CHICAGO - Thursday, 12. December 2024 AETOSWire
New research to be formally presented at 2025 Consumer Electronics Show (CES)
(BUSINESS
WIRE)--As Gen AI continues to push the boundaries of creative
industries, NielsenIQ (NIQ), the world’s leading consumer intelligence
company, unveiled groundbreaking new research on how the consumer brain
processes AI-generated advertisements—with critical implications for
advertisers navigating the opportunities and challenges of this emerging
technology. NIQ will be speaking about these findings across
generational considerations at the CES 2025 panel session, Adapting to
Change: Demographic Shifts in Advertising Strategy on Thursday, January
9th at 10:00 a.m. PST.
Commenting on the findings, Ramon
Melgarejo, President, Strategic Analytics & Insights at NIQ, said:
“Brands and agencies are innovating at a rapid pace, leveraging
AI-generated content in their advertising. They need to be cautious, as
our study reveals that consumers are quite sensitive to the authenticity
of ad creatives, both at the implicit (nonconscious) and explicit
(conscious) levels. Brands must prioritize insights-led creative
evaluation to produce effective ads.”
Key research on AI-generated ads finds:
Negative brand halo
Consumers intuitively identified most of the AI-generated ads,
perceiving them as less engaging and more “annoying,” “boring,” and
“confusing” than traditional ads. These sentiments suggest that
AI-generated ads may create a negative halo effect that could dampen
consumer perceptions of both the ad and the brand.
Weak memory activation
AI-generated ads—even those perceived as “high quality”—elicited weaker
memory activation in the brain, compared to traditional ads. This
reaction suggests a misalignment between the content and existing memory
structures—a gap that could impede consumers’ motivation to act.
Brand reinforcement pros and cons
By drawing from pre-existing visual and conceptual representations,
AI-generated ads successfully reinforced existing brand associations.
Coupled with the negative halo effect, however, this benefit could be
outweighed by overall negative perceptions.
Cognitively taxing visuals
Low-quality visuals in AI-generated ads increase the cognitive effort
required to process them, distracting from the intended message.
High-quality execution is essential for effective storytelling and brand
communication.
A Transformative Trend
“As advertisers
experiment with generative AI to streamline ad creation and reduce
costs, this research provides critical guardrails,” said Marta
Cyhan-Bowles, Chief Communications Officer and Head of Global Marketing
at NIQ. “Our neuroscience-driven approach reveals how consumers
nonconsciously process AI-generated content and highlights the fine line
between innovation and discomfort.”
Cyhan-Bowles cautions that
while AI offers exciting potential for early-stage ideation and brand
asset testing, poorly executed AI content can harm brand equity.
Although this emerging technology may not immediately replace
traditional ad creation, its capabilities can still enhance creative
processes when thoughtfully integrated.
AI is also driving
marketing efficiencies in long-term consumer-focused product
development, offering deeper insights into customer preferences. It is
closing the gap between businesses and customers by enhancing the
understanding of consumer preferences. Groundbreaking tools like NIQ’s
Ad Explorer are helping marketers improve brand equity by leveraging
nonconscious consumer perceptions to prioritize creative insights, test
multiple ad iterations, and meet deadlines without sacrificing quality.
Read more about the detailed study here and stay informed on future developments in AI-generated advertising.
About NIQ
NielsenIQ
(NIQ) is the world’s leading consumer intelligence company, delivering
the most complete understanding of consumer buying behavior and
revealing new pathways to growth. NIQ combined with GfK in 2023,
bringing together the two industry leaders with unparalleled global
reach. Today NIQ has operations in more than 95 countries covering 97%
of GDP. With a holistic retail read and the most comprehensive consumer
insights—delivered with advanced analytics through state-of-the-art
platforms—NIQ delivers the Full View™.
For more information, please visit www.niq.com.
About NIQ Study
The
study involved more than 2,000 participants watching a series of low-
to high-quality AI-generated ads. Brain activity was measured using
electroencephalogram (EEG) for approximately 150 of those participants.
After viewing the ads, all participants were asked to share explicit
feedback via survey.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241212354811/en/
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Contacts
Sweta Patra
sweta.patra@nielseniq.com
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