Mondelēz International, the international candy and snack giant whose brands include Oreo, Trident, Nabisco and Cadbury, today announced that it has signed a global agreement with Google focusing on online video, the company's largest digital media deal to date. The agreement includes markets in North America and Europe as well as emerging markets in Eastern Europe, Latin America, the Middle East and Asia Pacific.
The move marks a shift in advertising strategy for the company to digital and, specifically, to online video. Back in June, the company, which spends an estimated $200 million a year on global marketing, announced that half of its marketing budget would go to digital by 2016 when it began buying digital video through ad-tech company TubeMogul. Now, Mondelēz is saying it has committed to shifting 10 percent of its ad budget to online video this year.
"We believe video will be a key growth driver for our brands, and programmatic buying will play an important role in accelerating that growth," explained Bonin Bough, vp, global media and consumer engagement, Mondelēz International, in a statement. "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.'"
Bough noted that the deal is the company's "largest in digital media so far" and will showcase a cost-effective approach to video, with more synergy between media buying, creative production, data and analytics.
Additionally, Mondelēz and Google will partner on new content through YouTube's Brand Partner Program. Mondelēz will introduce the approach with video content featuring "influential digital stars" for Sour Patch Kids candy in the US, and it's considering expanding the approach across other brands and locations should it prove effective.
"We're inspired by the caliber of creative work that brands are creating on YouTube," said Lucas Watson, vp, global brand solutions, Google. "This agreement represents a significant commitment for our companies to accelerate digital brand building, and we're excited to partner with Mondelēz International on this work."