Behind the Numbers: How Consumers Interact with Ads – Balancing Effectiveness, Intrusiveness, and AI-Generated Content

Published on February 7, 2025, by EMARKETER

In the latest episode of EMARKETER's podcast, "Behind the Numbers," hosts Marcus and Rahul Charda engage in a deep dive into the evolving dynamics of consumer interaction with advertisements. Joined by Evelyn Mitchell Wolf, a senior analyst specializing in digital advertising and media based in Virginia, the discussion navigates the delicate balance between ad effectiveness, intrusiveness, and the burgeoning role of AI-generated content.

AI in Super Bowl Ads: A Cautious Embrace

The episode opens with an exploration of the upcoming Super Bowl 59, highlighting the astronomical cost of ad placements and the tentative incorporation of AI in commercial content. Marcus introduces the topic by mentioning that Fox Sports has sold out ad spots, each fetching around $8 million, with a notable inclusion of AI-focused creative elements.

Mark Evans, Executive VP of Ad Sales for Fox Sports, notes, “You will see some more AI-focused creative.” However, as Trishler Oswald of Adweek reports, despite AI's growing influence, brands are treading carefully. Oswald emphasizes, “Don't expect this year's commercials to earn the moniker AI Bowl,” citing last year's backlash against AI-generated ads as a deterrent. For instance, Coca-Cola faced criticism for its AI-created holiday ad, accused of lacking the warmth of traditional campaigns.

Consumer Perception of AI-Generated Ads

Evelyn Mitchell Wolf delves into a consumer survey conducted last summer, revealing generational disparities in recognizing AI-generated advertisements. She states, “Baby boomers, about 58% said that they didn't know if they had seen any AI-generated ads,” compared to Gen Z at 31%. Evelyn attributes this gap to younger generations’ inherent ability to detect subtle cues in advertising, such as “a little halo around the person” or inaccuracies that hint at AI involvement.

Evelyn Mitchell Wolf (05:09):
“I think it depends on the brand. It depends on the product. The individual ad in question... it all comes down to the audience.”

Marcus probes further, questioning the accuracy of these self-reported detections. Evelyn concurs, acknowledging the uncertainty inherent in consumers' self-assessments.

The Implications of Labeling AI-Generated Ads

A significant portion of the discussion centers on whether ads should be explicitly labeled as AI-generated. Evelyn highlights the potential repercussions: “If the consumer knows for sure this is an AI-generated ad, then any of the negative implications that that brings... they could have any of those reasons that they just don't like AI ads” (08:38).

Rahul Charda adds another layer, emphasizing the trust factor: “Brands who don't label their creative as AI-generated run the risk of damaging trust with consumers if it's revealed later on that they have used AI to generate ads” (09:47). This transparency—or lack thereof—could either mitigate or exacerbate consumer skepticism towards AI in marketing.

Behind the Scenes: AI’s Subtle Influence

Marcus introduces the notion that AI might be influencing advertisements behind the scenes, even if not overtly visible to the consumer. He references WPP's agencies utilizing AI in production, ideation, and media planning for Super Bowl spots, underscoring that “human creativity remains at the core” but AI’s role is quietly expanding (14:38).

This behind-the-scenes use of AI highlights a dichotomy in advertising strategies: while consumers may resist overt AI presence, the technology continues to enhance efficiency and creativity in the background.

Intrusiveness vs. Ignorance: Navigating Consumer Responses

Transitioning to consumer behavior, Evelyn discusses Max Williams’ research on how consumers perceive ads based on their intrusiveness versus noticeability. She reveals two key takeaways:

1. Consumers have mastered the art of ignoring ads.
2. An ad does not have to be intrusive to be noticeable.

Evelyn Mitchell Wolf (15:51):
“Consumers have mastered the art of ignoring ads. ... an ad does not have to be intrusive to be noticeable.”

The research indicates that ads interrupting the user experience—such as mid-roll video ads or full-screen displays—are perceived as more intrusive. In contrast, targeted ads based on search history or pre-roll video placements strike a better balance between visibility and user experience.

Feeling Ignored: The Gap Between Marketers and Consumers

A pressing concern discussed is the sentiment among consumers feeling ignored by marketers. Evelyn elucidates that this feeling stems not from the absence of ads but from the irrelevance of the content: “Consumers feel like advertisers are ignoring their end of the value exchange of targeted advertising” (20:25). This disconnect is further exacerbated by demographic mismatches; for instance, many marketers fall within higher income brackets compared to the average consumer, leading to misaligned messaging.

Marcus adds a socio-economic perspective, noting that “about half the country makes less” than the average marketer, which can contribute to a perceived disconnect in advertising narratives and values (22:19).

Generational Preferences and the Value Exchange

Age plays a significant role in how consumers perceive and interact with ads. A GWI study mentioned by Marcus found that Gen Z consumers are “around 50% more likely to say that they want to be entertained in commercials,” whereas boomers prefer straightforward product information. Evelyn ties this to the concept of a value exchange, where consumers are willing to tolerate ads if they receive relevant information or access to free content in return.

Conclusion: Striking the Right Balance

The episode culminates with a consensus on the nuanced approach required in modern advertising. While AI presents new opportunities for personalization and efficiency, its deployment must be carefully managed to maintain consumer trust and avoid perceptions of intrusiveness. Effective advertising in the current landscape hinges on understanding and respecting the diverse preferences and expectations of different consumer segments.

Marcus concludes:
“It’s really hard to get to [the right] message, the right place, the right time, the right person, the right everything.”

For marketers seeking to navigate these complexities, the episode references Max Williams' comprehensive report, How Consumers Perceive Ads, available for EMARKETER Pro Plus subscribers and through eMarketer.com.

This episode of "Behind the Numbers" offers a thorough examination of the delicate interplay between ad effectiveness, consumer intrusiveness, and the integration of AI in advertising. By highlighting generational differences and emphasizing the importance of relevance and trust, EMARKETER provides valuable insights for marketers striving to connect authentically with their audiences in an increasingly digital and AI-driven landscape.