Mondelez, the renowned snack producer, has taken a step forward in leveraging artificial intelligence (AI) to reduce the expenses involved in creating marketing content by 30% to 50%. They have collaborated with advertising firm, Publicis Groupe, and IT company, Accenture, to develop an innovative AI tool.
Jon Halvorson, Mondelez’s global senior vice president of consumer experience, revealed the company’s ambitious plan to use this tool for generating short TV commercials which can be broadcasted as early as the upcoming holiday season. Notably, the company also has its sights set on creating ads for the 2027 Super Bowl.
The manufacturer of Cadbury chocolate has invested more than $40 million into this AI initiative. Halvorson predicts the tool’s ability to create more intricate videos would lead to an increase in cost savings.
Like many consumer goods companies dealing with tariffs and decreasing customer budgets, Mondelez is turning to AI as a solution to reduce the fees associated with advertising agencies and accelerate product development and sales cycles.
Other industry players such as Kraft Heinz, the maker of macaroni and cheese, and beverage giant Coca-Cola have also been experimenting with AI for their advertising efforts.
Mondelez has been using the AI-generated content on social media platforms for their Chips Ahoy cookies in the US and Milka chocolate in Germany. A short eight-second Milka video featuring waves of chocolate flowing over a wafer has been used, with varying backgrounds tailored to the specific consumer group being targeted.
The costs for creating such animations usually run into hundreds of thousands of dollars. With the new AI tool, however, Halvorson suggests the expenses are significantly lower.
In November, Mondelez’s Oreo will utilize the tool for product pages on Amazon and Walmart in the US. The company also plans to use the tool in the near future for its Lacta chocolate and Oreo lines in Brazil, as well as Cadbury in the UK.
Tina Vaswani, VP of digital enablement and data for the company, assures that the content created by the AI tool will be manually reviewed to prevent any potential issues. Mondelez follows strict rules against promoting unhealthy eating habits, vaping, overconsumption, emotionally manipulative language, and offensive stereotypes in their content.
How much has Mondelez invested in the AI tool?
Mondelez has invested over $40 million in the development of the AI tool.
How does Mondelez plan to use the AI-generated content?
Mondelez has utilized AI-generated content for social media promotions and plans to use it for TV commercials, as well as product pages on Amazon and Walmart.
What measures has Mondelez taken to ensure the quality of AI-generated content?
Every piece of content generated by the AI tool is reviewed by humans to prevent any inappropriate or offensive content, adhering to company guidelines.
