Mondelēz International's announcement earlier this week that it will allocate 10 percent of its advertising budget to online video now means 20 percent of the snack brand's global spend goes to mobile and online video.
On Wednesday, the snack giant inked a one-year commitment with Google to fork over 10 percent of its global advertising budget to online video for its brands, which include Oreo, Cadbury and Trident gum. As part of its online video initiatives, Mondelēz will ramp up its work with YouTube's Brand Partner Program and influencers.
The Google deal adds to another marketing program that Mondelēz rolled out in 2012, dubbed Mobile Futures. Mondelēz has dedicated 10 percent of its global marketing spend to mobile as part of Mobile Futures. The program matches up a small handful of brands (including Chips Ahoy and Stride gum) with start-ups to roll out campaigns.
Similar to this week's online video commitment, Mobile Futures also included a one-year deal with Google in 2013 to beef up mobile websites, search and display initiatives.
"It helps in our commitment to get to 10 percent of investment in mobile marketing. Next to that, we’re also now committing to [an additional] 10 percent of media in online video," said Mondelēz rep Valerie Moens.
The mobile and online video spend are part of the company's goal to move 50 percent of North American spend to digital by 2016. Last year, 25 percent of the candy maker's regional spend went to digital.
Mondelēz says it has good reason to bet on online video based on the success of Mobile Futures so far. Several of the initial mobile pilots are now national programs, and new start-ups have been added to work directly with brands. Since 2012, Mobile Futures has also been launched in Brazil and Australia.