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Mondelez International Launches New Media Model to Fuel Growth

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Mondelez International Launches New Media Model to Fuel Growth

Mondelez International Launches New Media Model to Fuel Growth
June 02
09:32 2016

Mondelēz 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, Mondelēz International 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.

“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,” says Laura Henderson, Global Head of Content & Media Monetization at Mondelēz International. “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.”

“Make no mistake about it, this is the future of how brands and advertisers will connect with consumers and drive real growth,” says Bonin Bough, Chief Media and E-Commerce Officer at Mondelēz International. “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 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 Saturday, 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, Precision Food Works, and Jimmy Smith, Amusement Park Entertainment, the event will air exclusively in the U.S. on FOX at 8 p.m. ET/PT. It will be executive produced by Mondelēz International, Amusement Park Entertainment and four-time Emmy Award winner Al Berman. Mondelēz International is looking to make the event available across the globe through broadcast, online streaming and pay-per-view platforms.

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 Mondelēz International’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. BuzzFeed is a cross-platform, global network for news and entertainment that generates six billion views each month. BuzzFeed creates and distributes content for a global audience and utilizes proprietary technology to continuously test, learn and optimize.

* Mobile Game Suite: Building on the success of the Oreo Twist Lick Dunk game, Mondelēz International 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,” says Lee Brown, Global Chief Revenue Officer, BuzzFeed.

The content creation model is part of Mondelēz International’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.

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