Mondelez International, the world’s preeminent maker of chocolate, biscuits, gum, and candy, has signed a global agreement with Google, focusing on online video. This is part of the company’s strategy to invest more of its media spending in digital and, in particular, online video. Globally, the company has committed to shifting 10 percent of its ad budgets to online video in 2014.
Bonin Bough, Mondelez International’s vice president of global media and consumer engagement, tells ClickZ, “This deal is about accelerating our investment in online video, which we believe can be a significant growth driver for our brands. It will allow us to drive toward greater return on investment (ROI) and ultimately greater reach of our consumer base. We’re really excited that this deal also gives us the opportunity to work with partners like Fullscreen to tap their incredible networks of content creators.”
Bough says, “Today, 58 percent of consumers turn to digital platforms for their daily media consumption. Although we’ve adjusted our media spending to reflect that behavior, there’s still a gap. The deal with Google will enable us to close that ‘digital divide.'”
He adds, “This new agreement is our largest in digital media so far, further solidifying our position as a digital pioneer. It showcases a cutting-edge approach to video that will make media buying, creative production, data, and analytics work together in real time and at a fraction of the cost.”
The agreement includes a substantial global upfront advertising commitment and is strategically aligned with the company’s goal to allocate resources to accelerate expansion of global innovation platforms, Power Brands, and breakthrough technologies.
Mondelez International is a global snacking powerhouse, with a 2013 revenue of $35 billion. Its billion-dollar brands include Oreo, LU, and Nabisco biscuits; Cadbury, Cadbury Dairy Milk, and Milka chocolate; Trident gum; Jacobs coffee; and Tang powdered beverages.
“Online video is crucial for our brands, as it enables us to achieve higher unduplicated reach and ROI. By shifting more of our spending to online video, we’ll significantly increase our ROI and this will help fuel growth for our Power Brands,” says Bough.
Lucas Watson, vice president of global brand solutions at Google, says, “We’re inspired by the caliber of creative work that brands are creating on YouTube.” He adds, “This agreement represents a significant commitment for our companies to accelerate digital brand building and we’re excited to partner with Mondelez International on this work.”
In addition to the advertising commitment, Mondelez International and Google are partnering on content pilots through YouTube’s Brand Partner Program. Together with global youth media company Fullscreen, Mondelez International is piloting this new model of high-quality, low-cost video content featuring influential digital stars with Sour Patch Kids in the U.S. and is evaluating expanding the approach across brands and geographies.
Brokered in conjunction with Starcom MediaVest, the agreement with Google is global and covers developed markets in North America and Europe as well as emerging markets in Eastern Europe, Latin America, the Middle East, and Asia-Pacific.
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