E.l.f beauty and Matt Rife
E.l.f. Beauty, a brand often praised for its social impact, launched a campaign starring controversial comedian Matt Rife in August. The partnership was seen by some consumers as a departure from e.l.f.'s core audience values of social responsibility and inclusivity, where brands that pull back are facing consequences.
- Some 40% of Gen Z adults, and 19% of total US adults, have stopped using and purchasing from brands that have reversed or contradicted their DEI efforts, per a March Ad Age and Harris Poll survey.
In this partnership, the brand went wrong by chasing a broader audience and losing sight of its long-term consumers, said Crystal Foote, founder of Digital Culture Group.
“Make sure those loyalists who have been with you since day one continue to feel comfortable buying your product,” she said.
Coca-Cola’s second AI act
- Coca-Cola didn’t seem to mind last year’s backlash to their AI-generated holiday commercial, so they returned with another one this year.
The Coca-Cola brand can shield it from losses tied to AI experimentation, but that won’t be the case for every brand, said our analyst Arielle Feger in a “Behind the Numbers” episode.
“The minute you say ‘This is an AI commercial,’ people are zoomed in and looking for inconsistencies,” she said. “That’s a pretty big risk…for smaller brands who maybe don’t have that brand loyalty on their side.”
About half of US adults think AI will hurt creative thinking (53%), according to a June Pew Research Center study, but data on whether that concern translates to advertising performance is mixed.
- Only 24.7% of US consumers dislike an ad more when they know it’s created by AI, according to a March EMARKETER survey.
McDonald’s is lovin' AI
Beyond making consumers feel creatively uninspired, AI has sparked discomfort. That was the case for a McDonald’s ad in the Netherlands, which the brand admitted was built almost entirely with AI.
It was not just attacked for the eeriness of its AI use, but also its tone. Rewriting “It’s The Most Wonderful Time of The Year” as “It’s The Most Terrible Time of The Year,” consumers said it missed the mark, and McDonald's got the message. The fast food giant took down the ad soon after its release.