Is it still prevalent?

On Wednesday class, we talked about the black representation, and discussed for a few moment about the problem related to racism. To be honest, I do not know the seriousness of racism. I grew up in a single-race nation, so I have never experienced the race problem. But as learning English and getting to know the society of U.S, I learned that the racism is one of the most prevelant problems in the country, but also learned that with the efforts of a lot of (black) people, the problem has been solved somewhat and the condition is getting better gradually (nowadays, outrageous racism can not be (also must not be) found). However, the Old Navy advertisement was a suprise.

Basically, I do not understand the purpose of the advertisement. It is not an advertisement in 1960s (the time when the racism was relatively prevelant). But the ad contains quite obviously racist thinking. I even felt like they wanted to mock and humiliate the black. But however, if they really tried to humiliate the people, is the concept acceptable in the 21st century?? Did people accept this ad?? And one thing that Old Navy should know is that they should have thought about their main customer. Old Navy is not a high fashion shop. Rather, it is relatively cheap, and affordable. So,who might be their main customer? I am not making a racist comment (though it might seem to. I am sorry!!!), but rather than upper class white people, lower class people, including black people ( I am not limiting only black people to lower class. The class includes many different races, of course, but the ratio of black people in the class is relatively high.) would buy at the shop. But I am sure that Old Navy knew this, but I am still unsure that why did they make this ad even thought they knew that fact. This ad is a backward movement toward the racism problem (which has made an improvement really hard for 30~40 years).