Incumbent brands often face backlash for using AI in ads for 'sacred' campaigns, as audiences have strong expectations. Challenger brands, however, can leverage AI to create novel, surprising content that defines their image without violating established norms.

Related Insights

The true power of AI in marketing is not generating more content, but improving its quality and effectiveness. Marketers should focus on using AI—trained on their own historical performance data—to create content that better persuades consumers and builds the brand, rather than simply adding to the noise.

As more teams use AI, campaign strategies become homogenized because AI suggests traditional plays based on existing data. The key differentiator becomes human oversight, where marketers add unique, creative insights to AI-generated foundations, ensuring campaigns stand out.

AI in creative doesn't have to dilute a brand. Coca-Cola's successful holiday ad used AI, but its high brand recall (83%) was driven by focusing on iconic assets like Santa. The AI execution was effective because it was largely invisible, proving the creative idea still drives the ad, not the tech.

Higgsfield's CEO notes a key trend: the best-performing AI-generated ads don't try to pass as real. They lean into a distinct AI aesthetic, suggesting that audiences are not only accepting but are also engaged by this new visual style, prioritizing creativity over photorealism.

As audiences grow tired of generic, low-effort AI content, brands can gain a competitive advantage. Focusing on authentic, human-driven, and even imperfect content will become a key differentiator and a core growth tactic in a saturated digital landscape.

While media coverage suggests public disdain for AI-generated ads, Coca-Cola's consumer data shows high approval scores. This highlights a critical gap between the sentiment of a threatened media industry and actual consumer behavior, suggesting audiences care more about the final product than its AI origin.

Generative AI changes brand discovery from a budget-driven game to one based on relevance, credibility, and usefulness. This levels the playing field, allowing smaller, more agile brands to compete with larger incumbents who traditionally relied on massive ad budgets.

To prevent audience pushback against AI-generated ads, frame them as over-the-top, comedy-first productions similar to Super Bowl commercials. When people are laughing at the absurdity, they are less likely to criticize the technology or worry about its impact on creative jobs.

While AI video tools can generate visually interesting ads cheaply and capture views, they currently lack the authentic creative spark needed for true brand building. Their value lies in quick, low-cost content, making them a performance marketing tool rather than an asset for creating a lasting, memorable brand identity.

As AI tools become commoditized, the exponential differentiator for marketing success will be subjective taste. Teams must double down on unscalable, creative elements that AI cannot replicate, as this is what will truly stand out and build a memorable brand.