Mondelēz unveils media monetization model as consumers skip traditional ads

By Douglas Yu contact

- Last updated on GMT

Mondelēz power brands commanded over 80% of advertising and consumer (A&C) support.
Mondelēz power brands commanded over 80% of advertising and consumer (A&C) support.

Related tags: Advertising, Cadbury adams

Mondelēz International is aiming to offset some of its marketing costs and improve return on investment by developing original media content "that people want to watch".

Consumers were increasingly skipping, blocking or avoiding traditional advertising entirely, which made it more expensive than ever before to reach audiences, Mondelēz told ConfectioneryNews.

“We need to focus on creating content for our brands that earns attention," ​said spokesperson Michael Mitchell, although he added the company won’t be abandoning traditional advertising.

How does media monetization model work?

The new media monetization model focuses on forming new media partnerships to acquire, develop and distribute original content properties.

“This will enable our brands to make larger-scale investments in content by creating engaging and commercially viable content,"​ said Mitchell. "And by developing unique content that consumers want to watch, the model will help us accelerate growth through the creation of incremental revenue streams.”

Mondelēz kicked off the new model by launching three initiatives that could potentially create business value.

Theses include live broadcasting skydiver Luke Aikins jumping from a plane with "only the clothes on this back​", which will be executive produced by Mondelēz and air exclusively on Fox to promote Stride’s new Mad Intense gum. Mondelēz is aiming to make the event available across the globe through broadcast, online streaming and pay-per-view platforms.

Mondelēz's new gum product will enter the US market this summer

As part of the new model, Mondelēz will also partner with BuzzFeed’s Tasty section and launch a mobile game for its Sour Patch Kids brand similar to the Oreo Twist Lick Dunk game.

10% profit return from global media investments

Mitchell said the new initiative is a “critical”​ part of Mondelēz’s growth strategy - particularly for power brands including Oreo, Cadbury Dairy Milk, Trident and Stride. These brands command more than 80% of advertising and consumer (A&C) support.

“With this original content model, our ultimate goal is to monetize up to 10% of our global media investments by 2020 by having these investments break even or turn profit,"​ he added.

Mondelēz believes aspects of the model may eventually support the e-commerce side of the business, but is focusing on building partnerships across multiple media channels.

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