TLDR: Mondelez International, the maker of popular brands like Oreo and Cadbury, is deploying a new generative AI tool, developed in collaboration with Accenture, to achieve significant reductions in its marketing content creation expenses, aiming for savings of 30% to 50%. The company has invested over $40 million in this initiative, with plans for the AI to produce broadcast-ready TV ads by the next holiday season and potentially Super Bowl commercials by 2027. This strategic move is driven by pressures from tariffs and tightening consumer budgets, and follows successful initial applications in social media campaigns for Chips Ahoy and Milka.
Mondelez International, the global snacking giant behind iconic brands such as Oreo and Cadbury, is making a substantial leap into artificial intelligence with the introduction of a new generative AI tool designed to revolutionize its marketing content creation. The company anticipates this innovative technology will slash marketing expenditures by an impressive 30% to 50%.
The development of this advanced AI tool is the result of a year-long collaboration between Mondelez and consulting firm Accenture. The snack food conglomerate has committed over $40 million to this project, underscoring its strategic importance.
According to Jon Halvorson, Mondelez’s Senior Vice President of Global Consumer Experience, the generative AI is projected to be capable of producing television advertisement clips ready for broadcast by the upcoming holiday season. Looking further ahead, Halvorson indicated that the AI could potentially be utilized for creating high-profile Super Bowl advertisements as early as 2027. He also noted that as the AI’s capabilities evolve to generate more complex video content, the potential for even greater cost savings is expected to increase.
This aggressive adoption of AI is a direct response to prevailing economic challenges, including tariff pressures and shrinking consumer budgets, which are impacting consumer goods companies globally. By integrating AI into its marketing operations, Mondelez aims to reduce reliance on traditional advertising agencies, thereby cutting associated fees, and to accelerate both product development and market entry timelines.
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Mondelez is not alone in this endeavor; competitors such as Kraft Heinz and Coca-Cola have also begun exploring and implementing AI for their advertising creation processes. Mondelez has already successfully piloted AI-generated content in its social media marketing efforts for Chips Ahoy in the United States and Milka chocolate in Germany. The company plans to extend the use of this AI technology to marketing campaigns for its flagship brands, Oreo and Cadbury, across various international markets in the near future.
