This $35 Billion Company Will Spend 50% of Ad Dollars on Digital

Mondelez bets big on programmatic buys

It’s snack time for programmatic.

Mondelez International has embraced a new video-buying strategy that focuses on devices everywhere.

The CPG giant, whose stable of brands includes Oreo, Chips Ahoy, Toblerone and Trident, will begin buying digital video through ad-tech firm TubeMogul. The play for programmatic video represents an endorsement of a nascent form of advertising that’s increasingly in demand.

“We are focusing on a more screen-agnostic approach and moving away from a traditional media focus on consumers in the living room,” said Ivelisse Roche, Mondelez’s associate director for global media and consumer engagement.

Mondelez is trying to capture audiences that are mobile and increasingly viewing video content online versus television. “Programmatic fits within the larger digital optimization strategy we’ve been employing for the last year as we shift more media spend to digital, and online video is a major area for growth,” Roche said.

Digital video represents an opportunity to deliver media-rich brand campaigns like the ones seen on TV but with more of an opportunity to fine-tune messaging. “Advertisers are looking for a way to more effectively target customers,” as Patrick Dolan, COO of the IAB, noted.

There also is a craving for premium inventory. “There’s been a shortage of real quality supply historically,” Dolan added. “But the quality of supply will increase because of the proliferation of additional devices for consumption.”

The latest Adobe Digital Video Report counted 35.6 billion online video plays last quarter, 25 percent of which came via mobile users. In the quarter, TV Everywhere consumption across devices grew 253 percent year over year.

With the boom in digital video, marketers are still scrambling to catch up, including creating the tools to place ads, the pipes to carry them and the standards to measure them.

Mondelez spends an estimated $200 million a year on marketing globally, with as much as 25 percent devoted to digital. Roche said that figure will swell to 50 percent by 2016, with video representing a rapidly growing portion.

Agencies have been known to be wary about brands working directly with ad-tech companies, but not in this case: The TubeMogul deal was a collaboration between Mondelez and MediaVest.

Mondelez was careful to maintain control of its data and information pertaining to its marketing campaigns, Roche said.

MediaVest said it would train a team to handle video buying and reduce the administrative burden, according to Roche.

“In the future, we may look for a more simplified model,” she said.

Publish date: June 15, 2014 © 2020 Adweek, LLC. - All Rights Reserved and NOT FOR REPRINT