Inside CPG's AI advertising boom, from Super Bowl spots to synthetic focus groups

In a groundbreaking shift, major consumer goods companies are increasingly integrating artificial intelligence into their marketing strategies, dramatically speeding up the creation of advertising content. Notably, Coca-Cola's festive ad and Svedka's Super Bowl commercial were both crafted with the assistance of AI, showcasing the technology's rising influence in the industry. Jennifer Mennes, VP and global head of digital marketing and strategy at Mondelēz International, shared that the process of producing short social media videos for the Chips Ahoy! character 'Chip' has been transformed. Previously, it could take up to ten weeks to develop a six- to eight-second video. However, with AI, the marketing team can now generate a video in under five minutes, and after team reviews, the entire process can be completed in just days. While the allure of large-scale campaigns like Super Bowl ads is evident, Mennes points out that the real advantage lies in AI's ability to produce a high volume of text, headlines, social media content, and lifestyle visuals efficiently. The challenge remains to avoid generating what some call 'AI slop'—content that fails to resonate with consumers due to its lack of quality. Johnny Rohrbach, founder of global partnerships and operations at Silverside AI, highlights the importance of AI in the idea generation phase, allowing teams to explore numerous creative directions. His lab collaborates with brands, including Coca-Cola, to enhance holiday campaign strategies. Furthermore, AI is also being utilized for focus group testing. Sonja Evans, VP of business intelligence and strategy at Blue Chip Marketing Worldwide, explained how her agency uses AI to create digital replicas of target consumers, enabling them to test creative concepts before presenting them to real audiences. The agency’s innovative approach allows them to gather consumer reactions through 'boardomatic' animations—essentially rough drafts of commercials without the need for extensive production resources. This method enables brands to test multiple concepts quickly and economically. As consumer demand for content grows, marketing teams are under pressure to remain relevant in consumers' feeds. However, marketing budgets often do not expand in tandem with this demand. AI presents a solution, allowing teams to maximize their existing budgets while producing more content. Yet, Mennes warns that there is a fine line between quantity and quality; content that appears low-effort can alienate consumers. Despite the potential pitfalls, companies like Mondelēz view AI as a complementary tool that enhances their connection with consumers rather than as a replacement for human oversight. Mennes emphasized that no content is released without thorough approval, ensuring that quality remains paramount. The expectation for authenticity is particularly critical for food brands, as consumers can quickly spot AI-generated imagery that seems inauthentic. Critics have voiced concerns over low-quality AI advertisements, including some Super Bowl spots, yet the reception to certain campaigns, like Coca-Cola’s holiday ad, was mixed but ultimately successful in driving engagement. A recent study from BCG revealed that while 70% of CPG marketing leaders anticipate that generative AI will accelerate their work processes, only 13% have fully integrated the technology into their marketing operations, indicating a significant gap in maturity. Evans noted that larger brands may have the budgets to explore AI, while mid-sized companies are more focused on immediate business needs due to economic pressures. Mennes observed a positive trend among major CPGs, with an increased willingness to share ideas and solutions regarding their AI challenges. This newfound collaboration is seen as a refreshing step toward accelerating the transformation of their organizations in the face of evolving consumer demands.