Mondelez pens ‘biggest’ global video ad deal with Google
Mondelez International has agreed a “substantial global advertising commitment” with Google that will see it shift more of its global advertising budget to online video.
The move backs the snacks maker bid to shift 10 per cent of its global spend to online video in 2014. Financial details of the deal, which was brokered by Starcom MediaVest, were not disclosed but the company says it is “our largest in digital media so far”.
It gives Mondelez marketers deeper insight into the performance of video campaigns across sites such as YouTube and Google+, while also offering them production, programmatic and media buying expertise.
As part of the deal, Mondelez will pilot branded content through YouTube’s Brand Partner Program. It is working with global youth media company Fullscreen to produce “low-cost” videos featuring emerging digital stars for its Sour Patch Kids sweet brand in the US.
Bonin Bough, vice president of global media and consumer engagement at Mondelez, says: “We believe video will be a key growth driver for our brands, and programmatic buying will play an important role in accelerating that growth.
“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 company paved the way for the deal earlier this year when it announced it would be serving video ads through ad tech firm Tubemogul’s demand-side-platform (DSP) – a system which lets advertisers manage multiple ad and data exchanges through one interface. The platform audits ads and measures the viewability of videos through alternate channels such as publisher sites or ad networks as well as develop premium inventory.
The video rush builds on the company’s commitment to shift more spend into the digital arena that has already seen it strike deals with Twitter and Facebook as well as a mobile-only deal with Google. The partnerships are working toward Mondelez’s goal to spend more than half its global $200m (£117.9m) ad budget on digital by 2016 after finding campaigns for brands such as Crème Egg yielded a better return on investment online than from TV ads.
Despite the breadth of its digital ties compared to rivals, the company admits it has “not yet closed the digital divide”.
“Today, 58 per cent 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”, adds Bough.
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