GLOBAL – Mondelez International’s Transformative Investment in AI
Mondelez International, the renowned purveyor of popular snack brands such as Oreo, Cadbury, and Chips Ahoy, is embarking on a transformative journey by committing US$40 million to generative artificial intelligence (AI).
This substantial investment is emblematic of an ambitious vision aimed at reducing marketing content production expenses by an impressive 30% to 50%, while simultaneously enhancing creativity and personalization across its global markets.
In collaboration with industry titans Accenture and Publicis Groupe, Mondelez is developing a proprietary AI platform that prioritizes custom solutions over generic alternatives.
This innovative in-house content generation system seeks to automate and expedite the historically expensive and laborious processes involved in ideation, filming, editing, and versioning advertising content across diverse markets.
By leveraging Mondelez’s extensive repository of brand assets, consumer insights, and historical campaign data, the AI system is poised to create highly tailored advertisements that embody the distinctive tone and cultural relevance of beloved brands like Oreo and Cadbury.
Initially, the AI tool will emphasize the automation of performance marketing and animated content, both notorious for their elevated production costs.
This strategic focus enables Mondelez to swiftly generate and evaluate a larger array of hyper-targeted digital ads, thereby optimizing effectiveness and enhancing market responsiveness.
Preliminary implementations have already yielded AI-generated social media content for Chips Ahoy and Milka, with future plans to include AI-crafted product pages and, ultimately, television commercials.
The company aspires to unveil its inaugural AI-generated television advertisements during the bustling 2026 holiday shopping season, with ambitions for a Super Bowl showcase in 2027 that demonstrates the creativity driven by algorithms.
Additionally, the AI framework will be tasked with designing online product pages for Oreo cookies starting in November 2025.
Financially speaking, this initiative tackles a significant challenge facing global consumer packaged goods firms: the creative development and production sector accounts for approximately 60% of advertising budgets—a considerable expense ripe for innovation.
A reduction of these costs by fifty percent could liberate substantial resources for reinvestment in media, product development, or shareholder returns, effectively redefining the financial landscape of contemporary advertising.
Mondelez’s investment highlights the escalating AI arms race within the consumer packaged goods sector, compelling competitors such as Kraft Heinz and Coca-Cola to adopt similar technological advancements or confront dwindling market agility.
Beyond the financial advantages, this initiative signifies a pivotal shift towards a marketing paradigm where human creativity converges with machine intelligence, fostering quicker, more effective, and more personalized consumer interactions.
With generative AI at its core, Mondelez is well-positioned to redefine brand storytelling, consumer experiences, and its competitive edge in an increasingly dynamic digital marketplace.
Source link: Millingmea.com.
