DEERFIELD, Ill. -- Mondelez International Inc. has signed a global strategic agreement with Google, it said. The deal will focus on mobile search, mobile display and mobile websites. This "mobile-only" media deal is part of the chocolate, biscuits, gum and candy maker's commitment to invest 10% of its global marketing budget in mobile activations across the entire consumer journey.
"Mobile is a means to reach consumers where they live and interact," said Bonin Bough, vice president of global media and consumer engagement at Mondelez. "The phone is the one device that consumers have with them at all times. By 2016, 67% of the global population will have a mobile phone and nearly half of the population will have smartphones. This is driving us to think differently about consumer engagement."
He added, "Our goal is to become one of the top mobile marketers in the world, and this collaboration with Google will help us get there. It provides us with a competitive advantage, particularly in fast-growing emerging markets."
Brokered in conjunction with Starcom MediaVest, the global mobile deal with Google covers 16 countries, from developed markets in North America and Europe to emerging markets in Eastern Europe, Latin America, the Middle East and Asia Pacific--with a particular focus on BRIC (Brazil, Russia, India and China) and emerging markets. Going beyond a traditional media impressions deal, it includes creation of branded mobile websites, training and mobile capability building, analytics and an opportunity to opt in to Google's mobile beta programs.
"Mobile devices are transforming consumer behavior and creating countless opportunities for marketers to engage consumers, whether they're on the go, at home, or shopping in a store. Mondelez International is one of the first to truly step up with a strategic global mobile deal of this reach and execution. We're thrilled to work hand in hand with Mondelez International on their global mobile efforts," said Eileen Naughton, vice president of global sales at Menlo Park, Calif.-based Google Inc.
Mobile advertising has the potential to get brands back in front of the faces of distracted consumers--Mondelez might be able to use geo-targeting to serve an ad for Trident to a consumer who has just visited a coffee shop and might need a breath freshener, Reilly told AdAge in an interview.
"As we look at mobile as a pure media platform, we're seeing engagement rates that are sometimes four times greater than traditional display," said Beth Reilly, head of global digital strategy at Mondelez. "So we're mapping media against the entire consumer journey and re-thinking our media investment through a mobile lens. The Google global deal is a great example of this approach, but there will be others to come soon."
Deerfield, Ill.-based Mondelez is a global snacking company with 2012 revenue of $35 billion. It is a world leader in chocolate, biscuits, gum, candy, coffee and powdered beverages, with billion-dollar brands such as Cadbury, Cadbury Dairy Milk and Milka chocolate; Jacobs coffee; LU, Nabisco and Oreo biscuits; Tang powdered beverages; and Trident gum.
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