It was not racist. For these reasons.

- The ad depicts the people from the West Indies, who happen to have black skin, they were not depicting black people in general, hence the Jamaican style music and dancing.

- The West Indies cricket team was touring Australia at the time, and there is a strong rivalry between the two nations.

- The ad shows an Australian man in the cricket ground stands where West Indian people are sitting, and is awkward because he has no other Australian supporters nearby, akin to feeling intimidated if you were at a football game and you sat amongst supporters of the opposing team.

- Australians generally are not aware of the existence of the American stereotype that African Americans very much enjoy fried chicken more so than people of other races. The fact that is was KFC chicken in the ad and not another food is a coincidence.

I can tell you that this ad would be offensive if it were to be made by Americans and intended for an American audience, with the knowledge of the fried chicken stereo-type; but none of these things are true.