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More and more content on the Internet comes from artificial intelligence. But caution is advised when it comes to AI-generated advertising, according to a recent study. Because consumers find them more “annoying” than conventional advertising.
Digital advertising has become increasingly important in recent years. In Germany alone in 2023 around 13.4 billion euros spent on online advertising, over a million euros more than in the previous year.
According to forecasts Global advertising spending could even total an estimated 1.3 trillion euros by 2029. However, advertisers should be cautious about AI-generated advertising, such as one new study by the market research company NielsenIQ (NIQ) shows.
Consumers reject AI-generated advertising
For their study, NIQ researchers showed AI-generated commercials to over 2,000 test subjects. The commercials had different levels of quality.
The scientists measured the brain activity of around 150 test subjects using an electroencephalogram (EEG). Feedback on the commercials was then collected in a survey.
The results of the study will be particularly exciting for advertisers. Because consumers were able to intuitively identify the AI-generated content.
They found them less appealing. AI advertising was even perceived as more “annoying,” “boring,” and “confusing” than traditional ads.
According to NIQ, this could indicate that AI-generated advertising is causing a negative halo effect. This could have negative effects on the perception of the advertising and the brand itself.
Advantages and disadvantages of AI ads
“Our study shows that consumers are very sensitive to the authenticity of advertising, both at an implicit (unconscious) and explicit (conscious) level,” explains Ramon Melgarejo, President, Strategic Analytics & Insights at NIQ.
Brands must prioritize insight-driven creative evaluation to produce effective advertising.
The research also showed that AI-generated advertising triggers weaker memory activation in the brain compared to traditional ones. This was observed regardless of the quality of the advertisements and also occurred with those that were perceived as “high quality”.
Low-quality images in AI-generated ads also result in increased cognitive effort. This distracts from the intended message.
But AI-generated ads can also have advantages. Existing brand associations can be successfully strengthened by using existing visual and conceptual representations. In this context, however, NIQ also warns that this advantage is outweighed by the negative halo effect.
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As a Tech Industry expert, I believe that AI-generated advertising can be both annoying and confusing for consumers. While AI technology has the potential to effectively target and personalize ads, it often misses the mark and bombards users with irrelevant or repetitive content. This can lead to frustration and a negative perception of the brand.
Additionally, the use of AI in advertising can be confusing for consumers who may not fully understand how their data is being collected and used to tailor ads to their preferences. This lack of transparency can erode trust and make individuals more wary of engaging with AI-generated ads.
Overall, it is important for companies to carefully consider the impact of AI-generated advertising on their target audience and ensure that it enhances the user experience rather than detracts from it. Transparency, relevance, and respect for consumer privacy are key factors in ensuring that AI-powered ads are well received by the public.
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