By 2016, Oreo’s Parent Company Will Spend Half Its Marketing Budget On Digital, Betting Big On Video

Mondelez BrandsAs 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.

Image Source: Mondelez International

Related Topics: Channel: Video | Display Advertising: Programmatic Media Buying | Top News | Video

Sponsored


About The Author: writes about paid online marketing topics including paid search, paid social, display and retargeting. Beyond Search Engine Land, Ginny provides search marketing and demand generation advice for ecommerce companies. She can be found on Twitter as @ginnymarvin.

Connect with the author via: Email | Twitter



Marketing Day:

Get the top marketing stories daily!  

Share

Other ways to share:
 

Read before commenting! We welcome constructive comments and allow any that meet our common sense criteria. This means being respectful and polite to others. It means providing helpful information that contributes to a story or discussion. It means leaving links only that substantially add further to a discussion. Comments using foul language, being disrespectful to others or otherwise violating what we believe are common sense standards of discussion will be deleted. You can read more about our comments policy here.

Get Our News, Everywhere!

Daily Email:

Follow Marketing Land on Twitter @marketingland Like Marketing Land on Facebook Follow Marketing Land on Google+ Subscribe to Our Feed! Join our LinkedIn Group Check out our Tumblr! See us on Pinterest

 
 

Click to watch SMX conference video

Join us at one of our SMX or MarTech events:

United States

Europe

Australia & China

Learn more about: SMX | MarTech


Free Daily Marketing News!

Marketing Day is a once-per-day newsletter update - sign up below and get the news delivered to you!