Archive · 21 Dec 2025
Brands Bet Big on AI Ads Despite Backlash
Some big companies are making ads using artificial intelligence (AI).
McDonald's in the Netherlands made a Christmas ad with AI that showed funny and stressful holiday situations.
But many people didn't like it because it felt weird and not very festive.
Other companies like Coca-Cola and Toys“R
McDonald’s Netherlands released an AI-made Christmas ad that received backlash for mocking the holiday spirit and its use of AI.
Other brands like Coca-Cola and Toys“R
have also removed their AI-generated ads due to similar criticism.
Despite the backlash, brands and ad agencies are increasingly using generative AI for ads due to lower costs and faster production times.
Indian ad agencies like Rediffusion are launching dedicated AI labs to create GenAI ads, with some producing over 250 video advertisements in the last year.
Brands like Acko and Nerolac Paints are experimenting with AI to generate creative content and reduce production costs by 8-10 times compared to traditional methods.
- Who
- Brands like McDonald's, Coca-Cola, Toys“R
- What
- Using generative AI for ads
- When
- Recently, with McDonald's ad in early December
- Where
- Globally, with examples from Netherlands and India
- Why
- To reduce costs, increase speed, and explore creative possibilities
- McDonald's Netherlands
- Released AI-made Christmas ad
- Coca-Cola and Toys“R
- Took down AI ads after backlash
- Rediffusion
- Launched AI Labs for GenAI ads
- Acko
- Hired AI Creative Lead for AI ads
- Nerolac Paints
- Used GenAI for penguin and polar bear ads
- Cost Savings
- GenAI ads cost 8-10x less than CGI
- AI Tools Used
- Nano Banana, Veo, Eleven Labs, 40-45 different softwares