Few companies harness the festive season’s magic as effectively as Coca-Cola. The holidays have become synonymous with Coca-Cola’s iconic marketing campaigns, offering entrepreneurs a treasure trove of lessons in creativity, innovation, and boldness.

In 2023 alone, Coca-Cola allocated approximately $5 billion USD to marketing worldwide, with 20% of this budget directed toward the U.S. market (Statista). While the scale of this budget is staggering, Coca-Cola’s success isn’t merely tied to how much it spends—it’s a testament to its ingenious campaigns, particularly during the holiday season.

One of the most striking examples of this is Coca-Cola’s Holiday Campaign, which has become a global tradition, blending nostalgia, storytelling, and cultural significance.

The Origin of Coca-Cola’s Santa Claus

Coca-Cola’s association with Christmas dates back to the 1920s, when the company first began placing holiday advertisements in magazines. These early ads were focused on shopping and gift-giving, but they laid the foundation for what would become a groundbreaking cultural influence.

By 1931, Coca-Cola commissioned artist Haddon Sundblom to create a realistic, humanized depiction of Santa Claus. Before this, Santa was portrayed in various ways, ranging from a thin, elf-like figure to a bishop. Sundblom’s vision, inspired by the 1822 poem A Visit from St. Nicholas (commonly known as ‘Twas the Night Before Christmas), introduced the jolly, red-suited Santa we recognize today.

Sundblom’s Santa Claus appeared in Coca-Cola’s advertisements from 1931 to 1964, solidifying both Santa’s image and Coca-Cola’s association with the festive season. This innovative marketing strategy cemented Coca-Cola’s role in Christmas traditions.

From Nostalgia to Innovation

Over the years, Coca-Cola has stayed true to its tradition of holiday-themed campaigns while continuously innovating. The recurring image of Santa Claus in Coca-Cola ads evokes a sense of nostalgia, reinforcing the brand’s connection to the holidays.

Fast forward to 2023, Coca-Cola took a bold step by incorporating AI into its holiday campaigns, showcasing its ability to stay ahead of trends by launching a global holiday campaign titled “The World Needs More Santas.”

2023: The World Needs More Santas

In this campaign, Coca-Cola leveraged cutting-edge technology to create an interactive experience for its customers. The centerpiece was an AI-powered platform called Create Real Magic, which invited customers to design personalized digital greeting cards using iconic brand assets—most notably, Santa Claus. The campaign spanned more than 80 countries and achieved remarkable results. According to Coca-Cola’s 2023 quarterly report:

“In total, the holiday campaign experiences garnered approximately 9 billion impressions on social media. By combining the company’s global scale with local relevancy, the holiday activation contributed to Trademark Coca-Cola® volume and value share gains as well as unit case volume and transactions growth for both the quarter and the full year.”

Coca-Cola’s use of AI to engage customers on a personal level demonstrated how brands can combine tradition with innovation to drive growth and maintain cultural relevance.

2024: The Year of AI

If 2023 was Coca-Cola’s experiment with AI, 2024 marked a full embrace of this technology. This year, Coca-Cola recreated its classic “Holidays Are Coming” video, originally released in 1995, using generative AI.

The ad was produced using generative AI models like Leonardo, Luma, and Runway. While the campaign received mixed feedback—critics pointed out the limitations of generative AI in replicating realistic human figures and physics—it represented a bold step toward the future of marketing.

Despite the visual imperfections, Coca-Cola is setting the pace for how AI can transform advertising.

Lessons from Coca-Cola’s Marketing Success

Coca-Cola’s marketing campaigns offer valuable insights for entrepreneurs looking to elevate their brands. Here are five key lessons:

#1. Be Bold

Coca-Cola’s willingness to experiment with new ideas, from reimagining Santa Claus to embracing AI, is a testament to the power of boldness in marketing. Entrepreneurs must dare to innovate, even if the results aren’t always perfect.

#2. Take Advantage of Opportunities Like Holidays

The holiday season offers a unique chance to connect with audiences on an emotional level. Coca-Cola capitalized on this by making Christmas an integral part of its brand identity. Entrepreneurs can use holidays to create campaigns that resonate with customers’ emotions and traditions.

#3. Find Creative Ways to Use New Technologies

Coca-Cola’s integration of AI into its campaigns highlights the importance of staying ahead of technological trends. Entrepreneurs should explore emerging tools and platforms to find innovative ways to market their products or services.

#4. Focus on the Customer and Keep Them Engaged

Coca-Cola’s interactive campaigns, such as Create Real Magic, prioritize customer involvement. Entrepreneurs can follow this example by creating campaigns that encourage participation and build a sense of community.

#5. Create and Empower Your Community

Coca-Cola doesn’t just market to its audience—it builds a community of loyal customers who feel personally connected to the brand. Entrepreneurs should focus on fostering a sense of belonging among their customers, turning them into brand ambassadors.

The Coca-Cola Effect: Tradition Meets Innovation

Coca-Cola’s holiday campaigns are a masterclass in blending tradition with innovation. By creating an emotional connection through nostalgia and continuously pushing the boundaries of technology, Coca-Cola has become a marketing powerhouse.

For entrepreneurs, the key takeaway is clear: success lies in balancing creativity, boldness, and a deep understanding of your audience. Whether it’s leveraging AI or reinventing traditions, the lessons from Coca-Cola’s campaigns can inspire businesses to think bigger and connect with their customers in meaningful ways.

This holiday season, as Coca-Cola trucks roll into town with their iconic jingle, let their marketing genius remind us of the power of storytelling, innovation, and community.