What's Happening?
Mondelez International, a leading snack manufacturer, is adopting a generative AI tool to significantly reduce marketing content production costs by 30 to 50 percent. Developed in collaboration with Publicis
Groupe and Accenture, the tool aims to streamline the creation of marketing videos for Mondelez's cookie and chocolate brands. The company has invested over $40 million in this technology, which is expected to produce short TV ads ready for airing by next year's holiday season and potentially for the 2027 Super Bowl. Mondelez's initiative is part of a broader trend among consumer goods companies, including Kraft Heinz and Coca-Cola, to leverage AI for advertising to mitigate tariffs and shrinking shopper budgets. The AI-generated content is already being used on social media for brands like Chips Ahoy in the U.S. and Milka chocolate in Germany.
Why It's Important?
The implementation of AI in marketing by Mondelez International represents a significant shift in the advertising landscape for consumer goods companies. By reducing reliance on traditional advertising agencies, Mondelez can lower costs and accelerate product development cycles, potentially increasing competitiveness in a challenging economic environment. This move also highlights the growing importance of AI in enhancing operational efficiency and adapting to changing consumer preferences. As AI technology becomes more integrated into marketing strategies, companies can offer more personalized and engaging content, potentially boosting consumer engagement and sales. However, the use of AI-generated content also raises questions about authenticity and emotional connection, as seen in previous AI ad campaigns by Coca-Cola.
What's Next?
Mondelez plans to expand the use of its AI tool across various brands and regions, including Lacta chocolate and Oreo in Brazil, and Cadbury in the UK. The company is also set to utilize the tool for product pages on major e-commerce platforms like Amazon and Walmart in November. As Mondelez continues to refine its AI-generated content, it will be crucial to monitor consumer reactions and ensure compliance with ethical advertising standards. The company has established guidelines to prevent the promotion of unhealthy eating habits and offensive stereotypes, ensuring that human oversight remains integral to the process.
Beyond the Headlines
The adoption of AI in marketing by Mondelez could influence broader industry practices, encouraging more companies to explore AI-driven solutions for cost reduction and efficiency. This trend may lead to increased investment in AI technologies and partnerships with tech firms, potentially driving innovation in advertising and product development. Additionally, the ethical considerations surrounding AI-generated content could prompt discussions on industry standards and consumer protection, shaping the future of digital marketing.
