Mondelez Capitalizes on AI to Revolutionize Marketing Strategies
By Jessica DiNapoli, NEW YORK (Reuters) – Mondelez, the renowned snack manufacturer, has embarked on an innovative journey by integrating a generative AI tool aimed at reducing marketing content production costs by an impressive 30% to 50%, according to insights from a senior executive.
The company, well-known for its Cadbury chocolate, initiated the development of this groundbreaking tool in collaboration with the IT giant Accenture last year.
Jon Halvorson, Mondelez’s global senior vice president of consumer experience, indicated that the AI is anticipated to generate short television advertisements, which could be ready for airing as early as the upcoming holiday season, with aspirations for use during the 2027 Super Bowl.
Halvorson disclosed that Mondelez has allocated over $40 million to this venture, suggesting that potential savings could increase significantly as the AI tool is honed to produce more intricate videos.
In response to tariffs and diminishing consumer spending, Mondelez, akin to its counterparts in the consumer goods sector, is harnessing artificial intelligence to curtail expenditures associated with advertising agencies and to expedite the development and marketing of new products.
Competing brands, including Kraft Heinz and Coca-Cola, are also exploring AI-driven advertising solutions. Notably, Coca-Cola utilized AI-generated holiday ads in 2024, although reactions were mixed, with some consumers critiquing the digital personas for their apparent lack of genuine emotion.
Currently, Mondelez’s AI-generated content does not feature human likenesses; instead, it is being applied on social media platforms for its Chips Ahoy cookies in the United States and Milka chocolate in Germany.
One illustrative example involves an eight-second Milka video showcasing waves of chocolate cascading over a wafer, with varying backgrounds tailored to different consumer demographics.
Halvorson remarked that costs associated with traditional animations often reach “the hundreds of thousands,” in stark contrast to the significantly lower expenses tied to the AI setup.
In the United States, Oreo will leverage the AI tool for product pages on Amazon and Walmart starting in November. Moreover, plans are in place for its application with Lacta chocolate and Oreo in Brazil, as well as Cadbury in the UK, as revealed by Halvorson.
Tina Vaswani, the vice president of digital enablement and data at Mondelez, assured stakeholders that all outputs from the AI tool would undergo human oversight to mitigate any potential errors.
Moreover, the company has established stringent guidelines to prevent the promotion of unhealthy eating habits, vaping, excessive consumption, emotionally coercive language, and the perpetuation of offensive stereotypes, as detailed in a company document.
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