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Transforming Holiday Marketing in CPG Retail with Generative AI

iushakovsky-stock.Adobe.com

In today’s rapidly evolving retail landscape, generative AI is the latest technology transforming the way retailers reach and engage shoppers. Getty Images’ VisualGPS consumer survey finds that 79% of Americans are excited about the potential of using AI to increase productivity, and a study by SAP Emarsys confirms that so far, 77% of consumers enjoy the personalized shopping recommendations that this new technology enables.

There is a growing understanding that generative AI technology is already benefitting retailers and shoppers alike by streamlining supply chains and consumer experiences, whether online, in-store, or both.

But lukewarm consumer sentiment around generative AI as a creative tool complicates the picture, and requires that brands strike a balance in their messaging in order to meet people where they are. As the explosive accessibility of image and text generation allowed the public to see this new technology at work before their eyes, VisualGPS research reveals that trepidation increased, with 53% of Americans saying they were very nervous about AI in 2022, rising to 63% in 2023. Therefore, it’s important to tread lightly and understand the current rules of engagement as set by the audiences that brands intend to reach.

Here are four tips to consider when creating visual content for retail marketing strategies this holiday season and beyond, whether produced using cameras or generated by a commercially safe AI tool — and advice regarding when to use each.

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1. Consumers expect to see the real products and packaging.
VisualGPS research confirms that consumers care which topics brands choose to represent using AI-generated images, especially when that image’s function is to communicate information about the product they are buying. In fact, 43% of Americans would actively perceive a CPG brand more negatively if it used an AI-generated image to falsely represent its products. On the other hand, Americans are more comfortable with AI-generated images of neutral objects, such as structures or buildings (75%), vehicles (71%), and animals or natural landscapes (69%) — meaning that the use of AI to create backgrounds, edit environments or tweak details surrounding the product is more acceptable in the eyes of consumers, so long as the aim is not deception about a product’s offering.

2. People — photographed by humans with cameras — are still the most trustworthy.
Especially with the advent of generative AI, consumers still equate real people with trust. Controversies surrounding bias in AI tools have already entered the advertising industry, and VisualGPS research confirms that 49% of Americans said they would view a brand negatively if it used AI-generated images of people, making it their highest subject-matter concern. There is broad cultural understanding that visuals produced with a camera in the real world have the potential to upend biases and push the boundaries of how previously underrepresented or marginalized groups of people are viewed, and CPG brands would do well to capitalize on this preference.

Getty Images’ visual analysis of the most popular still images and video clips used by leading CPG brands found a positive shift in the way that people are represented, although there are still opportunities for improvement. For example, in 2022, visuals featuring people with larger body sizes appeared in the top 100 for the first time, and in a broader range of scenarios rather than just the diet and exercise scenarios in which they are stereotypically overrepresented.

On the other hand, when we looked at visuals showing people enjoying food and beverages, we found that LGTBQ+ people and people with disabilities are rarely seen, and that people of color are rarely seen enjoying cuisine that is more culturally-specific than stereotypical American hamburgers, pizza, or pancakes. VisualGPS research reminds us that 77% of American consumers expect CPG brands to show diversity of all kinds, so leveraging visual content that expands the boundaries of inclusive representation is key to connecting and breaking through in retail marketing.

3. Showcase products across multiple holidays to deepen storytelling.
Most popular holiday-themed images and video clips that CPG brands use tend to feature general signifiers of winter holiday time — fairy lights, cozy scenes by the fireplace, warm family gatherings and elaborate festive meals. At the same time, “Christmas” continues to be among the very top customer searches on the Getty Images website — with it being #2 in 2022.

This year, however, we are seeing rising searches for a more expansive list of winter holiday traditions, including Kwanzaa, Hanukkah, Lunar New Year and Diwali. On social media, VisualGPS research found that 70% of Americans are engaged and inspired by exposure to new and different perspectives — rising to 85% for Gen Z and millennials — so we know that people are intrigued by specific stories about the daily lives of others, whether or not they reflect their own.

So although people of all faiths tend to participate in secularized Christmastime cheer in American culture, choosing visuals that show gift-giving during other holidays can show consumers the type of authentically specific stories that they want to see.

4. Younger audiences are most likely to be receptive to visuals created using generative AI — and fantastical aesthetics can identify them as synthetic.
For CPG brands interested in commercially safe generative AI, creating visuals with fantastical, uncanny or surreal aesthetics is a good place to start, especially when targeting Gen Z and millennials. Because younger generations grew up understanding that the internet is a fantasy space, they are most likely to be receptive to AI-generated visuals that openly declare their own falsehood through bizarre or surreal aesthetics, as some brands are already doing.

To put it in perspective, 51% of Gen Z and millennials agree that AI makes them nervous, but that number rises to 62% of Gen X and 77% of Baby Boomers. Nearly all Americans (87%) agree that images manipulated by AI should be identified, but digital-native generations appear to be more comfortable with the idea of AI-generated visuals existing alongside visuals produced with cameras. This transformative journey provides retailers with an opportunity to create not just visuals, but narratives that deeply resonate with discerning consumers for the holidays and beyond.


Rebecca Rom-Frank is Senior Creative Researcher for the Americas at Getty Images. On the Creative Insights team, she develops thought leadership and visual communication strategies based on cultural and consumer research. Though her background is mainly in writing and publishing, she began her career teaching darkroom photography and has served as a photo editor for a nonprofit organization. She earned her BA from Bard College and studied film production at The New School.

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