Snack giant Mondelez is increasingly leveraging Generative AI to reduce marketing costs and is preparing to launch AI-generated TV ads next year .
Jon Halvorson, Mondelez’s global senior vice president of consumer experience, said the company has spent more than $40 million on an AI video tool that can cut production costs in half. TV ads created using the tool will be ready to air in time for the 2026 holiday season, and possibly the 2027 Super Bowl.
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Mondelez already uses the tool to create content social media for Chips Ahoy cookies and Milka chocolate , and will use it to design online product pages for Oreo cookies (starting in November).
Companies are increasingly turning to AI to reduce advertising costs, though the results have been mixed. Last year, Coca-Cola AI-generated Christmas ads were heavily criticized online. Some said they were "soulless" and others called them creepy.
Mondelez and other companies are turning to AI to create ads
The use of artificial intelligence in advertising is nothing new, but Genetative AI offers new capabilities that could radically change the way ads are created and delivered. Mondelez, with its investment in this technology, seeks to reduce costs and increase the effectiveness of its advertising campaigns.
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Genetative AI enables the creation of content that can be tailored to the consumer’s needs and preferences, offering a more personalized experience. This is especially important in an era where consumers are more demanding and seek content that directly concerns them.
Despite its promise, the use of AI in advertising faces challenges. The criticism Coca-Cola has received shows that the technology can fail to connect emotionally with audiences. The challenge for companies is to find the balance between innovation and maintaining a human touch in their ads.
Mondelez appears determined to harness the potential of AI, investing heavily in the development and implementation of the technology. Its success will depend on its ability to integrate AI in a way that delivers real value to consumers and enhances the image of its products.
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As technology continues to evolve, it’s likely we’ll see more companies follow Mondelez’s lead in looking for ways to incorporate AI into their marketing and advertising strategies. The future of advertising looks set to be digital and consumer-centric, with AI playing a central role in this evolution.
