Mondelez Leverages Generative AI to Transform Marketing Strategies

Mondelez International, the parent company of popular snack brands such as Oreo, Cadbury, and Chips Ahoy, is implementing a new generative AI tool aimed at reducing marketing production costs by 30% to 50%. Developed in collaboration with Publicis Groupe and Accenture, this innovative tool is expected to produce broadcast-ready video advertisements by the 2026 holiday season and potentially for the 2027 Super Bowl. The company has invested over $40 million in this initiative, reflecting a strategic shift towards automation in response to rising costs and changing consumer behaviors.

Mondelez Leverages Generative AI to Cut Marketing Costs by Up to 50%QuartzReuters

Currently, Mondelez is utilizing the AI tool to create digital content for its Chips Ahoy cookies in the United States and Milka chocolate in Germany. For instance, an AI-generated advertisement for Milka features visually appealing chocolate waves that adapt to various consumer demographics. In November, the tool will also be employed to enhance product pages for Oreo on Amazon and Walmart, with plans to expand its use to Lacta chocolate in Brazil and Cadbury in the UK.

Mondelez Leverages Generative AI to Cut Marketing Costs by Up to 50%

The adoption of AI in marketing is not unique to Mondelez; competitors like Coca-Cola and Kraft Heinz are also exploring similar technologies to streamline their advertising efforts. Coca-Cola's previous AI-generated holiday ads faced criticism for lacking emotional depth, highlighting the mixed reception of AI in creative fields. Despite these challenges, Mondelez aims to differentiate itself by adhering to ethical guidelines that prohibit the promotion of unhealthy habits and stereotypes in its AI-generated content.

Mondelez Leverages Generative AI to Cut Marketing Costs by Up to 50%

Tina Vaswani, Mondelez's vice president of digital enablement and data, emphasized the importance of human oversight in the AI content creation process. All outputs from the generative AI tool will undergo review to ensure compliance with the company's ethical standards and to prevent potential missteps in messaging. This commitment to responsible AI use is part of Mondelez's broader strategy to maintain brand integrity while leveraging technological advancements.

Mondelez Leverages Generative AI to Cut Marketing Costs by Up to 50%

The move towards generative AI in marketing reflects a significant trend within the industry, as companies seek to reduce reliance on traditional advertising agencies and cut costs. A Boston Consulting Group survey indicated that 71% of chief marketing officers plan to invest at least $10 million annually in generative AI over the next three years. This shift could reshape the advertising landscape, making it more efficient and cost-effective while also raising questions about the future role of human creativity in marketing.

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• “This type of setup is orders of magnitude smaller.” — Jon Halvorson, Mondelez’s Global Senior Vice President of Consumer Experience

Reuters

• “Tina Vaswani, vice president of digital enablement and data for the company, said humans will always check what the tool produces to avoid any mishaps.” — Tina Vaswani, Vice President of Digital Enablement and Data

Reuters

Mondelez's investment in generative AI marks a pivotal moment in the intersection of technology and marketing. As the company prepares to roll out AI-generated advertisements, it sets a precedent for cost efficiency and ethical standards in digital marketing, potentially influencing industry practices in the years to come.

Mondelez Leverages Generative AI to Cut Marketing Costs by Up to 50%