International candy maker Mondelez has inked a global partnership with Google in a bid to push further into the online video realm.
According to Bonin Bough, vice president of global media and consumer engagement at Mondelez International, this new agreement is the company’s largest investment in digital media. This is also part of the company’s strategy to invest more of its media spending in digital and, in particular, online video. Globally, the company also committed to shifting 10% of its ad budgets to online video in 2014.
Brokered in conjunction with Starcom MediaVest, the agreement with Google is global and covers developed markets in North America and Europe as well as emerging markets in Eastern Europe, Latin America, the Middle East and Asia Pacific.
“Today, 58% of consumers turn to digital platforms for their daily media consumption. Although we’ve adjusted our media spending to reflect that behaviour, there’s still a gap. The deal with Google will enable us to close that ‘digital divide’,” said Bough.
He added that video will be a key growth driver for the brand, and programmatic buying will play an important role in accelerating that growth. Meanwhile, online video will also play a crucial role as it will enable the brand to “achieve higher unduplicated reach and ROI.”
“By shifting more of our spending to online video, we’ll significantly increase our ROI and this will help fuel growth for our Power Brands,” Bough added.
In addition to the advertising commitment, Mondelez International and Google are partnering on content pilots through YouTube’s Brand Partner Program. Together with global youth media company Fullscreen, Mondelez International is piloting this new model of high-quality, low-cost video content featuring influential digital stars with Sour Patch Kids in the U.S. and is evaluating expanding the approach across brands and geographies.