Two of the world’s most iconic marketers tried to automate holiday magic — and sparked a consumer backlash instead.
- Last month, Coca-Cola launched an AI ad for its holiday campaign, “Holidays are coming.”
- McDonald’s aimed to talk about a stress-free Christmas with the title “The most terrible time of the year,” but fell short of igniting any excitement.
- In the comments on Coca-Cola’s official YouTube video for the ad, users have called it “soulless AI” and a sloppy ad.
The rise of artificial intelligence (AI) is to make things easier for the human race, make everything accessible at a fingertip, automate tedious tasks, and ensure it’s a tool available for all for anything. As expected, companies have also started using AI not just to boost internal productivity, but also to generate advertisements and marketing strategies that save them time and enable them to act on short notice or capitalize on trends.
But for McDonald’s and Coca-Cola, all did not go well. An unexpected backlash over AI-generated videos has now put these companies under an unenviable spotlight. Both food giants are known for creating heartwarming advertisements that linger with consumers and tug at their emotions, prompting an instant purchase of a Coke or a burger. Their latest forays, however, appear to have boomeranged.
Coca-Cola’s AI Ad
The soda giant is known for one of its most famous 2015 marketing campaigns, with the tagline “Happiness starts with a smile,” alongside several advertisements that have always resonated strongly with consumers.
And how can one forget their iconic “Hilltop Commercial” with the famous jingle, “I'd like to buy the world a Coke,” which received more than 100,000 letters praising the ad and flooded radio stations across the country with requests for the song, according to Coca-Cola. It also featured famously in the series finale of the hit American TV series, “Mad Men.”
But the giant that got the emotions right fell into soup for using an AI-generated advertisement for the holidays, a time of year when people usually look for warm, good-feeling movies and places.
Last month, Coca-Cola launched an AI ad for its holiday campaign, “Holidays are coming.” However, YouTube users were not pleased and noted that they missed the pre-AI internet. In the comments on Coca-Cola’s official YouTube video for the ad, users have called it “soulless AI” and a sloppy ad.
One user said Coca-Cola had “enough money to pay any artist and give them the opportunity of a lifetime … but ai slop sounded more appealing somehow.”
McDonald’s AI Ad Leads To Pullback
Following suit, the burger giant went all out to produce an advertisement for the holidays as well. They aimed to talk about a stress-free Christmas under the title “The most terrible time of the year,” but fell short of igniting any excitement and instead faced backlash for dampening the Christmas spirit.
The ad shows Santa stuck in traffic, carolers singing in freezing temperatures, and gift-shopping chaos, with McDonald’s at the end asking everyone to turn to its restaurants to relax until January. A user on X said that McDonald's ad had the wrong design and that the company could have focused “on the holidays being chaotic instead of the worst.”
Users on X, YouTube and Instagram were unhappy with the way the holidays were represented and expressed their disinterest in the burger giant.
According to a report by The Guardian, McDonald’s Netherlands noted that the Christmas commercial was intended to show the stressful moments during the holidays in the Netherlands. “However, we notice – based on the social comments and international media coverage – that for many guests this period is ‘the most wonderful time of the year’,” it said.
McDonald’s has been praised several times for doing advertisements that kept consumers hooked. From “I’m lovin’ it” to “Nobody can do it like McDonald’s can” were positively received. AI, as the driving force, has also irked many users, who noted that this would compromise art as a skill. The company has reportedly taken down the advertisement after the widespread criticism.
What Is Retail Thinking?
Retail sentiment on McDonald’s was in the ‘bearish’ territory, compared to the ‘bullish’ six months ago, with message volumes currently at ‘high’ levels, according to data from Stocktwits.
Sentiment on Coca-Cola, meanwhile, jumped to ‘extremely bullish’ from ‘bearish’ territory six months after the soda giant named a new CEO last week.
Shares of McDonald’s have gained over 9% this year, building on its momentum from offering value meals, which have helped attract customers looking to eat on a tight budget from outside. Coca-Cola’s shares have jumped over 13% year-to-date, benefiting from its new launches and strong demand for its milk brand Fairlife.
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