Chegg Aims to Rebound with New Mascot and Campaign as College Students Turn to AI

Facing increased competition from AI tools like ChatGPT, education technology company Chegg has released a new creative campaign, “Get a Grip,” which aims to alleviate academic stress for students ahead of the spring semester.

In collaboration with brand studio Unentitled, the brand also unveiled its new mascot Ace, an orange octopus that acts as a study buddy for students and represents the juggling nature of student life.

With “Get a Grip” and Ace, Chegg seeks to build an emotional connection with students and potential subscribers, said chief marketing officer Deena Bahri, who joined in March 2024.

“Students are feeling alone, overwhelmed, and unprepared for the job of being a college student,” she told ADWEEK. “That’s the key insight for us that drove our campaign and brand strategy. [Ace] is a strong piece of the puzzle to evoking this feeling of warmth and connection which is one of our objectives.”

AI’s effect on Chegg

Chegg offers personalized support, expert guidance, learning tools, and comprehensive study resources for college students. The company also has its own AI tools designed to help students learn beyond the classroom.

During the pandemic, the company saw record-high subscriber counts and stock prices when universities shifted to remote learning. However, since ChatGPT hit the scene in 2022, the company has lost over half a million subscribers and its stock is down 99% from early 2021.

In its latest financial results, Chegg reported over $212 million in losses during Q3 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, cutting additional jobs following its initial wave of cost-cutting restructuring back in June. 

In the report, chief executive officer Nathan Schultz singled out tools like Google AI Overviews (AIO) and ChatGPT as causes for its decline in subscribers and revenues.

“Recent advancements in the AI search experience and the adoption of free and paid generative AI services by students have resulted in challenges for Chegg,” he said. “These factors are adversely affecting our business outlook and are requiring us to refocus and adjust the size of our business.”

Looking ahead

In 2025, Chegg’s marketing strategy is focused on competing with external AI tools and prioritizing its customer and product experience.

“We are focused on helping students succeed on their learning journeys–not just getting them a quick answer but rather helping them to truly master the material,” said Bahri.

The company plans to continue launching creative campaigns featuring Ace to connect with consumers and highlight its brand capabilities. 

“Get a Grip” will run across streaming TV and social media.