What's Happening?
Mondelez International, the maker of Oreo cookies, is implementing a new generative AI tool to cut marketing content production costs by 30% to 50%. Developed in collaboration with IT firm Accenture, the tool is expected to produce short TV ads ready
for airing by the next holiday season and potentially for the 2027 Super Bowl. Mondelez has invested over $40 million in this tool, which is part of a broader strategy to reduce reliance on advertising agencies and accelerate product development. The AI-generated content is already being used for social media campaigns in the U.S. and Germany, with plans to expand its use globally.
Why It's Important?
The adoption of generative AI by Mondelez represents a significant shift in how consumer goods companies approach marketing. By reducing costs and speeding up content production, Mondelez can allocate resources more efficiently and respond more quickly to market trends. This move also highlights the growing role of AI in the advertising industry, as companies seek to leverage technology to gain a competitive edge. The potential cost savings and increased efficiency could lead to broader adoption of AI tools across the industry, impacting how marketing strategies are developed and executed.
What's Next?
Mondelez plans to expand the use of its AI tool to other brands and markets, including Brazil and the UK. The company will continue to monitor the tool's effectiveness and ensure that content aligns with its marketing guidelines. As AI technology evolves, Mondelez and other companies may explore additional applications for AI in marketing and beyond, potentially transforming the industry landscape.
