Mondelez to Launch AI‑Generated TV Ads for Oreo and Other Brands
Key Points
- Mondelez has invested more than $40 million in a generative‑AI video platform.
- The AI tool can reduce advertising production costs by roughly 50%.
- AI‑generated social videos are already in use for Chips Ahoy and Milka.
- Mondelez plans AI‑driven TV ads for Oreo ahead of the holiday season.
- The campaign may also appear during the next Super Bowl.
- The company will use the AI system to design online Oreo product pages.
- Industry peers have seen mixed results, exemplified by Coca‑Cola’s AI Christmas ads.
- Success could reshape how snack brands allocate marketing budgets.
Mondelez International is deploying a generative‑AI video platform that it says can halve advertising production costs. Senior vice president Jon Halvorson disclosed that the company has invested more than $40 million in the tool, already using it for social content for Chips Ahoy and Milka, and plans to create AI‑driven TV commercials for Oreo that could debut during the upcoming holiday season and possibly the next Super Bowl. The move reflects a broader industry shift toward AI‑powered marketing, though past efforts such as Coca‑Cola’s AI‑generated Christmas ads have drawn mixed reactions.
Mondelez’s AI Initiative in Advertising
Mondelez International, the maker of snack brands such as Oreo, Chips Ahoy and Milka, is advancing its marketing strategy with a generative‑AI video tool. The company says the technology can cut the cost of producing advertisements by roughly half, a claim supported by senior vice president of consumer experience Jon Halvorson. He noted that Mondelez has allocated more than $40 million to develop and refine the AI platform.
The AI system is already being used to create social‑media videos for Chips Ahoy cookies and Milka chocolate. Building on that work, Mondelez plans to apply the technology to television advertising for Oreo, aiming to have the AI‑generated spots ready in time for the holiday shopping period and potentially for the following year’s Super Bowl. In addition to TV commercials, the firm intends to use the tool to design online product pages for Oreo later in the year.
Industry Context and Mixed Outcomes
Mondelez’s adoption of AI reflects a growing trend among consumer‑goods companies seeking to reduce marketing expenditures while maintaining creative output. However, the broader industry experience with AI‑driven advertising has been uneven. For example, Coca‑Cola’s AI‑generated Christmas advertisements were publicly criticized, with some viewers describing the content as “soulless” and unsettling.
These mixed reactions underscore the challenges of balancing cost efficiency with the emotional resonance that traditional advertising seeks to achieve. Nonetheless, Mondelez appears confident that its investment will deliver both financial savings and compelling brand narratives, leveraging the AI platform’s ability to rapidly produce high‑quality visual content.
Potential Impact on Future Campaigns
If successful, Mondelez’s AI‑generated TV ads could set a new benchmark for how snack brands approach large‑scale advertising. The anticipated rollout during a peak consumer‑spending season suggests the company aims to capture audience attention while demonstrating the capabilities of its AI technology. The possibility of featuring the AI‑crafted spot during a marquee event such as the Super Bowl further signals Mondelez’s ambition to test the limits of AI in high‑visibility advertising.
Beyond immediate cost reductions, the initiative may influence how Mondelez and its peers allocate resources across creative development, media buying, and analytics. By automating portions of the production process, the company could free up budget for other strategic initiatives, such as personalized digital marketing or expanded product innovation.
Outlook
Mondelez’s substantial financial commitment to the AI video tool highlights its belief in the technology’s long‑term value. While the industry has witnessed both praise and criticism of AI‑generated content, the upcoming Oreo television campaign will provide a concrete case study on the effectiveness of AI in mainstream advertising. Observers will watch closely to see whether the campaign resonates with consumers and whether it can achieve the promised cost efficiencies without sacrificing brand appeal.