Peter Alexander’s innovative marketing campaign, spearheaded by generative AI, might have rubbed some consumers the wrong way, but industry experts assert it’s a glimpse into the future of brand promotion.
The retailer, which achieved an impressive $548 million in sales last year, described their latest initiative as a “peek into the Peter Alexander universe,” emphasizing the use of “a bit of AI magic to leave limits at the doggy door” in its promotional materials.
According to consumer psychologists, Australians should brace themselves for this trend, as it is expected to become the standard approach in advertising moving forward.
Peter Alexander is not pioneering the use of generative AI in marketing; other brands have already ventured into this space.
In August, J Crew and Vans rolled out an AI-driven campaign to highlight their partnership, followed by similar efforts from Guess, Valentino, and Moncler.
Public reception has been divided. While some critics dismiss these campaigns as “AI slop,” others hail them as the future of brand advertising.
How positive the reactions were seemed to depend on how good the AI was.
”At the moment, there are a lot of brands trying to use AI and using it in a really clumsy way that’s getting a lot of ridicule,” Ferrier explained.
“Peter Alexander, they’ve always had a dog in their advertising … but as soon as it comes to life as AI, it looks creepy and weird.”
But when used well, AI can be a powerful marketing tool.
Ferrier has embraced it at Thinkerbell, which recently worked on campaigns for Victoria’s Transport Accident Commission (TAC) and Menulog using generative AI.
There was some blowback but Ferrier predicts Aussies will quickly come to accept AI marketing as it becomes more mainstream.
“It is likely that over time consumers will not react with the same shock or scepticism,” Anthony agreed.
She said brands will also become better at creating ”human-centred” AI content that evokes more positive reactions.
Like, for example, a pyjama campaign with dogs that look a little less “uncanny valley”.
“Consumers expect warmth, playfulness, and a human touch from a brand like Peter Alexander … they don’t want to see a slick AI dog in their ads,” she added.
Experts predict that as generative AI becomes more powerful and realistic, brands will increasingly utilise it to cut costs, increase output, and personalise content at scale.
In some cases, that may be at the cost of human jobs.
And even though some Aussies will continue to protest its use in brand advertising, the blowback is unlikely to hurt most companies’ bottom line.
“People might express frustration or disapproval initially, but unless a strong alternative brand activates their values better, many will continue shopping out of habit or convenience,” Anthony said.
“And most brands won’t abandon generative AI as the efficiencies are too valuable.”
