Consumers criticize AI-generated video ads as annoying and confusing, study finds

The rise of generative AI has brought innovative tools into the advertising world, but new research suggests that consumers are not entirely convinced by its impact. According to a study by NielsenIQ (NIQ), AI-generated video ads are often perceived negatively by viewers, being labeled as “annoying,” “boring,” and “confusing.” Even when these ads exhibit high production quality, they fail to resonate as deeply or memorably as traditionally crafted ads. This reveals a significant challenge for marketers eager to leverage AI in their campaigns: how to harness the technology effectively without alienating audiences.

One key finding of the NIQ study is the disconnect between the polished appearance of AI-generated ads and their actual impact on viewers. While AI can create visually striking content, it struggles to align with established memory structures and emotional triggers that conventional advertising often excels at. Interestingly, even low-quality AI ads managed to convey brand identity effectively, but they proved cognitively taxing for viewers. This created a sense of dissonance that detracted from the intended message and left audiences more distracted than engaged.

The study employed advanced methodologies, including eye tracking and implicit response time analysis, to better understand consumer reactions. The results highlighted that AI-generated content often clashes with viewer expectations, leading to a diminished sense of authenticity. This lack of authenticity can create a “negative halo effect,” where the perception of a brand suffers not just for the specific ad but across broader campaigns and messaging.

One of the most common complaints about AI-generated video ads is their “uncanny” feel. Consumers often notice peculiar elements, such as limited movement and unnatural facial expressions in actors, awkward editing rhythms, or an overly polished and shiny aesthetic. These flaws make the content feel artificial, further disrupting the connection between the brand and its audience. As NIQ’s research suggests, these issues contribute to viewers struggling to process what they’re watching, undermining the campaign’s overall message.

Recent controversies around AI-generated ads highlight the growing tension between innovation and consumer acceptance. For example, Toys R Us recently promoted the first brand film created using OpenAI’s text-to-video tool, Sora. Despite the technological achievement, the campaign faced criticism for lacking the emotional depth and relatability of traditional advertising. Similarly, Coca-Cola’s holiday commercials, also created with AI, sparked debates about their authenticity and effectiveness. The backlash has even led to negative descriptors like “slop” being associated with AI-generated assets.

Despite these challenges, AI does hold some potential strengths in advertising. The NIQ study noted that AI-generated content is effective at reinforcing brand associations on an implicit level. Even the least sophisticated AI ads strengthened the mental network of connections consumers make with a brand, ensuring some level of recognition and identity alignment. As AI tools evolve, these capabilities are expected to improve, potentially reducing the uncanny valley effect and delivering more relatable content.

However, for now, marketers may benefit from adopting a cautious approach to AI in advertising. Rather than using AI as a replacement for creative processes, brands could explore its utility in lower-risk applications such as brainstorming, storyboarding, and producing variations of existing campaigns. This allows for experimentation without risking the loss of authenticity or emotional resonance that consumers value.

The influx of investment into generative AI has been extraordinary, with agencies committing significant resources to integrate the technology into their workflows. Yet, the NIQ findings underscore a crucial point: the industry’s excitement about AI does not necessarily align with consumer sentiment. Brands and agencies must strike a balance between leveraging the power of AI and maintaining the trust and connection they’ve built with their audiences.

As marketers gather in Las Vegas next month for the Consumer Electronics Show, the topic of AI-generated ads is sure to be a hot-button issue. According to Ramon Melgarejo, president of strategic analytics and insights at NIQ, the research serves as a reminder that consumers are highly attuned to authenticity — both consciously and unconsciously. “Brands need to tread carefully when integrating AI-generated content into their advertising strategies,” Melgarejo emphasized, pointing to the nuanced challenges of aligning innovative technology with human perception.

Ultimately, the road ahead for AI in advertising is both promising and fraught with challenges. While the technology offers immense potential for efficiency and creativity, its application must be thoughtful and consumer-centric to avoid the pitfalls revealed by studies like NIQ’s. For marketers, the lesson is clear: innovation should enhance the brand’s story, not disrupt it.