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Mondelez International has launched a new media monetization model that will allow the company to improve the return on investment of its global media spending.
Through this "fearless marketing" model, Mondelez will focus on forming new media partnerships to acquire, develop and distribute content properties that will build its power brands and generate revenue. This approach will enable the company to make larger-scale investments behind its power brands by creating engaging and commercially viable content, thereby leading to incremental revenue streams.
The goal is for up to 10 percent of the company's global media investments to break even or turn a profit by 2020.
Higher Standard of Content
"Capturing audience attention is more difficult than ever," said Laura Henderson, global head of content and media monetization at Mondelez International. "As audiences become more empowered to control their viewing experience, the old model of interruptive advertising is rapidly becoming irrelevant. 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."
Bonin Bough, Mondelez chief media and e-commerce officer, added: "Make no mistake about it, this is the future of how brands and advertisers will connect with consumers and drive real growth. More importantly, this is how brands can continue to help elevate the ecosystem for all of their partners from broadcasters to publishers. This is a different model that is in service of the entire industry."
3 New Initiatives
As part of this new model, the company is announcing the creation of a collection of content properties across a variety of formats in film, television, digital and mobile platforms. The first three planned initiatives are:
- Stride Gum Presents: Heaven Sent — On July 30, Stride gum will debut Heaven Sent, a historic and "mad intense" live event where professional skydiver Luke Aikins will jump from a plane at 25,000 feet with nothing but the clothes on his back, landing safely on the ground. Created by Chris Talley of Precision Food Works and Jimmy Smith of Amusement Park Entertainment, the event will air exclusively in the United States on the Fox network. The event is part of a national campaign to support Stride's new "Mad Intense" gum that will launch in stores this summer and be targeted to teens. The brand will feature a new look and positioning and will offer two new fruit flavors.
- BuzzFeed Partnership: This first-of-its-kind partnership will build content capabilities for Mondelez's portfolio of brands. The initiative will continue successful integrations like food and recipe content on platforms like Tasty as well as new content programs for brands. It will also see the co-creation of a new original content brand in the well-being area.
- Mobile Game Suite: Building on the success of the Oreo Twist Lick Dunk game, Mondelez will be rolling out a suite of highly engaging branded games with the aim of being commercially viable. Sour Patch Kids will be the first brand to launch a mobile game later this year with more brands following over the next 18 months.
"As the media industry continues to evolve, BuzzFeed is evolving right alongside it. Partnering with Mondelēz International allows us to combine our strengths in native advertising and develop content that resonates with our global audiences at scale," said Lee Brown, global chief revenue officer, BuzzFeed.
The content creation model is part of the company's strategy to accelerate growth by distorting investments behind its higher-growth, higher-margin Power Brands. In 2015, these Power Brands commanded over 80 percent of the company's marketing support.
Deerfield, Ill.-based Mondelez International is a world leader in biscuits, chocolate, gum, candy and powdered beverages, with billion-dollar brands such as Oreo, Lu and Nabisco biscuits; Cadbury, Cadbury Dairy Milk and Milka chocolate; and Trident gum.