NIQ Reveals Consumer Perceptions of AI-Generated Ads

KUALA LUMPUR, Dec 13 (Bernama) -- NielsenIQ (NIQ), the world’s leading consumer intelligence company, has released pioneering research on how artificial intelligence (AI)-generated advertisements are processed by consumers, providing crucial insights for advertisers navigating the evolving landscape of AI technology.

These findings, which will be presented at the 2025 Consumer Electronics Show (CES) during a panel session, Adapting to Change: Demographic Shifts in Advertising Strategy, on Jan 9 next year, reveal key challenges and opportunities for brands using AI in advertising.

NIQ President, Strategic Analytics & Insights, Ramon Melgarejo said brands and agencies are innovating at a rapid pace, leveraging AI-generated content in their advertising. 

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“They need to be cautious, as our study reveals that consumers are quite sensitive to the authenticity of ad creatives, both at the implicit (nonconscious) and explicit (conscious) levels. Brands must prioritise insights-led creative evaluation to produce effective ads,” he said in a statement.

Key research findings reveal that consumers often find AI-generated ads less engaging, perceiving them as "annoying", "boring", and "confusing". These sentiments can lead to a negative halo effect, dampening both the ad and the brand’s image.

The study also finds that AI-generated ads, even those deemed high-quality, tend to activate weaker memory responses compared to traditional ads, which may impede consumers’ motivation to act.

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While AI-generated ads can reinforce existing brand associations, the overall negative perception may diminish this benefit.

Low-quality visuals in AI-generated ads increase the cognitive effort required to process them, distracting from the intended message. High-quality execution is essential for effective storytelling and brand communication.

AI’s role in enhancing long-term marketing efficiency, particularly in product development and consumer insights, is also significant. Tools like NIQ’s Ad Explorer help marketers leverage consumer perceptions and optimise creative processes while meeting deadlines without compromising quality.

-- BERNAMA