Editorial illustration for Mondelez Plans AI-Generated TV Ads to Trim Marketing Expenses in 2024
Mondelez Taps AI to Slash TV Ad Production Costs
Mondelez to Deploy Generative AI Next Year for TV Ads, Cutting Marketing Costs
The advertising world is bracing for another seismic shift as consumer brands experiment with generative AI. Mondelez International, the snack powerhouse behind global favorites like Oreo, is preparing to wade into uncharted creative territory by using artificial intelligence for television commercials.
Marketing budgets have long been prime targets for corporate cost-cutting. But Mondelez's approach suggests something more strategic: using AI not just to trim expenses, but to fundamentally reimagine content production.
The move comes with significant potential, and risk. Consumer reactions to AI-generated advertising have been mixed, with some campaigns sparking intense public debate about authenticity and creative labor. Brands like Coca-Cola have already encountered pushback when testing AI-driven marketing approaches.
For Mondelez, the stakes are high. Their planned AI-generated TV ads represent more than a technological experiment, they're a calculated bet on the future of marketing efficiency. Will audiences embrace these algorithmic creations, or reject them as soulless imitations of human creativity?
Snacking giant Mondelez is using generative AI to slash marketing costs and is preparing to release AI-generated TV ads next year, a senior executive told Reuters. Oreo-maker Mondelez will use AI for TV ads next year It’s a risk given fierce backlash some AI ads have provoked, like Coca-Cola’s 2024 Christmas videos. It’s a risk given fierce backlash some AI ads have provoked, like Coca-Cola’s 2024 Christmas videos. Jon Halvorson, Mondelez’s global senior vice president of consumer experience, said the company has spent more than $40 million on an AI video tool that can halve production costs.
Mondelez is stepping into uncharted marketing territory with its AI-generated TV ad strategy. The snack giant seems determined to trim expenses by using generative AI, despite potential consumer pushback.
The company's move comes with notable risks. Recent AI advertising attempts, like Coca-Cola's controversial Christmas videos, suggest public sentiment remains mixed about machine-created content.
Jon Halvorson, Mondelez's global senior vice president of consumer experience, appears undeterred by potential backlash. His team seems ready to test the boundaries of AI in creative production, prioritizing cost reduction over traditional marketing approaches.
Oreo's parent company isn't just experimenting, they're planning a full-scale deployment of AI-generated television advertisements in 2024. This signals a significant shift in how major brands might approach marketing content in the near future.
Still, questions linger about audience reception. Will consumers embrace AI-crafted storytelling, or will they reject these algorithmically generated narratives? Mondelez's gamble could provide critical insights into the intersection of artificial intelligence and brand communication.
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Common Questions Answered
How does Mondelez plan to use generative AI in their marketing strategy for 2024?
Mondelez intends to generate television commercials using artificial intelligence as a method to reduce marketing expenses. The company aims to leverage AI technology to create more cost-effective advertising content across their brand portfolio, including popular products like Oreo.
What risks is Mondelez acknowledging with their AI-generated TV ad approach?
Mondelez recognizes potential consumer backlash, as demonstrated by previous controversial AI advertising attempts like Coca-Cola's 2024 Christmas videos. The company is aware that public sentiment remains mixed about machine-created marketing content, which could impact brand perception and consumer engagement.
Who at Mondelez is leading the company's generative AI marketing initiative?
Jon Halvorson, Mondelez's global senior vice president of consumer experience, is spearheading the company's AI-driven marketing strategy. Halvorson is overseeing the exploration of generative AI as a potential tool for creating more efficient and cost-effective advertising content.