Mondelez adopts generative AI to cut marketing costs by up to 50%
Snack giant Mondelez International, the maker of Oreo and Cadbury, is rolling out a new generative AI tool to significantly reduce its marketing production costs by 30% to 50%, according to a senior company executive.
The company partnered with Accenture to develop the tool, investing over $40 million. The system can already generate short video ads and is expected to produce fully broadcast-ready TV commercials by next year’s holiday season, and possibly for the 2027 Super Bowl, said Jon Halvorson, Mondelez’s global senior vice president of consumer experience, News.Az reports, citing Reuters.
Facing rising tariffs and tightening consumer budgets, Mondelez joins other major brands like Kraft Heinz and Coca-Cola in using AI to lower ad expenses and speed up product development.
Currently, the tool is being used to create social media content for Chips Ahoy in the U.S. and Milka in Germany. An eight-second Milka video — showing waves of chocolate flowing over a wafer — can automatically adapt its visuals based on audience targeting.
In the U.S., Oreo will begin using AI-generated content for Amazon and Walmart product pages starting in November. Mondelez also plans to expand the tool’s use to Lacta and Oreo in Brazil, and Cadbury in the UK.
Despite the automation, Mondelez stresses that humans will continue to review AI-generated material to ensure ethical standards are met. The company prohibits content promoting unhealthy eating, vaping, over-consumption, or stereotypes.
“The cost to do animations is in the hundreds of thousands. This type of setup is orders of magnitude smaller,” Halvorson said.
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