oreo-maker mondelez will use ai for tv Mondelez, the company behind popular snack brands like Oreo and Chips Ahoy, is set to leverage generative AI technology to enhance its marketing strategies and reduce costs.
oreo-maker mondelez will use ai for tv
Mondelez’s Strategic Move into AI-Generated Advertising
In a significant shift towards modernizing its advertising approach, Mondelez International has announced plans to utilize generative AI for its television advertisements starting next year. This initiative aims to streamline production processes and significantly cut marketing expenses. Jon Halvorson, the global senior vice president of consumer experience at Mondelez, revealed this information in a recent interview with Reuters.
Investment in AI Technology
Mondelez has committed over $40 million to develop an AI video tool designed to enhance the efficiency of ad production. According to Halvorson, this innovative tool has the potential to reduce production costs by up to 50%. Such a drastic reduction in expenses could allow Mondelez to allocate resources more effectively across its various brands, potentially leading to increased market share and profitability.
Halvorson indicated that the first AI-generated TV ads are expected to be ready for airing in time for the 2026 holiday season, with aspirations for them to debut during the highly coveted 2027 Super Bowl. This timeline underscores the company’s ambition to integrate cutting-edge technology into its marketing strategies while capitalizing on high-visibility advertising opportunities.
Current Applications of AI in Mondelez’s Marketing
Mondelez is not waiting until 2026 to start using AI in its marketing efforts. The company has already begun employing the AI video tool to create social media content for its well-known brands, including Chips Ahoy cookies and Milka chocolate. This early adoption demonstrates Mondelez’s commitment to embracing technological advancements to enhance its consumer engagement strategies.
Future Plans for Oreo
In November, Mondelez plans to utilize the AI tool to design online product pages specifically for Oreo cookies. This initiative reflects the company’s understanding of the importance of digital presence in today’s market. By optimizing online product pages through AI, Mondelez aims to improve user experience and drive sales through enhanced digital marketing efforts.
The Broader Context of AI in Advertising
The move by Mondelez to incorporate AI into its advertising strategy is part of a broader trend among companies looking to reduce marketing expenditures. As businesses face increasing pressure to optimize budgets, many are turning to AI technologies to streamline their advertising processes. However, the effectiveness of AI-generated content has been met with mixed reviews.
Challenges and Criticisms of AI-Generated Ads
While the potential for cost savings is significant, the reception of AI-generated advertisements has been far from universally positive. For instance, Coca-Cola’s AI-generated Christmas ads last year faced substantial backlash online, with critics labeling them as “soulless” and “creepy.” Such reactions highlight the challenges companies face when relying on AI to create content that resonates with consumers on an emotional level.
Critics argue that while AI can efficiently produce content, it often lacks the human touch that makes advertising relatable and engaging. This sentiment raises questions about the balance between cost-cutting measures and maintaining the quality and emotional impact of marketing campaigns.
Stakeholder Reactions and Industry Implications
The decision to integrate AI into advertising strategies has elicited varied responses from stakeholders across the industry. Marketing professionals express a mix of excitement and skepticism regarding the implications of AI-generated content.
Marketing Professionals’ Perspectives
Many marketing experts view the adoption of AI as a necessary evolution in the industry. They argue that as consumer preferences shift and digital marketing becomes increasingly competitive, companies must leverage technology to remain relevant. The ability to produce high-quality content at a fraction of the cost could provide a significant competitive advantage.
However, there are concerns about the potential over-reliance on AI. Some professionals warn that if companies prioritize efficiency over creativity, they risk diluting their brand identity and alienating consumers. The challenge lies in finding the right balance between leveraging AI for efficiency and ensuring that the content produced aligns with the brand’s values and resonates with the target audience.
Consumer Reactions
Consumer reactions to AI-generated content are also critical to consider. As brands increasingly rely on technology to create marketing materials, consumers may develop perceptions about the authenticity and relatability of these ads. If AI-generated content fails to connect with audiences on an emotional level, it could lead to disengagement and a decline in brand loyalty.
Looking Ahead: The Future of AI in Advertising
As Mondelez prepares to roll out AI-generated ads, the company is at the forefront of a significant transformation in the advertising landscape. The implications of this shift extend beyond cost savings; they also raise important questions about creativity, authenticity, and consumer engagement.
Potential for Innovation
Despite the challenges, the potential for innovation in advertising through AI is immense. With advancements in machine learning and natural language processing, AI technologies are becoming increasingly sophisticated. This evolution may lead to more personalized and targeted advertising strategies that resonate with consumers on a deeper level.
Furthermore, as AI continues to evolve, it may enable brands to experiment with new formats and creative approaches that were previously unimaginable. The ability to analyze consumer data in real-time could allow companies to tailor their messaging and content to meet the specific needs and preferences of their audience.
Ethical Considerations
As the industry embraces AI, ethical considerations will also come to the forefront. Questions about data privacy, algorithmic bias, and the potential for manipulation in advertising will require careful attention. Brands must navigate these challenges while ensuring that their use of AI aligns with ethical standards and consumer expectations.
Conclusion
Mondelez’s decision to incorporate generative AI into its advertising strategy marks a pivotal moment in the evolution of marketing. While the potential for cost savings and efficiency is significant, the company must also navigate the complexities of consumer engagement and brand authenticity. As the advertising landscape continues to evolve, Mondelez’s approach will serve as a case study for other companies considering similar strategies in the future.
Source: Original report
Was this helpful?
Last Modified: October 24, 2025 at 7:38 pm
3 views
