuing to improve. In years past, particularly when AI was really beginning to make its rising debut (and especially around the time ChatGPT was first launched), I would have many friends ask me whether or not I was concerned about getting a job in the field of Computer Science as a Software Development major. However, to present some of my takeaways from this article, I think that people not only still crave human interaction and genuinity too much to be worried about that (especially in a post-COVID-19 world), but many are also very hesitant towards Artificial Intelligence in general. Not to say that AI isn't an amazing technological advancement with enormous potential and benefits, especially in my field of study among others, but even my own peers within the realm of Computer Science have openly admitted hesitations about where it is headed and in what ways it is being utilized. As evidenced by Coca-Cola's implementation of its capabilities, how it is and will be used in the future are certainly reasonable considerations. Short of writing my own article in the comments I will relinquish myself haha, but I think there is definitely a lot of truth here and a lot to unpack with regards to Artificial Intelligence.

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victoria
2/24/2025 01:23:41 am

As a graphic design and marketing student, it is always interesting to see the relevance of AI continue to grow. More & more people are using sources like ChatGPT for marketing, social media and design purposes. For Coca-Cola specifically I find it somewhat disappointing to see their use of AI. This brand was looked at heavily in the marketing world, due to how they marketed their product in the beginning.

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Henry Hagedorn
2/24/2025 10:38:44 am

I believe that it does matter if Coca-cola uses AI to generate their advertisements while they pride themselves on using, "its the real thing." This is mainly because although they can cut costs and boost profits through utilizing AI to make their advertisements, I view marketing as a task that is man made, utilizing and incorporating real feelings of emotion. These AI generated advertisements are totally made up and unnatural. No matter how much of it looks real, the truth is none of it is. With that being siad, I believe this marketing strategy is Simple Minded since yes it creates stakeholder value, but contradicts itself and doesn't uphold their societal values.,

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Logan T
2/24/2025 11:32:05 am

This is a timely thought experiment as brands like Coca-Cola face backlash over transparency in their ingredients. The controversy highlights the growing demand for authenticity in marketing and whether companies uphold true ethical values or just craft strategic narratives.

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24kbet link
5/2/2025 01:05:07 am

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