Chegg aims to bounce back with new mascot and campaign as students turn to AI
Facing increased competition from AI tools like ChatGPTEducational technology company Chegg has launched a new creative campaign, “Get a Grip,” that aims to ease students’ academic stress ahead of the spring semester.
In collaboration with the brand studio Without rightsthe brand also revealed its new mascot Ace, an orange octopus who acts as a study companion for students and represents the juggling nature of student life.
With “Get a Grip” and Ace, Chegg is seeking to make an emotional connection with students and potential subscribers, said Deena Bahri, chief marketing officer, who joined the company in March 2024.
“Students feel alone, overwhelmed and unprepared for student work,” she told ADWEEK. “For us, this was the key information that drove our campaign and brand strategy. [Ace] is an important piece of the puzzle to evoke that feeling of warmth and connection that is one of our goals.
The effect of AI on Chegg
Chegg offers personalized support, expert advice, learning tools, and comprehensive study resources for students. The company also has its own AI tools designed to help students learn beyond the classroom.
During the pandemic, the company saw record subscriber numbers and stock prices as universities moved to remote learning. However, since ChatGPT came onto the scene in 2022, the company has lost more than half a million subscribers and its stock is down 99% from the start of 2021.
In his latest financial resultsChegg reported more than $212 million in losses during the third quarter of 2024, totaling $830 million in losses for the year through September 2024. The company also announced in November that it plans to lay off 21% of its staff, thereby eliminating additional jobs following its first wave of cost-cutting restructuring in June.
In the report, CEO Nathan Schultz cited tools like Google AI Overviews (AIO) and ChatGPT as causes for declining subscriber numbers and revenue.
“Recent advancements in the AI search experience and adoption of free and paid generative AI services by students have brought challenges for Chegg,” he said. “These factors are negatively affecting our business outlook and requiring us to refocus and adjust the size of our business. »
Looking to the future
In 2025, Chegg’s marketing strategy focuses on competing with external AI tools and prioritizing customer and product experience.
“We strive to help students succeed in their learning journey, not just by providing them with a quick answer, but rather by helping them truly master the material,” Bahri said.
The company plans to continue launching creative campaigns featuring Ace to connect with consumers and highlight its brand capabilities.
“Get a Grip” will be broadcast on streaming television and social media.
