Mondelez International, owner of brands such as Cadbury Oreo and Trident Gum, is now committing 10% of its ad budget to mobile and 10% to online video via Google.
Video, the company said in a statement, will be a “key growth driver” for its brands.
The agreement includes a substantial global upfront advertising commitment and aligns strategically with the company’s goal to allocate resources to accelerate expansion of global innovation platforms, its “Power Brands” and breakthrough technologies.
The company, whose brands include Trident, Cadbury and Oreo, devoted a quarter of its North America ad budget to digital in 2013 and plans to increase that to 50% by 2016.
“Today, 58 percent of consumers turn to digital platforms for their daily media consumption,” said Bonin Bough, vice president of global media and consumer engagement. “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.'”
“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,” Bough added.
“We’re inspired by the caliber of creative work that brands are creating on YouTube,” said Lucas Watson, vice president of global brand solutions for Google. “This agreement represents a significant commitment for our companies to accelerate digital brand building.”
Mondelez said it also is partnering with Google through YouTube’s “Brand Partner” program, by offering video content. The company is planning videos featuring “Sour Patch Kids” to air on YouTube in the U.S.
Mondelez said it may expand its video offerings worldwide and include additional brands.
Brokered 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.
Mondelez generated revenue of $35bn in 2013 and is a world leader in biscuits, chocolate, gum, candy, coffee and powdered beverages, with billion-dollar brands such as Oreo, LU and Nabisco biscuits; Cadbury, Cadbury Dairy Milk and Milka chocolate; Trident gum; Jacobs coffee and Tang powdered beverages.
