Mondelēz International is taking a significant step in modernizing its marketing strategies by creating an in-house generative AI content creation platform. This project, developed in collaboration with Accenture and Publicis Groupe, aims to enhance the company’s ability to produce marketing content efficiently and effectively.
Expected to launch in early 2025, this platform will serve multiple markets, including the U.S., U.K., Germany, India, and Latin America. Jon Halvorson, the senior vice president of consumer experiences and digital commerce at Mondelēz, envisions this proprietary platform as a central element in the company’s future content generation efforts.
The initial focus of Mondelēz’s AI initiative will be on generating performance marketing content, with plans to gradually expand into more complex advertising formats, such as television commercials. This strategic decision reflects a considerable upfront investment aimed at reducing overall marketing costs.
By increasing the volume of content produced and leveraging AI for rapid optimization and personalization, Mondelēz hopes to create a more agile marketing environment that can respond effectively to market demands.
Mondelēz International Modernizes Marketing with In-House Generative AI Content Platform
Prior to launching its internal AI systems, Mondelēz has already conducted approximately 40 campaigns to explore the capabilities of AI in marketing. While specific outcomes related to cost savings have not been disclosed, Halvorson highlighted that previous personalization efforts have resulted in notable increases in return on investment (ROI).
Personalized campaigns have been shown to achieve 20-30% higher ROI, reinforcing the belief that AI-driven personalization can significantly enhance marketing performance and effectiveness.
Mondelēz allocates over 60% of its advertising and consumer promotion budget to creative development and production, indicating a significant opportunity for efficiency improvements through AI. Despite optimism about potential cost reductions, Halvorson refrained from providing concrete figures regarding expected savings or timelines.
He expressed a goal of improving the quality and effectiveness of advertising by 10-15% and reducing non-working costs by a similar margin, emphasizing that the adoption of AI is intended to create a larger volume of more personalized content at a lower cost.
The shift towards AI-driven marketing is not isolated to Mondelēz; companies like Klarna have also reported substantial savings by incorporating AI into their marketing strategies. However, this trend raises concerns about potential job losses and the impact on agency-client dynamics.
As marketing professionals face increased pressure to deliver more with fewer resources, the integration of AI technology has become increasingly appealing. Nonetheless, Halvorson reassured that human oversight will remain integral to their AI processes, highlighting the need for a balanced approach that combines creativity with technological advancements.
