Telstra – “Free Calls to Santa: Powered by Generative AI”
Submitted by OMD Australia
Case Study Summary
Faced with a crowded holiday marketplace and economic pressures that made consumers less responsive to promotions, Telstra — Australia’s largest telecom provider — needed more than discounts to boost year-end performance. The insight: while Santa appearances were down due to a post-COVID shortage, holiday traditions remained vital to family joy.
Telstra responded with a magical, tech-powered solution: turning 15,000 public payphones into direct lines to Santa using generative AI. Children could dial #HOHOHO for a free, personalized call. The AI-powered Santa understood names, answered questions, and held engaging, human-like conversations — trained on 500+ voice samples and fine-tuned through real-time transcript analysis. Google’s ethical filters ensured the experience remained safe and warm.
By blending nostalgia, emotion, and cutting-edge AI, Telstra rekindled public affection and surpassed sales goals during a tough retail season — all while bringing joy to over half a million children and reconnecting Australians with the brand in an unexpected way.
Key Insights
- Emotion at Scale: AI delivered thousands of magical, personalized conversations — making joy scalable without losing authenticity.
- Empathy-Led AI: The campaign prioritized warmth, trust, and recognition over product promotion.
- Public Access: Using payphones made the experience inclusive, ensuring no child was left out due to income or device access.
- Measurable Impact: Campaign awareness reached 55% of Australian households. Calls increased 400% year-on-year, and Telstra surpassed sales targets despite a 40% drop in category spending.
Why Was AI Used?
AI was essential to:
- Power real-time, interactive conversations with children nationwide.
- Personalize each interaction with name recognition and emotion-aware dialogue.
- Scale the experience during a peak season without human limitations.
- Continuously learn and improve based on real conversations and feedback.
How Did AI Work with Human Creativity?
- Human insights (from kids’ surveys) shaped Santa’s voice, topics, and tone.
- Creatives developed the narrative and media strategy around a child’s magical discovery.
- Real-time monitoring by Telstra ensured AI responses remained joyful, safe, and emotionally resonant.
- Human values — not efficiency — guided how AI was applied.
Could This Have Happened Without AI?
No. The personalization, scale, and consistency of the Santa interactions simply wouldn’t be feasible without AI. AI enabled:
- Thousands of simultaneous conversations.
- Tailored, voice-based interactions with emotional nuance.
- Safe, monitored dialogue with children — 24/7, nationwide.
