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Why is McDonald's under fire for its Christmas ad? Complete controversy explained

McDonald’s faces backlash for its AI-generated Christmas ad, sparking debate on holiday messaging and the growing role of AI in brand advertising
  • SAN LEANDRO, CALIFORNIA - APRIL 28: A sign is posted in front of a McDonald's restaurant on April 28, 2022 in San Leandro, California. Fast food chain McDonald's reported better-than-expected first quarter earnings with revenue of $5.67 billion compared to analyst expectations of $5.59 billion. (Photo by Justin Sullivan/Getty Images)
    SAN LEANDRO, CALIFORNIA - APRIL 28: A sign is posted in front of a McDonald's restaurant on April 28, 2022 in San Leandro, California. Fast food chain McDonald's reported better-than-expected first quarter earnings with revenue of $5.67 billion compared to analyst expectations of $5.59 billion. (Photo by Justin Sullivan/Getty Images)

    McDonald’s is under fire for its Christmas ad after viewers criticized the AI-generated commercial as “distasteful” and unfit for the holiday season. The brand removed the video from YouTube following significant backlash, particularly over its satirical depiction of Christmas stress and the heavy use of AI-generated visuals, as per Seattle Times.

    The 45-second ad, titled “It’s the most terrible time of the year,” was created for McDonald’s Netherlands by the agency TBWA\NEBOKO in collaboration with the production company Sweetshop. Directed by Mark Potoka and Matt Spicer, the piece showcased chaotic holiday moments—people slipping on ice, struggling with tangled lights, burning cookies, and facing unexpected kitchen mishaps. It ended with a message encouraging viewers to escape the holiday frenzy by retreating to McDonald’s “till January.”

    While intended as a humorous commentary on holiday stress, the ad drew criticism online.

    Marketing experts also questioned the creative direction. David Stewart, emeritus professor of marketing at Loyola Marymount University, said,

    “The McDonald’s ad emphasizes all that is negative about the holiday season, and the suggestion that McDonald’s is a respite from such negative experiences is not credible.” He added, “It is likely that a very unhappy human came up with the idea of denigrating the holiday experience, even if AI was used to create part of the ad.”

    In response to the criticism, Sweetshop clarified that AI was only part of the creative process. The company stated,

    “We generated what felt like dailies — thousands of takes — then shaped them in the edit just as we would on any high-craft production. This wasn’t an AI trick. It was a film.”

    McDonald’s has not issued a public comment regarding the backlash.


    Growing use of AI in advertising and industry reactions

    The controversy arises as major brands increasingly experiment with AI-driven advertising. Coca-Cola recently released its second consecutive holiday campaign featuring AI-generated imagery. Other companies—such as Google, Toys R Us, and Under Armour—have also adopted synthetic visuals in marketing efforts. According to marketing analysts, AI-based content is gaining momentum due to its cost efficiency and creative flexibility.

    Justin Inman, CEO of Emberos, said the McDonald’s campaign signals a shift in how global brands approach marketing.

    “Whether we like the ad itself, McDonald’s is making a statement with this campaign: AI has changed the playbook,” he explained. He added that AI-driven visibility is becoming increasingly significant, noting, “Love it or hate it, expect to see more of it.”

    As AI-generated advertising becomes more common, industry observers expect brands to continue experimenting—despite mixed public reactions.

    TOPICS: McDonald's