Through a special arrangement, presented here for discussion is a summary of a current article from the monthly e-zine, CPGmatters.
Mondelez has formed a vast strategic partnership with Google and its YouTube unit that will result in 10 percent of the total Mondelez advertising budget going to online video this year.
The deal represents "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," Bonin Bough, VP of global media and consumer engagement for the candy and snacks giant, said in a press release.
"There are three pillars to this," he explained to CPGmatters. "First is that it will provide deeper integration of the insights that Google has around branded video and bring it closer to ours. At the scale Google operates what you could call the largest TV channel in the world, with teams all over the world, they can deploy these insights quickly."
The second pillar of the deal is to help Mondelez optimize ROI with online video as it reaches more diverse audiences and those that are difficult to communicate with via traditional channels such as TV. "What does being the best-in-class online-video advertiser look like?" Mr. Bonin said.
And finally, the Mondelez-Google deal involves exploring new models for content creation "that can allow us to get the sheer volume of content that we need to give consumers what they want," he explained.
"How do we create more branded content?" Mr. Bough said. "It could be pure ads. There could be the next 15- or 30-second TV ads coming out of this process. What's the right creative approach? How do we deliver different video creative to different audience segments? ... The economics of providing enough branded content are very tough given the sheer volume of content you have to create to gain impact and awareness."
It also won't be long before Mondelez and Google invite supermarket retailers into their partnership by taking advantage of apps and location-based technologies to use the new content to influence sales inside the store.
Mr. Bough said, "Google is throwing out insights all day long. If we can match a smartphone to a video user we begin to get to the place where, with anonymized personal data, we can actually see video drive sales. So while there isn't a retailer component that's a direct part of this deal, our push is to get real granular to study how video drives sale and go from there."