By Sahil Patel
Mondelez International has signed a global video advertising deal with Google as part of the snack giant’s broader commitment to shift ad dollars to digital platforms.
The agreement includes a “substantial” global upfront commitment from Mondelez, which owns brands like Nabisco, Oreo, and Ritz. “This new agreement is our largest in digital media so far,” said Bonin Bough, VP of global media and consumer engagement at Mondelez. “It showcases a cutting-edge approach to video that will make video buying, creative production, data and analytics work together in real time and at a fraction of the cost.”
That said, the companies did not disclose the actual dollar amount of the deal.
Mondelez is pretty committed to moving dollars to digital, particularly video. The company, which spends about $200 million per year in the US according to Kantar Media, has previously stated that it plans to shift 10% of its ad budgets to online video in 2014.
Currently, 58% of consumers “turn to digital platforms for their daily media consumption,” according to Bough. “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 said.
In addition to the ad agreement, Mondelez and Google are also partnering on a series of “content pilots” through YouTube’s Brand Partner Program. With the help of Fullscreen, Mondelez is piloting a “new model of high-quality, low-cost video content” featuring the MCN’s YouTube talent and the Sour Patch Kids brand in the US. It’s also evaluating expanding this approach across brands and geographies, the company said.