Mondelez Leverages AI to Reduce Advertising Expenses

Post by : Bianca Suleiman

Snack conglomerate Mondelez International, known for its iconic brands such as Oreo and Cadbury, is embracing generative AI to revolutionize its advertising methods, aiming to slash production costs by 30% to 50%.

The company has collaborated with Publicis Groupe and Accenture, investing upwards of $40 million to develop a bespoke AI system designed to expedite the marketing process, making it more economical and responsive to consumer demands.

Jon Halvorson, Mondelez’s global senior vice president of consumer experience, highlighted that the AI technology is on track to produce brief television advertisements by the upcoming holiday season, as well as targeting the 2027 Super Bowl.

From Social Media Campaigns to Major Events

The AI solution is currently being trialed across its prominent brands. In the United States, Mondelez has initiated the use of AI-generated content for Chips Ahoy!, while in Germany, Milka's campaigns present flowing chocolate waves over wafers with viewer-tailored backgrounds.

The financial advantages are substantial. Traditional animations, once costing hundreds of thousands, can now be produced at a reduced price point. Next, Oreo will implement this tool for its product pages on platforms such as Amazon and Walmart in November, followed by Lacta chocolate and Oreo in Brazil, and Cadbury in the UK.

Ensuring Speed with Ethical Responsibility

While competitors like Coca-Cola and Kraft Heinz are exploring AI in advertising, Mondelez emphasizes a cautious approach. All AI-generated material undergoes human review to mitigate errors and misleading visual representations.

The company's internal policies prohibit portrayals of unhealthy eating behaviors, vaping, emotional exploitation, or negative stereotypes. Mondelez is committed to leveraging AI in a creative yet accountable manner.

As consumer brands worldwide face stringent budgets and evolving digital landscapes, Mondelez’s venture into AI may reshape the food industry’s storytelling—making it quicker, more affordable, and more intelligent than ever.