What's Happening?
Mondelez, a leading snack manufacturer, is leveraging a new generative AI tool to significantly reduce the costs associated with producing marketing content. The company, known for brands like Cadbury
and Oreo, has collaborated with Publicis Groupe and Accenture to develop this tool, which is expected to cut production costs by 30 to 50 percent. The AI tool is currently being used to create content for social media campaigns in the U.S. and Germany, with plans to expand its use to other markets and products. Mondelez has invested over $40 million in this technology, aiming to streamline the creation of short TV ads and potentially use it for major events like the 2027 Super Bowl.
Why It's Important?
The adoption of AI in marketing by Mondelez highlights a growing trend among consumer goods companies to utilize technology for cost efficiency and faster product development. This move could set a precedent for other companies in the industry, potentially reshaping how marketing content is produced and distributed. By reducing reliance on traditional advertising agencies, Mondelez aims to navigate economic challenges such as tariffs and shrinking consumer budgets. The success of this initiative could lead to broader adoption of AI tools across the industry, impacting advertising strategies and agency dynamics.
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 is also preparing to use the tool for more complex video productions, which could further enhance its marketing capabilities. As the tool evolves, Mondelez will continue to monitor its output to ensure compliance with company guidelines and avoid potential pitfalls associated with AI-generated content.
