Timperio Experiments With Generative AI In Advertising: New Frontiers In Creative Campaigns

This case describes how Giuseppe Timperio, the third-generation owner of Timperio, an Italian family-owned olive oil company explored the pros and cons of using generative artificial intelligence (Gen AI) in advertising. He decided to experiment, working with a small team to pit Gen AI directly against the time-honoured traditional agency approach. Over three weeks, Giuseppe’s team took up the mission to create three sets of ads—one purely AI-generated, one AI-assisted by human oversight, and the last, the tried-and-tested method using their trusted agency. The effectiveness of each set would be measured through key performance indicators such as engagement rates, conversion rates, and audience reach. Two distinct types of content were prepared for the campaign, each aligning with a specific marketing objective—informative and persuasive. The informative ad focused on providing valuable and practical content, such as showcasing the quality and utility of Timperio olive oil, while the persuasive ad spotlighted Timperio’s family tradition and values of heritage and authenticity. Each method generated two distinct formats of advertising content. The first was an Instagram post (a static post that paired text with an image), while the second was an Instagram reel (a 60-second video).

The experiment was conducted in Timperio’s home market of Italy over 14 days, commencing June 6, 2024. In total, the ads received 156,865 views. Several questions arose on analysing the results of the campaign. What could be concluded regarding the effectiveness of AI-generated ads? Which metrics should be focused on? Was the conclusion the same for all consumers or should the strategy differ by consumer segment? Going forward, should Timperio switch to AI for generating ads? What could be other uses of Gen AI for Timperio?

Through the case discussion, students would have an opportunity to learn about Gen AI’s application in advertising and evaluate the pros and cons of using Gen AI by empirically comparing it with traditional methods for ad creative development.

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