Mondelez International signs video deal with Google
Mondelēz International, the candy giant whose brands include Oreo, Trident, Nabisco and Cadbury, has signed a global partnership with Google focusing on online video. In the company’s largest social media deal to date, the agreement will include markets in North America, Europe and Eastern Europe, as well as Latin America, the Middle East and Asia Pacific.
The deal marks a shift in advertising strategy for Mondelēz International as it moves to digital – specifically to online video. In June of this year, the company announced that half of its $200 million a year global marketing budget would be going to digital by 2016, and has already committed 10 percent of its ad budget to online video as of this year.
“We believe video will be a key growth driver for our brands, and programmatic buying will play an important role in accelerating that growth,” says Bonin Bough, Vice President – Global Media and Consumer Engagement, Mondelēz International. “Today, 58 percent of consumers turn to digital platforms for their daily media consumption. Although we’ve adjusted our media spending to reflect that behaviour, there’s still a gap. The deal with Google will enable us to close that digital divide.”
Mondelēz International and Google are also set to partner on new content through YouTube’s Brand Partner Program. Mondelēz will introduce the approach by providing video content featuring Sour Patch Kids candy in the US, and is considering expanding the approach across other brands and locations if this proves successful.
Lucas Watson, Vice President of Global Brand Solutions at Google adds, “We’re inspired by the caliber of creative work that brands are creating on YouTube. This agreement represents a significant commitment for our companies to accelerate digital brand building, and we’re excited to partner with Mondelēz International on this work.”