Categories: Tech & Auto

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

Share
Published by
Indianews Syndication

Recent Posts

BRIEF-Tsingtao Brewery Scraps Deal To Acquire Liquor Firm

Oct 26 (Reuters) - Tsingtao Brewery Co Ltd: * SAYS IT SCRAPPED DEAL TO ACQUIRE…

48 seconds ago

Bencic tames Noskova to win Tokyo title 10 years after heartbreak

VIDEO SHOWS: HIGHLIGHTS OF THE WTA PAN PACIFIC OPEN FINAL BETWEEN BELINDA BENCIC AND LINDA…

3 minutes ago

US, VIETNAM JOINT STATEMENT: WILL SEEK TO FINALISE AGREEMENT IN COMING WEEKS

US, VIETNAM JOINT STATEMENT: WILL SEEK TO FINALISE AGREEMENT IN COMING WEEKS (The article has…

11 minutes ago

Bencic tames Noskova to win Tokyo title 10 years after heartbreak

VIDEO SHOWS: HIGHLIGHTS OF THE WTA PAN PACIFIC OPEN FINAL BETWEEN BELINDA BENCIC AND LINDA…

14 minutes ago

Motorcycling-Alex Marquez wins Malaysia MotoGP ahead of Acosta and Mir

SEPANG, Oct 26 (Reuters) - Gresini Racing's Alex Marquez won the Malaysian Grand Prix on…

20 minutes ago

UPDATE 5-La Liga Summaries

Oct 26 (OPTA) - Summaries for the La Liga on Saturday (start times are CET)…

25 minutes ago