What's Happening?
Mondelez International is implementing a generative AI tool to reduce marketing content production costs by 30% to 50%. Developed in collaboration with Publicis Groupe and Accenture, the tool is expected to produce short TV ads and social media content for
brands like Chips Ahoy and Milka. Mondelez has invested over $40 million in this technology, aiming to streamline its advertising processes and adapt to changing consumer behaviors. The company plans to use the AI-generated content for various marketing campaigns, including product pages on major retail platforms.
Why It's Important?
The use of generative AI in marketing represents a significant shift in how companies approach advertising, offering potential cost savings and increased efficiency. By leveraging AI, Mondelez can produce high-quality content at a fraction of the traditional cost, allowing for more agile and responsive marketing strategies. This move could set a precedent for other consumer goods companies, encouraging broader adoption of AI in advertising. However, it also raises questions about the impact on creative jobs and the authenticity of AI-generated content.
What's Next?
Mondelez plans to expand the use of its AI tool across more brands and markets, potentially influencing the broader advertising industry. As the technology matures, it may lead to more personalized and targeted marketing campaigns, enhancing consumer engagement. The company will likely continue to refine the tool's capabilities, ensuring it aligns with brand values and consumer expectations.
