NIQ Research Uncovers Consumer Insights on AI-Generated Ads

the global leader in consumer intelligence, has unveiled groundbreaking research on how the consumer brain processes AI-generated advertisements. This research has profound implications for advertisers as they navigate the opportunities and challenges posed by this rapidly evolving technology. These findings will be highlighted during the CES 2025 breakout session, “Adapting to Change: Demographic Transformations in Advertising Strategy,” on Thursday, January 9, at 10 a.m. PST.

“Our neuroscience-driven approach reveals how consumers unconsciously process AI-generated content and highlights the fine line between innovation and discomfort,” said Marta Cyhan-Bowles, Chief Communications Officer and Global Head of Marketing at NIQ.

Key Insights from the Study

Negative Brand Halo

The research indicates that consumers intuitively perceive most AI-generated ads as less engaging. Participants described these ads as “annoying,” “boring,” and “confusing” compared to traditional advertisements. These sentiments suggest that AI-generated ads may inadvertently create a negative halo effect, diminishing both the effectiveness of the advertisement and the overall perception of the brand.

Weak Memory Activation

Even when deemed “high quality,” AI-generated ads failed to elicit strong memory activation in the brain. This weaker response indicates a misalignment between the ad content and existing memory structures, potentially reducing the likelihood of motivating consumer action.

Brand Reinforcement: A Double-Edged Sword

While AI-generated ads successfully reinforced existing brand associations by leveraging preexisting visual and conceptual representations, this benefit often came with a downside. The negative halo effect frequently outweighed the advantages, highlighting the delicate balance required when integrating AI into advertising strategies.

Cognition-Demanding Images

Low-quality images in AI-generated ads were found to increase the cognitive effort required to process them, distracting viewers from the intended message. High-quality execution emerged as a critical factor for effective storytelling and brand communication.

Navigating AI’s Transformative Potential

Commenting on the findings, Ramón Melgarejo, President of Strategic Analysis and Insights at NIQ, stated:

“Brands and agencies are innovating at a rapid pace by leveraging AI-generated content in their advertising. They need to be cautious, as our study reveals that consumers are highly sensitive to the authenticity of ad creative, both at the implicit (non-conscious) and explicit (conscious) levels. Brands must prioritize insight-driven creative evaluation to produce effective ads.”

The study emphasizes the importance of balancing the efficiency and cost-effectiveness of AI-generated content with the need for quality and authenticity. While generative AI holds exciting potential for early-stage ideation and brand asset testing, poorly executed AI content can undermine its value. NIQ’s findings suggest that this emerging technology, when integrated thoughtfully, can complement traditional ad creation rather than replace it.

“As advertisers experiment with generative AI to optimize ad creation and reduce costs, this research offers essential safeguards,” Cyhan-Bowles explained. She cautioned that advertisers must be mindful of the execution quality to avoid alienating consumers.

Driving Marketing Efficiencies with AI

Beyond advertising, AI is reshaping marketing by providing deeper insights into consumer preferences. By bridging the gap between companies and their customers, AI enables the development of more consumer-focused products and marketing strategies. Tools like NIQ’s Ad Explorer help marketers enhance brand equity by leveraging unconscious consumer insights, enabling them to prioritize creative ideas, test multiple ad iterations, and meet tight deadlines without sacrificing quality.

The Research Methodology

The NIQ study involved over 2,000 participants who viewed a range of AI-generated ads varying in quality from low to high. For approximately 150 participants, brain activity was measured using electroencephalograms (EEGs) to assess unconscious responses. Following the ad viewing, all participants provided explicit feedback through surveys. This dual-method approach enabled researchers to capture both implicit and explicit consumer reactions, offering a comprehensive understanding of the impact of AI-generated advertisements.

Implications for the Future of Advertising

The findings underscore the potential and pitfalls of using generative AI in advertising. While AI can enhance creative processes and improve efficiency, advertisers must tread carefully to ensure their content resonates with consumers at both conscious and subconscious levels. By prioritizing quality, authenticity, and consumer insights, brands can harness AI to create impactful, memorable advertisements that enhance rather than detract from their equity.

About NIQ

NielsenIQ (NIQ) is the world’s leading consumer intelligence company, offering unparalleled insights into consumer purchasing behavior and uncovering new paths for growth. In 2023, NIQ merged with GfK, combining two industry leaders to achieve unmatched global reach. Operating in over 95 countries and representing 97% of global GDP, NIQ provides a holistic view of retail through advanced analytics and state-of-the-art platforms. For more information, visit www.niq.com.

The original announcement text is the official authoritative version. Translations are provided for convenience and should reference the original for any legal interpretations.

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