Mondelez to Use New Generative AI Tool to Lower Marketing Costs

Source: CIO Magazine

Mondelez has initiated the use of a generative AI tool designed to cut marketing content production costs substantially. According to Jon Halvorson, Global Senior Vice President of Consumer Experience, the company began developing this tool last year in partnership with Publicis Groupe and Accenture. The objective is to facilitate the creation of short TV advertisements ready for airing during the Christmas 2026 campaign and possibly for the Super Bowl in 2027. The estimated cost of the tool is around 40 million dollars, with the prospect of increased savings if it can produce more complex videos.

With this new technology, Mondelez aims to reduce advertising agency fees and accelerate new product development timelines, particularly as rising tariffs are increasing costs and consumers are tightening their budgets. Competitors like Kraft Heinz and Coca-Cola have already experimented with AI in advertising; Coca-Cola aired AI-generated Christmas ads in 2024, though some critiques revolved around the lack of emotional depth in AI-created characters. Currently, Mondelez is utilizing the AI tool for social media content for its Chips Ahoy cookies in the U.S. and Milka chocolate in Germany, producing targeted animations at a fraction of standard costs. Halvorson mentioned that traditional animation costs can reach hundreds of thousands of dollars, making the AI solution much more cost-effective.

👉 Pročitaj original: CIO Magazine