DEERFIELD, Ill. -- Chocolate, biscuits, gum and candy maker Mondelez International has signed a global agreement with Google focusing on online video. The deal is part of the company's strategy to invest more of its media spending in digital and, in particular, online video.
Globally, the company has committed to shifting 10% of its ad budgets to online video in 2014.
"We believe video will be a key growth driver for our brands, and programmatic buying will play an important role in accelerating that growth," said Bonin Bough, vice president of global media and consumer engagement at Mondelez, Deerfield, Ill. "Today, 58% 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.' This new agreement is our largest in digital media so far, further solidifying our position as a digital pioneer. It showcases a cutting-edge approach to video that will make media buying, creative production, data and analytics work together in real time and at a fraction of the cost."
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.
"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."
In addition to the advertising commitment, Mondelez and Google are partnering on content pilots through YouTube's Brand Partner Program. With global youth media company Fullscreen, Mondelez is piloting a new model of video content featuring influential digital stars with Sour Patch Kids in the United States and is evaluating expanding the approach across brands and geographies.
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 is a global snacking company with 2013 revenue of $35 billion. It 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.
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