AI, Ads, and Outrage: Coca-Cola’s Holiday Backlash

Key Concepts

• AI-Driven Production: The use of generative AI tools to create high-quality commercial content, emphasizing speed and iteration.
• Uncanny Valley: A psychological phenomenon where human-like figures that are almost, but not quite, realistic cause feelings of unease or revulsion.
• Speed of Culture: The ability for brands to produce content rapidly enough to remain relevant in a fast-paced digital landscape.
• Fandom vs. Advertising: A strategic shift from traditional, interruptive advertising toward creating entertaining content that builds genuine audience connection.
• Human-in-the-Loop: The necessity of human artistry, direction, and technical skill to refine AI outputs, which typically only reach 60–80% completion on their own.

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1. The Coca-Cola Holiday Campaign: A Case Study

Jason Zada, founder of Secret Level, discussed the production of Coca-Cola’s AI-reimagined holiday commercials. The brief was to update the classic "Holidays are Coming" spot while maintaining its original spirit.

• Production Speed: The team utilized AI to iterate through storyboards and character designs in hours rather than weeks.
• Evolution of Tech: The technology evolved so rapidly during production that the team completely redid the spot twice before it aired.
• Human Effort: Despite the "push-button" stigma, the project required a team of 20+ people working frame-by-frame and pixel-by-pixel to ensure the warmth and humanity of the characters (e.g., sea lions, koalas, rabbits).

2. Addressing the "PR Problem" and Public Backlash

Zada argues that AI suffers from a significant public relations issue, leading to misconceptions that it is "lazy" or "stealing jobs."

• The Nature of the Backlash: Zada noted that the negative reaction was often disconnected from the actual quality of the work. He observed that when viewers were unaware the content was AI-generated, the reception was overwhelmingly positive.
• Cultural Lightning Rod: The backlash was often fueled by broader societal fears regarding job displacement and environmental impact, rather than the specific creative output.
• Regional Differences: Zada observed that markets in Asia and India have been more receptive to AI, whereas the U.S. market has shown more resistance.

3. The Role of the Creator in the AI Era

Zada emphasizes that AI is a tool, similar to Computer Generated Imagery (CGI), and that its effective use requires traditional artistic expertise.

• Upskilling: Secret Level launched an academy to help traditional filmmakers learn AI, arguing that those who do not adapt will be left behind.
• The "Toy Story" Moment: Zada believes the industry is waiting for a "Toy Story moment"—a piece of content so compelling that the audience stops focusing on the technology and focuses entirely on the story.
• The Human Filter: Zada’s daughter, a 3D animation student, serves as his "toughest critic," pointing out technical flaws in walk cycles or character movements that AI often misses. This highlights the ongoing need for human eyes to provide the final 20–40% of polish.

4. Strategic Insights for Marketers

Zada offers a new framework for brands looking to integrate AI into their marketing strategies:

• Entertain, Don't Advertise: Zada’s core philosophy is that consumers dislike traditional advertisements but love entertainment. He encourages brands to use AI not to cut budgets, but to "do more" with existing budgets to create high-quality, entertaining content.
• Brand Courage: He praises Coca-Cola for their "fearlessness" in standing by the work despite the initial backlash, noting that this sets a precedent for other brands to follow.
• Moving at the Speed of Culture: By leveraging AI, brands can reclaim their role as leaders of pop culture, a position they largely lost to the rapid pace of the internet.

5. Notable Quotes

• "AI has a bad PR problem... people think it's super easy, that it is just pushing a button... I would argue that it's actually easier to go out and shoot something than it is to do it in AI these days." — Jason Zada
• "I want you to look at anything that we've produced in AI and just say, 'Is it a good film? Is it a good commercial?' versus 'Is it a good AI commercial?'" — Jason Zada
• "Don't think of AI as spending less. Think of it as you're getting more." — Jason Zada

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Synthesis

The transition to AI in commercial production is not about replacing human creativity but about augmenting it. While the technology faces significant public skepticism, the path forward for brands lies in using AI to produce high-quality, entertaining content that fosters fandom. Success in this new era requires a "human-in-the-loop" approach, where traditional artistic skills are used to refine and perfect the output of generative tools, ultimately moving the industry toward a future where the technology becomes invisible and the storytelling takes center stage.