Categories: Business

Oreo-maker Mondelez to use new generative AI tool to slash marketing costs

By Jessica DiNapoli NEW YORK (Reuters) -Snack maker Mondelez is using a new generative AI tool to cut costs for the production of marketing content by 30% to 50%, a senior executive told Reuters. The packaged food manufacturer began developing the tool last year with IT firm Accenture and expects that it will be capable of making short TV ads that would be ready to air as soon as next year's holiday season, and potentially for the 2027 Super Bowl, said Jon Halvorson, Mondelez’s global senior vice president of consumer experience. The Cadbury chocolate producer has invested more than $40 million in the tool, Halvorson said, adding that savings would grow if the tool is able to make more elaborate videos. Faced with tariffs and shrinking shopper budgets, Mondelez, like other consumer goods companies, is looking to adopt AI to slash fees paid to advertising agencies, and speed up how long it takes to develop and sell new products.  Rivals such as macaroni-and-cheese maker Kraft Heinz and Coca-Cola have also been trying out AI for ads. Coke in 2024 ran AI-created holiday ads, though the computer-created people in them were ridiculed by some consumers for lacking real emotion. Mondelez is not yet putting human likenesses in its AI-created content. It is using content generated by the new tool on social media for its Chips Ahoy cookies in the U.S. and Milka chocolate in Germany. An eight-second Milka video shows waves of chocolate rippling over a wafer, along with different backgrounds depending on which consumer Mondelez is targeting. The cost to do animations "is in the hundreds of thousands," Halvorson said. "This type of set-up is orders of magnitude smaller." In the U.S., Oreo will use the tool for product pages on Amazon and Walmart in November. Mondelez plans to use the tool in the coming months for Lacta chocolate and Oreo in Brazil, and Cadbury in the UK, Halvorson said.  Tina Vaswani, vice president of digital enablement and data for the company, said humans will always check what the tool produces to avoid any mishaps. Mondelez has rules prohibiting highlighting unhealthy eating habits, vaping, over-consumption, emotionally manipulative language and the use of offensive stereotypes, according to a document shared by the Chicago-based company. (Reporting by Jessica DiNapoli in New York; Editing by Aurora Ellis)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

Indianews Syndication

Recent Posts

Prostate massage: Here's how to hit the 'male G-spot'

Berlin (dpa) - Most men likely see the prostate first of all as a source…

1 hour ago

RGIPT Welcomes New Batch at Orientation Programme 2026

Focus on Experiential Learning, Innovation and Industry Readiness Jais [Amethi], August 10: Rajiv Gandhi Institute…

1 hour ago

India's Zee Entertainment posts quarterly profit drop on weak ad sales, rising costs

Aug 10 (Reuters) - India's Zee Entertainment Enterprises reported a 46.9% fall in quarterly profit…

2 hours ago

India's Zee Entertainment quarterly profit falls on weak advertising, higher costs

Aug 10 (Reuters) - India's Zee Entertainment Enterprises reported a 46.9% fall in first-quarter profit…

3 hours ago

Beyonce buys out LVMH's stake in SirDavis whisky

PARIS, Aug 10 (Reuters) - American pop star Beyonce has acquired full control of the…

3 hours ago

'Las Azules' Season 2 blends fact and fiction for tale of corruption and growth

LONDON, Aug 10 (Reuters) - Mexico's first female police force returns to action in the…

3 hours ago