Coca-Cola’s AI Holiday Ad: Bold Innovation or Soulless Shortcut? | Reimagining Retail

Summary

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Podcast Summary: Coca-Cola’s AI Holiday Ad: Bold Innovation or Soulless Shortcut?

Behind the Numbers: an EMARKETER Podcast | Reimagining Retail

Date: November 19, 2025
Host: Susie Dava Kenyon
Guests: Arielle Fager, Sky Canavas

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Episode Overview

This episode tackles the increasingly omnipresent role of artificial intelligence (AI) in retail advertising, using Coca-Cola’s latest AI-generated holiday ad as a case study. Through a lively, structured debate, the panel explores whether AI is sparking new creative avenues in marketing or leading brands to lose their human touch. Later, they discuss how the flood of AI-generated content is actually increasing the value of authenticity and examine practical ways brands can use AI tools while maintaining real connections with their customers.

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Key Discussion Points & Insights

1. Coca-Cola’s AI Holiday Ad: Progress or Parody?

[03:13 – 08:12]

• Background:
  Coca-Cola used generative AI for its iconic “Holidays Are Coming” ad campaign for the second year in a row, claiming "10 times better craftsmanship" and fewer humans in the story.
• Debate Structure:
  • Arielle argues the move is a soulless shortcut, while Sky plays devil’s advocate for AI innovation.

Arielle’s View – Critique of the AI Campaign

• Coca-Cola is a brand synonymous with Christmas. By relying on AI, they risk diluting the nostalgia and emotional resonance their ads are famous for.
  • “For Coca Cola, a brand that is so embedded in Christmas and known for their Christmas ads, to take what I’m calling a shortcut is… a little bit of a wrong turn.” — Arielle [03:18]
• Last year’s AI-driven ads were not well received, yet the company doubled down, which she sees as risky.

Sky’s View – Embracing the AI Evolution

• The ads are similar to last year, even retaining small production issues (like inconsistent truck wheels), but Coca-Cola has adopted a “move forward” attitude, normalizing imperfection.

  • “Coca Cola’s attitude has been like, it doesn’t have to be perfect. We just have to move forward with AI because this is the future.” — Sky [04:38]

• Research on consumer attitudes is split; some actually enjoy or are indifferent to AI in ads, especially younger audiences.

  • AI is “the next revolution,” changing not only creative processes but also industry expectations.

• Susie’s Stats/Context:

  • 65% of consumers feel uneasy about AI in ads. However, the public may be growing more accepting, treating errors (e.g., misplaced props in film/TV) as part of the digital experience.
    • “Sometimes in real movies, there’s a Starbucks cup on one side... And that kind of had some interesting backlash, but not really. It was kind of comical, too. Is that what’s happening now?” — Susie [06:15]

• Scrutiny Risk:
  Arielle warns that openly promoting an “AI ad” invites laser-focus on flaws—fine for Coke, tough for smaller brands. - “The minute you say this is an AI commercial, people are zoomed in. They are looking for the inconsistencies. And I just think that’s a pretty big risk.” — Arielle [06:57]

2. The Value of Human Connection and Authenticity

[08:12 – 13:19]

• Flood of AI Content:
  The proliferation of synthetic, AI-generated content has brands and consumers craving what feels real.
  • “Consumers still feel that authenticity is important and that creators deliver it.” — Susie [08:41]
  • Shoppers discover products 10x more often on social than via AI tools.
  • “More than half of US social users say a creator influenced a recent purchase.” — Susie [08:41]

Sky’s Insights:

• Human-created content builds both emotional and information trust. Even large language models (LLMs) prioritize authentic community content (Reddit, YouTube, etc.) over synthetic material for quality results.
  • “There’s really a higher priority on human produced content both for human connection and for the AI LLM connection.” — Sky [10:25]

Arielle’s Observations:

• Brands are now differentiating by promoting their “no AI” stance (e.g., Dove’s anti-AI pledge).

  • “We’re going to see companies differentiate themselves in saying, no, we’re not using AI. I think that in itself will become kind of a way to signal to consumer we’re real, we’re authentic.” — Arielle [10:25]

• The use of AI on the back end (personalization, problem-solving) paired with real people on the front end becomes a mark of authenticity and trust.

• Collaboration between AI and Human Creativity:
  There are ways for AI to enable more meaningful, efficient personalization (Ulta’s recommendations, Amazon’s Rufus, Walmart/OpenAI integration), while creators inject community and imperfect realness. - “Any place where you can solve a consumer problem, you’re probably going to have a lot of good luck with that.” — Arielle [11:50]

• AI-Native Creators:
  Sky predicts the future will see blending, with “AI native” creators using new tools as creative mediums (referencing OpenAI’s Sora video platform).

3. Real-World Examples: Brands ‘Keeping It Real’ with AI

[13:19 – 19:59]

Arielle: Heinz’s AI Ketchup Campaign ([14:05 – 15:35])

• Heinz used DALL·E to generate ketchup images for a playful campaign. The AI-created bottles always resembled Heinz, even when results were odd or imperfect.
  • “Every iteration that DALL·E came up with was very much looking like a Heinz ketchup bottle… but also show these images. The text was messed up, they looked wonky, they looked weird.” — Arielle [14:40]
• Embraced AI’s quirks transparently and humorously—“a tongue in cheek moment”—while reinforcing brand identity and trust.
  • “I think you can play with it, and I think you can be self-aware.” — Arielle [15:35]

Sky: Duolingo’s Brain Rock Meme Collaboration ([16:14 – 17:57])

• Duolingo used a viral Gen Alpha AI meme (“brain rock” characters) by dressing its mascot accordingly, fusing meme culture with core brand identity.
  • “It became a kind of a joke. But it also drove app downloads and a lot of engagement around that core audience… experimenting with AI and receptive to AI advertising that’s creative and fun and engaging.” — Sky [16:48]
• Hints at new engagement models and potential brand safety considerations as AI tools (like Sora) seek partnerships with consumer mascots.

Susie: Warby Parker’s AI-Driven Advisor App ([17:57 – 19:44])

• Warby Parker pivots from its original at-home try-on model to an AI-driven Advisor App for personalized virtual recommendations.
  • “Now they’ve moved away from that… but it also modernizes them and brings them to the AI fold.” — Susie [18:30]
• Increases efficiency and access while staying close to the brand’s digital roots.

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Notable Quotes & Timestamps

• Arielle Fager on nostalgia vs shortcut:
  “For Coca Cola…to take what I’m kind of calling a shortcut is, I think, a little bit of a wrong turn.” [03:18]
• Sky Canavas on consumer attitudes:
  “AI doesn’t make ads inherently less likable among consumers. And in fact, among younger consumers, it might cause them to like ads more or improve their brand perception.” [05:23]
• Susie Dava Kenyon on authenticity:
  “Consumers still feel that authenticity is important and that creators deliver it.” [08:41]
• Arielle Fager on brand differentiation:
  “We’re going to see companies differentiate themselves in saying, no, we’re not using AI…as a way to signal to consumers we’re real, we’re authentic.” [10:25]
• Sky Canavas on blending AI and creators:
  “We’ll see them blend more…a new generation of creators that are AI native or take AI as their medium.” [12:56]
• Arielle Fager on brand transparency:
  “Be clear about what you’re doing and understand that it’s not gonna be perfect…you can play with it and be self-aware.” [15:35]
• Sky Canavas on meme creativity:
  “Duolingo…took its little mascot and had him dressed up as one of these brain rock characters…tied in well into its core brand identity.” [16:28]

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Practical Takeaways & Brand Strategies

• Leverage AI for Efficiency:
  Use AI to solve genuine consumer problems and streamline decision-making, but maintain a transparent, self-aware tone about the technology’s imperfections.
• Double Down on Authenticity:
  Human creators and “no AI” pledges are valuable differentiators. Consumers still crave realness in an era flooded by synthetic content.
• Blended Approaches Work Best:
  Successful brands are pairing AI’s personalization and scale with genuine creator-driven community engagement.
• Embrace, But Don’t Overhype AI:
  Announcing “AI-powered” entices scrutiny. For most brands, subtle, thoughtful integration may be safer and more effective than loud self-promotion.

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For listeners, this episode offers a robust, balanced look at the future of AI in retail branding—reminding us that while the tools are changing fast, the core of marketing still lives in meaningful, authentic human connection.

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Transcript

[A]

In the rapidly evolving world of retail media, few platforms are uniquely positioned as DG Media Network. With more than 20,000 stores, Dollar General serves as a lifeline for 90 million plus shoppers across the US at a time when all shoppers are looking to save money. DG Media Network Media built better. Hi, everyone. Today is Wednesday, November 19th. Welcome to eMarketers weekly retail show, Reimagining Retail, an emarketer podcast made possible by DG Media Network. This is the show where we talk about how retail collides with every part of our lives. I'm your host, Susie Dava Kenyon, and on today's episode, we're talking about how AI is changing the face of retail and what that means for creativity, connection, and keeping things real. Joining me, we have two podcast regulars, Arielle Fager, who's in the studio with me. Hey, Arielle.

[B]

Hey. It's fabulous to be here.

[A]

And Sky Canavas joining us from Texas. Hey, Sky.

[C]

Hey, Susie. Hey, Ariel.

[B]

Hey.

[A]

So today we're talking about AI it's everywhere, powering ads, generating content, and reshaping how brands connect with customers. It's changing the creative process, the marketing playbook, and even how shoppers discover products. But the question really isn't if retailers will use it. It's more like how will they keep using it and and maintain the human touch along the way? So today, we're tackling the AI boom in three quick rounds. Part debate, part reality check. We'll start with Coca Cola's polarizing holiday ad and whether AI creativity is progress or parody. Then we'll look at how the rise of AI generated content is making human creators that much more valuable. And finally, we'll wrap up with some smart ways brands are using AI while keeping their customer connection real. Okay, so with that, let's get started. It's our first segment, our opening round, aptly called debatable. The question we're asking is, is Coca Cola's AI holiday ad a bold move forward or a soulless shortcut? So if you haven't been following the latest ad news, let me tell you what happened. Coca Cola's iconic Holidays Are Coming campaign just got another AI makeover. So for the second year in a row, Coke used generative AI to bring back its red trucks and polar bears. This time, though, it's with fewer humans and what it's calling 10 times better craftsmanship. Some see it as proof that AI is becoming a real creative partner, faster, cheaper, and global. But others say it's one more step towards Solis Pixel Perfect Nostalgia. So one more thing to remember before we get into the round is for the audience who does not know our podcast guests super well. The opinions that they are both going to present are not necessarily their personal views, but I arbitrarily gave them a side to debate. So with that, I'm going to start with Ariel, who. This is a big no for you. Tell us more.

[B]

Yeah, so I think it's. It's a very interesting move considering that last year Coca Cola did AI ads and had a pretty negative response from consumers. And so I thought it was a pretty bold choice to double down and do it again this year. Granted, they did remove the humans, which I think were a big part of people's complaints last year. But I think for Coca Cola, a brand that is so embedded in Christmas and known for their Christmas ads, to take what I'm kind of calling a shortcut is, I think, a little bit of a wrong turn. I think they should have really leaned into their, Their nostalgia, their. Their, you know, they created the, The Santa Claus that we know and love. So I think they should have done that. And instead of what they did do.

[A]

I'm sorry, I have to correct that. The Santa we know and love is the Macy's Santa. It's not. Not the Coke Santa.

[B]

Okay, fair enough. But I will say I. They. They continue to play on that.

[A]

Yes.

[B]

Imagery.

[A]

They do have a magical touch with their ads that some say this ad is losing. What about you, Sky? I know that you might have different feelings about this, but there are some good things about the ad. No.

[C]

So I'm in the fortunate position of presenting devil's advocate view for this ad that has been very polarizing. But in some ways, I want to say, what is the big deal? It's very much the same story from last year. The music is the same, the ads are very similar. Even the continuity issues with the truck wheels that jump around, and sometimes you see three wheels, sometimes there are six. Who knows? They're the same. So they couldn't fix that. Coca Cola's attitude has been like, it doesn't have to be perfect. We just have to move forward with AI because this is the future. And they've said that for the most part, consumers actually responded very positively to the ads last year, and that was the justification for bringing them back. And I think some of the research we see on consumer attitudes towards AI and advertising, it's pretty split. On the one hand, consumers might feel uneasy about it, but on the other hand, we've also conducted research that shows that AI doesn't make ads inherently less likable among consumers. And in fact, among younger consumers, it might cause them to like ads more or improve their brand perception. At the very least, it doesn't hurt. And I think from where we sit, we do see a lot of hand wringing in the industry around what this means for creative industries, for knowledge workers. But the reality is that AI is the next revolution we've had the industrial revolution, the tech revolution, and that's going to change how creative industries and knowledge workers work.

[A]

So on one hand, the vibe kind of feels like it fell flat. And we do know that I think the stat is 65% of consumers feel uneasy about AI and ads. The ad is missing that magical touch. But on the other hand, do people really care if it's transparent like the wheel is missing? We were talking about this before. Sometimes in real movies, there's a Starbucks cup on one side, and then they cut. They do so many cuts that the Starbucks cup is on the other side. Wasn't it in that Harry Potter where the Starbucks cup was actually a Game of Thrones? Right. And that kind of had some interesting backlash, but not really. It was kind of comical, too. Is that what's happening now?

[B]

I mean, it is, I think, something that I think is a little bit of a risk when you do this is when you announce loud and proud that you're doing an AI ad, you invite scrutiny. The Starbucks cup, Game of Thrones. Yeah, it was a mistake, but it was kind of funny. And everyone knows that happens. But the minute you say this is an AI commercial, people are zoomed in. They are looking for the inconsistencies. And I just think that's a pretty big risk. Maybe not necessarily for Coca Cola, who's a giant brand, but for smaller brands who maybe don't have the strong brand loyalty with on their side. I just think it's. It's such a big risk to take.

[A]

Sky, do you think we're training consumers? Maybe the younger consumers are already trained to start thinking about efficiencies in a different way and to not really care as much about the evolution of creativity.

[C]

I think in advertising, it's a little different. You know, top executives or leaders in advertising will say it's an art form, but consumers don't necessarily see it that way. They see it for what it is. And I think that they'll be more willing to accept the AI part of it as it becomes more prevalent.

[A]

I mean, I think that's a great place to end this conversation because it tees us up so well for the next round, which is all about the human connection. So on the one hand we're saying consumers are going to start to accept AI, AI in the creativity process, but at the same time, with AI generated content flooding our feeds and brand channels, it's really everywhere, right? And the synthetic data, synthetic creation of content is looming large. So retailers are turning to real people to keep things, well, you know, real and feel authentic. They're craving that authenticity sky. It's one of your spoiler alert. It's one of our top trends for 2026. Consumers still feel that authenticity is important and that creators deliver it. Our data shows that shoppers discover products 10 times more often on social than through any AI tool. And more than half of us social users say a creator influenced a recent purchase. So as we see bots taking over on the back end, brands are starting to think about how do you double down on the human front on the front end. So my question to you both then is when everything can be generated, does authenticity become the new premium Sky, I'm going to start with you on this one.

[C]

Yeah, I think that at this time creators and human content become more important, both to build those emotional connections with human consumers, but also as AI plays a bigger role in mediating consumer interactions with brands. It's what AI platforms and LLMs turn to in producing relevant and trustworthy responses. We see that LLMs like ChatGPT frequently cite platforms that feature, feature a lot of community user generated content like Reddit, ranks at the top, YouTube, Wikipedia, all of these that are based on authentic content. Because if LLMs are training on artificially generated content or using that content, then their output deteriorates. So there's really a higher priority on human produced content both for human connection and for the AI LLM connection.

[B]

Yeah, I think we're also going to see, and have been seeing companies differentiate themselves in saying, no, we're not using AI. I think that in itself will become kind of a way to signal to consumers we're real, we're authentic. I believe it was Dove, I believe that took an anti AI pledge to not use AI in their advertising. And I think not every company has to do that, but I do think that we're going to see kind of the, the different ways in which brands use AI. It might be, yeah, maybe they're using it in, you know, the back end, but maybe they say, no, we're going to, we're going to keep real people, we're going to keep real models. So I think that's going to become a differentiator as well.

[A]

I do think there is a place where I can sit well with the human connection and both have a place in a retailer's playbook. So are you guys seeing anything where that sort of dovetails well together? Because, you know, creators are a part of community and authenticity, so everything won't look and feel the same. But AI helps things become more efficient. Like Ulta has said that they use AI for marketing so that they can really personalize that lipstick color to whatever it is that you typically buy or the foundation or whatever it is so it matches and makes your life easier. So is there a place where we see that working together?

[B]

Yeah, I think any place where you can solve a consumer problem, you're probably going to have a lot of good luck with that. Thinking about Amazon's Rufus or Walmart's integration with OpenAI, it's just giving consumers more ways to sift through the massive amount of products that are out there, help them make better decisions, help them, you know, find the best price. And so I think those are tools, those are things consumers are already doing right. They're, they're kind of using the way we shop and just streamlining it. And so I think that's a really great way to use AI and Sky.

[A]

I know for this trend we were talking a lot about the creator platforms that retailers are using to help differentiate and like cut through the noise of all the content that's out there. Do you feel like there is a place where even imperfection that comes from creators will be valued versus obviously in AI we. We just heard from the Coke ad, right? Everybody was upset about the imperfections.

[C]

I think we'll see them blend more. And as we're seeing now, OpenAI has just released a AI video based social network, Sora and I think that's going to be where we start to see a new generation of creators that are AI native or take AI as their medium. And so the output is AI, but what's behind it is human.

[A]

I think that's great because there's so many different ways that this can go. And, and as the different tools evolve, brands will have to pay special attention to figuring out how they can both cut through the noise but also be authentic and be real. And brand consumers will start to value them even more. Which brings us to our next and final round of the day. Let's be practical now for a minute. We've talked a lot about AI, the good and the bad, but how can you give us each an example of how brands are actually keeping it real with AI. We've seen that the tech is moving fast and there are lots of challenges to staying human. So what can we do to use AI to deepen that customer connection? Arielle?

[B]

Yeah, so I'm going to kind of use. It's an actually example from a few years ago, which I think is really interesting. Heinz ketchup had a campaign. It's AI ketchup campaign. And I am a Heinz ketchup lover. So there's that. So basically the commercial was talking about how they asked. It was really around the time that Dall? E had blown up and people were using Dall? E to create images. And they, in the commercial say, we asked Dall? E to create images of ketchup. And this is what it came up with.

[A]

Oh, I remember this one.

[B]

And the big idea is that every iteration that Dall? E came up with was very much looking like a Heinz ketchup bottle. But it also show these images. The text was messed up, they looked wonky, they looked weird. And so I really think it was this way of, yes, we're embracing this, but we're also showcasing the weird little inconsistencies that we all know exist with AI and reinforcing that we are ketchup. It just did a great job of being kind of real, being honest, but also showing that innovation. And I just, I really, I think it resonated really well. It was funny and, you know, it just. It just worked.

[A]

It was like a tongue in cheek moment. Right? Like, we're cool, we're using the new tech, we're ahead of the curve, but.

[B]

But we're also aware. Exactly. We're also aware of the downfalls or the little inconsistencies. So, you know, I think that's just a really fun way to be honest, be transparent. And that's my advice, is be clear about what you're doing and understand that it's not gonna be perfect. Like sky said, there's mistakes in the Coca Cola AI ad, but I think you can play with it and I think you can be self aware.

[A]

Did sky turn you around and now you love the Coke ad?

[B]

No, not yet. Not yet.

[A]

We're working on it. Sky, what's your brand example?

[C]

So I'm kind of building on that and think about how brands can lean into the AI ness of AI, which nowadays we're seeing more AI fueled viral trends. One that's really taken off with Gen Alpha, like my daughter is, are these Italian brain rock characters, which are just these very random, silly Characters and they are part of that meme culture in AI. And we've seen a couple of brands working with these characters. I think one that it really tied in well into like its core brand identity is Duolingo because it took its little mascot and had him dressed up as one of these brain rock characters and make some noise. And then of course that ties into the language learning part of Duolingo, which is you can learn Italian on Duolingo and it became a kind of a joke. But it also drove app downloads and a lot of engagement around that core audience of young Gen Z and Gen Alpha that's really paying attention to AI, experimenting with AI and receptive to AI advertising that's creative and fun and engaging and then there are opportunities to kind of engage in co creation. I've heard that OpenAI is really pushing for brands to allow Sora to use its mascots, which would create new opportunities for a very different kind of consumer engagement. It raises a lot of brand safety issues, of course, but and then that's going to come down to what Sora and OpenAI can do to protect the brand mascots from, you know, being used in inappropriate ways.

[A]

I love that because it's how do you take your brand and modernize it without, you know, steering so far away from your original core mission or the sentiment and you just make it easier for people to find you. And that's amazing. I love all these examples. I was going to think about this in a different way in terms of a tip for retailers, which is more around how can you use some AI tools before you get into advertising and marketing campaigns that are really big splashes. So mine was Warby Parker is now launching an app called Advisor App and so they're moving to not only the virtual try ons which they've been doing for a while, but it's an app that's AI driven that will make suggestions because they've announced that at the end of the year they're discontinuing what was their signature move, which was sending the the eyeglass frames to your house for you to try them on, then send them back. This digitally native brand that now has stores and a lot of outposts started with this move around sending glasses to you for free so you can try them on. And now they've moved away from that and I think it goes back to staying true to your core, but using technology to one. This for sure will help their margin, but it also modernize them and bring them to the AI fold.

[B]

Yeah, I think it's interesting. I mean, I'm not a big fan of them discontinuing the at home try on, but if they're gonna take it away, I do feel like this is a really good way to kind of still give people that ability to try things before they walk into a store or before they commit. So it's still, you know, saving people some time and creating efficiencies. So I do think it was a smart choice.

[A]

Yeah. They've increased access in some ways. To be fair. According to their press release, they were moving away from the at home trials because everybody was so close to a store now that they didn't feel like it was necessary. I think it was like waning in terms of numbers.

[B]

Makes sense.

[A]

Unfortunately, that's all the time we have for today. Thank you, Arielle.

[B]

Thank you. This is a great discussion.

[A]

And thank you, Sky.

[C]

Thanks, Susie.

[A]

And thank you to our listeners and to our team that edits the podcast. Please leave a rating or review and remember to subscribe. I'll see you for more reimagining retail next Wednesday. And on Friday, join Marcus for another episode behind the Numbers, an E marketer podcast made possible by DG Media Network. Cup.