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Plus: Bluesky Surges As Disgruntled X Users Look For An Alternative

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Christmas is coming early for those who love to hate AI video. Coca-Cola released a trio of annual holiday ads last week. They’re all much more modernized versions of the soft drink’s 1995 “Holidays Are Coming” ad campaign, featuring lit up Coca-Cola delivery trucks bringing holiday spirit and lights to homes, bridges and forests as they pass. 

But unlike the trucks, actors, roads and holiday lights of 29 years ago, the 2024 versions of these ads were created with AI. Forbes senior contributor Dani Di Placido writes about the backlash the ads have received on social media. Three AI studios—Secret Level, Silverside AI and Wild Card—created the ads using multiple AI models. And while the ads do show Coca-Cola delivery trucks, winter weather, towns, lights, people and animals (lots of them, including neighborhood polar bears), there’s quite a bit that doesn’t seem right. The images look realistic enough, but they wouldn’t be mistaken for actual video of vehicles, animals or people. Each separate image is only on screen for a few seconds, making the commercials little more than quick montages.

The ads have been derided as
boring, missing true emotion and uninspiring. Marketing-Interactive reported that 83% of people who saw the ad were neutral in their feelings about the company’s use of generative AI, while nearly 8% felt it was a bit off. About the same amount felt positively about it, based on a statement that Coca-Cola had used AI as an “efficient” way of saving time and money.

While Coca-Cola said it was able to use AI to produce something that would take a year in the space of two months, critics pointed out that AI uses a lot of computing power—meaning it might have been an efficient use of time, but not of electricity. Others noted that AI video rendering currently can’t create legible text, yet the Coca-Cola logo is throughout the advertisements—suggesting they also were thoroughly edited by people. While Coca-Cola has succeeded in creating an ad campaign using AI, at the same time, it’s showing other brands why they should think twice about making the same choice.

History and nostalgia are always important marketing tools. The History Factory and Certus Insights recently surveyed consumers and found 54% want more history-based content from brands on social posts and campaigns. I talked to History Factory Director of Marketing & Communications Adrian Gianforti and Senior Director of Business Insight and Performance Erin Narloch, and Certus Insights President Andrew Rugg about the survey. An excerpt from our conversation is later in this newsletter.

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Megan Poinski Staff Writer, C-Suite Newsletters

Follow me on Forbes.com

In todays CMO newsletter:
  • First Up: Bluesky surges as disgruntled X users look for a less polarizing alternative
  • Legal Matters: Unable to comply with new transparency rules, Google will no longer serve political ads in the EU
  • On Message: Why a company’s history can be a blessing—not a curse
SOCIAL MEDIA
In the last week, thousands of users have ended their relationships with X and migrated to Bluesky. As the social network formerly known as Twitter has become more polarized—especially with owner Elon Musk getting cozier with President-elect Donald Trump—prominent X accounts including actor Mark Hamill and The Guardian newspaper have moved to the social network created by former Twitter CEO Jack Dorsey. As of Tuesday, Bluesky has more than 20 million users, according to ZDnet. 

Bluesky’s signups have surged since Trump’s election earlier this month, but X has been losing users consistently since Musk bought the network, gutted its content moderation staff and dismantled its user verification policies. Last September, X had 588 million users—down from 611 million just five months earlier, and a YouGov survey last August found that 42% of daily X users had a negative opinion of the site, writes Forbes contributor Brad Adgate.

Since Musk bought Twitter in April 2022, disaffected users have been searching for a similar social network. It seems like Bluesky might be winning the race—partially for being “not X,” Laura Graham of North Carolina Central University told Forbes contributor Peter Suciu. But it also has features that, as Forbes senior contributor Paul Tassi writes, make sense—like being able to block users and customize your feed.

Meanwhile, X isn’t doing itself any favors. Last Friday, it introduced new terms of service stating that all posts are used to train Grok, the chatbot for Musk’s xAI service—something users could opt out of previously, writes Forbes senior contributor Kate O’Flaherty.

LEGAL MATTERS
There are now even more differences between the U.S. and EU when it comes to online advertising. For the last six months, every online platform in the U.S. seemed to be filled with political ads, including ones that were misleading and potentially in violation of different platforms’ terms of service. In the EU, there will be no political ads on Google or YouTube, writes Forbes senior contributor Emma Woollacott. The platform decided last week that the EU’s new Regulation on Transparency and Targeting of Political Advertising, which takes effect next October, is too difficult to comply with in its current form. The new EU law “defines political advertising so broadly that it could cover ads related to an extremely wide range of issues that would be difficult to reliably identify at scale,” Annette Kroeber-Riel, Google’s vice president of government affairs and public policy for Europe, told Woollacott. Google has done all that it can in the way of transparency, Kroeber-Riel said, but the new law requires ads be labeled and have an easily retrieved notice with information including the ad’s sponsor, the election or referendum it is for, the amount paid, and any use of targeting techniques—a complex task to keep straight for 27 member countries.
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BRANDS + MESSAGING
This year has not been kind to luxury brands. According to the Fall 2024 Bain-Altagamma Luxury Goods World Wide Market Study, sales this year have fallen 2% compared to last year. While that isn’t a large percentage, it’s huge for luxury, writes Forbes senior contributor Pamela Danziger. Excluding the beginning of the Covid-19 pandemic in 2020, this is the first year since the Great Recession in 2008 that luxury goods sales have dropped. Danziger writes that Bain analysts who wrote the report feel sales aren’t likely to quickly rebound this time. The world has changed, and luxury brands need to re-evaluate. They can no longer rely on Chinese consumers for growth, and they need to win back consumers who either can no longer afford luxury products or do not understand the value proposition. Luxury houses should also think about recalibrating their offerings and prices, especially for products that have seen dramatic price increases but no changes in the products themselves.