Updated: Oct. 3, 9:50 a.m.
Mondelēz International has signed a new deal with Google that focuses on online video, solidifying its global plan to move 10% of its ad budgets to the platform by the end of this year.
The international snack maker that owns Oreo, Cadbury and Trident brands last year had revenues of $35 billion. In 2013, its advertising and consumer spending represented 9.2% of that global revenue.
In North America in 2013, digital represented 25% of the total media budget, but the goal is to be over 50% by 2016. Mondelēz’s media agency in the U.S. is Starcom, and in Canada it’s MediaVest.
According to Bonin Bough, VP of global media and consumer engagement at Mondelēz International, 58% of the company’s customers turn to digital platforms for 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,” Bough said, in a release.
In addition to the advertising deal, Mondelēz International and Google are partnering on a video campaign through YouTube’s Brand Partner Program with multi-channel network Fullscreen. As part of the U.S. program, which has potential to be scaled internationally, Mondelēz International will work with digital influencers to produce “high-quality, low-cost” video content for its Sour Patch Kids brand.
Research from the company shows that digital content provides a higher ROI than other platforms for the brand, according to a statement.
From Media in Canada
Image: Screengrab from Sour Patch Kids trailer