AI impacts the advertising industry! Oreo’s parent company has invested $40 million in AI tools, reducing marketing content production costs by 30% to 50%.

AI impacts the advertising industry! Oreo’s parent company has invested $40 million in AI tools, reducing marketing content production costs by 30% to 50%.

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Oreo’s parent company Mondelez International is significantly cutting marketing costs by investing in artificial intelligence, signaling that the consumer goods industry is accelerating its embrace of new technologies to reshape advertising production models in response to profit pressures.

According to a media report on the 25th, the snack giant is using a new generative AI tool that is expected to cut marketing content production costs by 30% to 50%. The company has invested over $40 million in this technology, which was jointly developed with ad agency Publicis Groupe and IT consultancy Accenture.

The application of this AI tool has already been implemented, and is currently being used to create social media content for the “Chips Ahoy” cookies in the US market and “Milka” chocolates in the German market. According to the plan, in November this year, the tool will be used for Oreo's product pages on Amazon and Walmart in the US, and will expand to the Brazilian and UK markets in the coming months.

Mondelez International’s ambitions go further. Jon Halvorson, the company’s global SVP of Consumer Experience, said that the company expects the tool to be able to produce broadcast-ready TV spots as soon as next holiday season and possibly be used for a Super Bowl commercial in 2027.

AI Applications Implemented, Cost Savings Notable

Mondelez’s AI tool has already demonstrated cost efficiency in actual business. For example, the tool created an eight-second video for Milka chocolate, showing chocolate waves flowing over wafers, and can generate different backgrounds for different target consumers. Jon Halvorson pointed out that traditional animation production usually costs “hundreds of thousands of dollars,” but the cost of using this AI tool is “several orders of magnitude lower.”

Beyond social media content already in use, Mondelez’s rollout is rapidly expanding. The tool will soon be used to enhance Oreo’s product displays on major US e-commerce platforms, and will soon support “Lacta” chocolates and Oreo’s marketing in Brazil, as well as Cadbury’s promotion in the UK. Jon Halvorson added that if the tool can make more complex videos in the future, the savings will increase even further.

Competition Intensifies as Industry Peers Join In

Mondelez’s competitors are also beginning to experiment with AI for advertising production.

Macaroni and cheese producer Kraft Heinz and beverage giant Coca-Cola have both tried AI technology in advertising. For example, in 2024 Coca-Cola ran a holiday ad created by AI, but the computer-generated human figures sparked discussion among some consumers for “lacking real emotion.”

Recognizing the risks of AI technology, Mondelez is taking a cautious approach. Currently, the company avoids using human-like imagery in its AI-generated content. Tina Vaswani, VP of Digital and Data, emphasized that all AI-generated content will be reviewed by humans to prevent any unexpected incidents.

To ensure brand safety, the Chicago-based company has set clear rules. According to a document shared by Mondelez, the company prohibits AI content that promotes unhealthy eating habits, glamorizes overconsumption, uses e-cigarettes, employs emotionally manipulative language, or uses offensive stereotypes.

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