Mondelez International has launched a new marketing model that the global snack maker says will allow it to improve the return on investment of its global media spending.
Dubbed the ‘fearless marketing’ model, Mondelēz International says it will focus on new media partnerships to acquire, develop and distribute content properties that will generate revenue and build its ‘power brands’, which commanded more than 80 per cent of the company’s marketing support in 2015.
Mondelez International is set to focus more on branded content through media partnerships with publications such as BuzzFeed as well as invest more in apps and digital capabilities.
The company says this approach will enable it 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 per cent of the company’s global media investments to break even or turn a profit by 2020.
Laura Henderson, global head of content and media monetization at Mondelez International, said: “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.”
“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, chief media and e-commerce officer at Mondelēz International, said: “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.”
As part of this new model, the company has announced the creation of a collection of content properties across a variety of formats in film, television, digital and mobile platforms.
Mondelez International says the new agreement with BuzzFeed is one of the first of its kind which will build content capabilities for Mondelez International’s portfolio of brands.
The initiative will continue integrations like food and recipe content on platforms such as 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.
Lee Brown, global chief revenue officer, BuzzFeed, said: “As the media industry continues to evolve, BuzzFeed is evolving right alongside it. Partnering with Mondelez International allows us to combine our strengths in native advertising and develop content that resonates with our global audiences at scale.”
In addition, Mondelez International will also build on the success of the Oreo Twist Lick Dunk game, with the company to also roll out a suite of engaging branded games with the aim of being commercially viable.
Confectionery brand Sour Patch Kids will be the first to launch a mobile game later this year with more brands following over the next 18 months.