Major Food Giant Cuts Marketing Costs by Half Using AI Technology

Major Food Giant Cuts Marketing Costs by Half Using AI Technology

Mondelez, the snack food powerhouse behind Oreos and Cadbury chocolate, is revolutionizing how consumer brands approach advertising with a groundbreaking generative AI tool that slashes marketing production costs by 30% to 50%.

The company partnered with consulting firm Accenture to develop this cutting-edge technology, investing over $40 million in the project. The tool is already creating social media content for Chips Ahoy cookies in the U.S. and Milka chocolate in Germany, with plans to expand to TV commercials by next year's holiday season.

Key Benefits of AI-Powered Marketing

Cost Savings: Traditional animations cost "hundreds of thousands" of dollars, while this AI solution operates at "orders of magnitude smaller" expenses, according to Jon Halvorson, Mondelez's global senior vice president of consumer experience.

Speed to Market: The technology dramatically reduces the time needed to develop and launch new marketing campaigns, giving brands a competitive edge in fast-moving markets.

Targeted Content: An eight-second Milka video demonstrates the tool's ability to create personalized backgrounds and visuals based on specific consumer segments.

Industry-Wide Trend

Mondelez isn't alone in this AI marketing revolution. Competitors like Kraft Heinz and Coca-Cola are also experimenting with AI-generated advertisements. However, early attempts haven't always succeeded—Coca-Cola faced criticism in 2024 for AI-created holiday ads that consumers found emotionally flat.

Smart Safeguards in Place

The company maintains strict human oversight and content guidelines, prohibiting unhealthy eating promotion, offensive stereotypes, and emotionally manipulative language. This balanced approach ensures brand safety while maximizing AI efficiency.

With Oreo set to use the technology for product pages on Amazon and Walmart this November, and expansion planned for Brazil and UK markets, Mondelez is positioning itself at the forefront of the AI marketing transformation.

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