Mondelez shifts marketing to apps, videos

Mondelez International is rolling out new media marketing plans in a move away from traditional advertising to create its own content.

Following its successful Oreo “Twist, Lick, Dunk” mobile application, the snack company is set to create more apps and online videos to generate revenue.

The free game launched in November 2012 has boosted the company’s revenues through in-app purchases and ads, said Laura Henderson, global head of content and media monetization.

Players have downloaded the game, created by mobile game development studio PikPok, about 7 million times, Henderson said.

Mondelez said it was developing a Sour Patch Kids mobile app, and would change its product advertising by partnering with companies such as Twenty-First Century Fox Inc and online publisher Buzzfeed to produce content including video and a live televised event.

“Capturing audience attention is more difficult than ever. As audiences become more empowered to control their viewing experience, the old model of interruptive advertising is rapidly becoming irrelevant,” said Henderson.

Mondelez International has adopted a new media monetization model that will allow the company to improve the ROI of its global media spending. Through this “fearless marketing” model, it will focus on forming new media partnerships to acquire, develop and distribute content that will build its power brands.

The snack company is hoping that up to 10 per cent of its global media investments will break even or make a profit by 2020.

“This new approach will hold us to a higher standard of creating content that earns attention and is good enough to make money. By developing content that people want to watch, we can begin to monetize our investments, offsetting costs, improving return on investment and making our media spending more sustainable,” Henderson said.  

PepsiCo and Red Bull are two other brands among the growing number of FMCG makers that are sidestepping ad agencies to open in-house content creators.

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