Mondelez to Deploy Generative AI Next Year for TV Ads, Cutting Marketing Costs
Mondelez, the snack-maker behind Oreo, says it will start airing TV spots that were put together by generative AI sometime next year, according to Reuters. A senior executive told us the idea is to shave off marketing costs while still getting fresh ads on the screen. The plan leans on AI that can spin up scripts, visuals and voice-overs without the usual agency back-and-forth, which should make the whole thing cheaper.
Of course, it isn’t risk-free. Coca-Cola’s AI-driven campaign in 2024 drew a pretty loud backlash, a reminder that viewers can sniff out a machine-made message and push back. So Mondelez is basically betting that the savings will outweigh any negative reaction.
The tech looks impressive, but the company will have to tread carefully with public sentiment. Those AI-crafted spots will be the first real test of whether generative tools can churn out brand-safe content for a fraction of the normal price tag.
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.
Will AI really shave off Mondelez’s ad budget? The firm says generative tools will run its TV spots next year, and it hopes the move will trim marketing spend. Jon Halvorson, the global senior vice-president of consumer experience, told Reuters it’s part of a broader push to streamline creative workflows.
Still, the timing is odd - just weeks after Coca-Cola’s 2024 Christmas videos drew a sharp backlash. If shoppers push back again, any cost savings could be wiped out by brand damage. The tech can crank out broadcast-ready material, but whether audiences will accept it is still up in the air.
Mondelez’s gamble spotlights the clash between efficiency and authenticity that many advertisers now wrestle with. As the first AI-generated spots hit the air, we’ll be watching to see if lower costs actually keep viewers engaged. The company will start testing the format on key brands, beginning with Oreo.
Internally, teams will rely on prompts and datasets built over the past year, though the exact training process stays under wraps. Critics warn that without human oversight, tone and cultural nuance might slip, opening the door to consumer pushback. Meanwhile, other advertisers are keeping a close eye on the experiment for clues about how far AI-crafted TV creative can scale.
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Common Questions Answered
How will Mondelez use generative AI to create TV commercials next year?
Mondelez will deploy generative AI tools to draft the scripts, visuals, and voice-overs for its TV ads, bypassing the traditional agency pipeline. This approach is intended to create a leaner cost structure for producing on-air creative content.
What risk does Mondelez acknowledge in using AI for its TV ads?
Mondelez acknowledges the risk of a fierce consumer backlash, similar to the reaction provoked by Coca-Cola's AI-driven 2024 Christmas videos. This potential negative response is a significant consideration in their rollout plan.
What is Jon Halvorson's role in Mondelez's AI advertising initiative?
Jon Halvorson is Mondelez's global senior vice president of consumer experience, and he stated that the move to AI is part of a broader effort to streamline creative workflows. He told Reuters that the goal is to trim marketing spend while keeping creative output on-air.
What specific cost benefit does Mondelez expect from using generative AI for ads?
The company expects the use of generative AI to lead to a noticeable cut in marketing costs by creating a leaner cost structure. This is achieved by using AI to handle tasks like scriptwriting and visual creation without the usual agency expenses.