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By 2016, Oreo’s Parent Company Will Spend Half Its Marketing Budget On Digital, Betting Big On Video
As it looks to reach consumers beyond the living room to all devices, Mondelez International, the parent company of Oreo, Cadbury, Chips Ahoy, Ritz, Triscuit and dozens of other snack brands, is boldly turning to digital video.
In a deal announced this week, the company will rely on TubeMogul’s software to plan, buy and serve digital video ads programmatically.
The investment in digital video marks a dramatic shift for the international giant and signals digital video’s coming of age. Ivelisse Roche, associate director for global media and consumer engagement at Mondelez, told Adweek that the company will spend half its marketing budget on digital by 2016, up from 25 percent today.
To manage the heightened investment, Mondelez will have a dedicated media buying team at MediaVest specializing in programmatic and relying on TubeMogul’s product suite for buying and auditing digital video ads.
“As a company, we’re aiming to shift more media spending to digital and online video is a key part of that,” said Bonin Bough, VP of global media and consumer engagement at Mondelez in the announcement. “Through TubeMogul, we gain unparalleled transparency in both delivery and pricing. And with MediaVest as a partner, we can leverage our existing infrastructure and expertise while having close proximity between our programmatic and traditional approaches.”
According to TubeMogul, digital video ad auctions shot up by 350 percent in the first quarter of 2014 from the previous quarter as more video is being consumed on smartphones and tablets. Inventory that was bought through programmatic channels directly from publishers increased 191 percent from Q4.
The Mondelez team will start by using TubeMogul in Canada and the U.S. with expansion potential in markets in Africa, Asia, Eastern Europe and the Middle East.