Mondelez invests US$40M in generative AI to slash marketing costs by up to 50%
Financially, this initiative addresses a critical challenge for global consumer packaged goods companies: creative development and production consume about 60% of advertising budgets, a staggering cost center ripe for innovation.
GLOBAL – Mondelez International, the global snacking giant behind brands like Oreo, Cadbury and Chips Ahoy, is making a bold move to transform its marketing operations by investing US$40 million in generative artificial intelligence (AI).
This investment is part of an ambitious strategy to dramatically cut marketing content production costs by 30% to 50%, while simultaneously boosting creativity and personalization capabilities on a global scale.
Mondelez’s proprietary AI platform is being developed in partnership with industry leaders Accenture and Publicis Groupe, emphasizing a tailored approach over off-the-shelf solutions.
This in-house content creation system is designed to automate and accelerate the traditionally costly, labour-intensive process of ideation, filming, editing, and versioning advertising content across multiple regions and platforms.
By training the AI on Mondelez’s extensive library of brand assets, consumer data, and past campaign performance, the system can generate highly customized ads that carry the unique tone and cultural resonance of iconic brands like Oreo and Cadbury.
Initially, the AI tool will focus on automating performance marketing and animated content, both of which are known for high production costs.
This allows Mondelez to rapidly produce and test a greater volume of hyper-targeted digital ads, optimizing effectiveness and market responsiveness.
Early implementations already include AI-generated social media content for Chips Ahoy and Milka, with plans to extend to AI-produced product pages and, ultimately, television commercials.
The company aims to debut its first AI-generated TV ads during the 2026 holiday shopping season, with aspirations for a Super Bowl spot in 2027 showcasing algorithm-driven creativity.
The AI system will also be used to design online product pages for Oreo cookies starting in November 2025.
Financially, this initiative addresses a critical challenge for global consumer packaged goods companies: creative development and production consume about 60% of advertising budgets, a staggering cost center ripe for innovation.
Cutting these expenses by half could free vast resources for reinvestment in media, product innovation, or shareholder returns, essentially redefining the economics of modern advertising.
Mondelez’s investment underscores the growing AI arms race within the CPG industry, pressuring competitors like Kraft Heinz and Coca-Cola to adopt similar technologies or risk losing market agility.
Beyond cost savings, the move symbolizes a paradigm shift towards a marketing ecosystem where human creativity is fused with machine intelligence to deliver faster, more effective, and more customized consumer engagements.
With generative AI at its core, Mondelez is set to reshape brand storytelling, consumer experience, and competitive positioning in a dynamic digital age.
Sign up to HERE receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
