Toys "R" Us's new AI commercial stinks—but that isn't the point

It's all about the brand storytelling, baby!

Geoffrey the Giraffe and young Lazarus in the first ever gen-AI commercial

The common belief is that the Toys “R” Us empire originally fell because of online shopping and video games. While those factors decreased their profits, it was a reckless and misguided attempt at going private that over-leveraged the company with insurmountable debt. For the past 15 years, Toys “R” Us has been circling the drain in dark corners of dead malls, barely even finding relevance at Christmastime. (Restructuring involves filling otherwise empty space in Macy’s department stores.)

But a surprise comeback—at least from a marketing standpoint—occurred in June at the Cannes Lions Festival. That’s where Toys “R” Us premiered a 66-second AI-generated commercial, which created using OpenAI’s still unreleased-to-the-public text-to-video software Sora, making this spot the first effort of its kind by a brand.

While the Toronto-based shy kids got to work directly with a beta version of Sora for its short film air head, the Toys “R” Us effort was created by Native Foreign, a creative agency and production house in Hollywood. Nik Kleverov, the chief creative officer and resident AI specialist previously described his delight with the software:

“Since I’ve gotten Sora, I’ve felt a genuine childlike creativity reawaken in me where I’m getting to explore ideas that have just been sitting in a vault because who’s going to give me the money or resources to explore some stupid ideas that I had. But it’s so fun and invigorating to do it.”

“The Origins of Toys ‘R’ Us” begins with the narrator asking if you ever wondered how the store came to be, with its mascot Geoffrey the Giraffe. A young Charles Lazarus is awakened by a long-necked animal toy to embark on a journey of wonderment and discovery: the founder is guided through sparkling halls, and led into a room filled with merchandise, as Geoffrey hands him the classic red car.

The spot ends with the breathy narrator concluding: “Toys ‘R’ Us was the dream of Charles Lazarus… may all of your dreams come true too,” while a real-life archival photo of an adult Charlie is smiling gleefully, with his face cradled into a life-sized version of Geoffrey. It’s a saccharine stink bomb that’s been widely panned by critics and creatives for being overly nostalgic, and bearing the tell-tale signs of hallucinogenic AI like inconsistent facial features and inconclusive object forms.

But the value of telling the Toys “R” Us story in this format wasn’t the technical prowess of Sora. In fact, the imperfections create an origin story anew, as the chain reimagines itself as a tech-enthused startup whilst retaining its historical roots. The imperfections even go so far as to create a sense of empathy with the plight of a retail icon trying to overcome its own current growing pains in public, for the virtue of generating wonder and joy for kids—not to mention adults who buy them stuff.

Nik Kleverov, CCO of Native Foreign and Kim Miller, CEO of Toys "R" Us at SXSW (BrandStorytelling)

But the brand storytelling strategy is so eagerly needed to revive the comatose brand. Three months earlier, Kleverov gave a presentation with Toys “R” Us CEO Kim Miller during the annual SXSW Festival in Austin, which was followed by an advertorial story about their forthcoming AI collaborations published at Forbes.

Brand storytelling is all the rage in marketing these days, because fewer consumers are seeking out a tactile engagement with new products, helpful salespeople or atmospheric retail stores. Brand storytelling simulates an emotional connection by triggering nostalgia through childlike wonder and a relatable origin story.

But this tactic is not enough to stand on its own—it goes hand-in-hand with technological advancement. That’s why the paid program piece from Forbes led with the AI angle as key to reviving Toys “R” Us. The technology seeks to make the audience feel like they’re in a partnership with young Charles Lazarus—we are embarking on this new experiential journey, feeling the same sense of wonder, trepidation and curiosity-tinged doubt as we explore this new realm together.

CEO Kim Miller even regards the giraffe mascot as an all-knowing spirit guide:

“Geoffrey is an iconic, beloved character who generates positive emotions in children and adults alike. He bridges a strong connection between the positive aspects of the history of this brand and the incredible potential that is unfolding before our eyes for the future. To me, he needs to be as big as Mickey Mouse is to Disney. So, we are building out his story. This project is giving light to how Geoffrey came to be.”

Creative director Nik Kleverov adds that the use of AI embodies an emancipation:

“Toys ‘R’ Us is experiencing a rebirth, in the same way that I think creative and the way we make content is experiencing one. We are coming to a point where we are no longer going to be held back from telling incredible stories because of traditional limitations. It seemed like the perfect brand to partner with on an AI-forward strategy in creating the definitive origin story for Geoffrey the Giraffe.”

So yes, it’s all quite cringey to watch. But it looks like we’re being taken on a journey—and this isn’t the end. I expect more Sora-generated commercials in time for the 2024 holiday season, which is also when OpenAI’s video model is set to be available to the public. Perhaps there’ll be some user-generated content similar to what Coca-Cola tried last year. But what I am certainly expecting is more efforts by Toys “R” Us to forge an emotional connection, and many more memories of Geoffrey.